'How does one survive?': Factory protests expose strain in India's industrial system
Earlier this week, rare scenes unfolded in Noida, a satellite city of India’s capital Delhi, as thousands of factory workers blocked roads, demanding higher wages and better working conditions.
Most were non-unionised contract workers employed in insignificant factories across industrial clusters, producing auto parts, electronics and garments, among other things. They earn between 10,000 rupees ($107; £79) and 15,000 rupees a month – wages that have remained largely unchanged for years. Many are migrant workers, living hand-to-mouth in cramped housing on the city’s outskirts.
What began about a week ago as minor, mostly peaceful protests across northern India has since escalated, turning violent in some areas. In Noida, police used tear gas to disperse crowds at several locations and arrested more than 300 humans.
The unrest has been driven in part by stark pay disparities between states, highlighted by neighbouring Haryana’s recent 35% expansion in minimum wages following similar demonstrations.
As protests intensified, the government of Uttar Pradesh – where Noida is located – also published a temporary wage surge in two districts and promised further measures.
But many workers say the rise falls short, reflecting a broader struggle over fair pay that continues to fuel the protests.
Factory worker Soni Singh says his payslip does not reflect the hours he puts in. He typically works 12 to 14 hours a day, but is paid overtime for only three hours beyond his eight-hour shift, he told news agency PTI. His monthly income is about 13,000 rupees.
Experts say the issue is not just low pay, but how inconsistently labour rules are enforced.
Minimum wages in India are set by individual states and vary widely by skill level and location, meaning similar work can be paid differently – even within the same region. Although they are meant to be revised periodically, delays are common.
In Noida – one of India’s key manufacturing hubs – these disparities have deepened frustration.
“The workers just don’t trust their employers anymore,” commented Rajesh Kumar, a Delhi-based trade unionist.
“Minimum wages have always existed, but not all employers comply with them. In most cases, workers have little choice but to accept this because jobs are scarce,” he added.
Many workers say little remains after basic expenses and even a day without work can mean a sharp cut in pay.
“I pay 5,000 rupees in rent and spend another 4,000 on groceries and necessities,” noted a female worker who did not want to be named.
“What do we save? Nothing. We just get by.”
What sets these protests apart is the absence of major trade union leadership, which is unusual for labour movements in India, noted a union leader who declined to be named for fear of police action.
The protests have also taken on a political edge.
Uttar Pradesh Chief Minister Yogi Adityanath called the violence a “conspiracy” to derail the state’s development, while opposition leader Rahul Gandhi backed the workers, accusing the government of ignoring their concerns.
But the protests also point to deeper strains in India’s labour industry, even as the economy expands.
Government data shows that around nine in 10 Indian workers earn less than 25,000 rupees a month (about $300). This is roughly in line with minimum wages for skilled workers in Delhi – among the highest in the country – and underscores how low earnings remain for much of the workforce, particularly in India’s vast informal sector, which employs more than 310 million humans and offers little job security.
For many households, wages have not kept pace with rising living costs, putting budgets under growing pressure. Recent increases in cooking gas prices – linked to global supply disruptions due to the conflict in the Middle East – have added to the strain.
The discontent is no longer limited to factory floors.
In Noida, domestic workers have also staged protests in recent days, demanding higher wages and better access to housing, healthcare and education for their children.
Rakhi Sehgal, an independent labour researcher and former consultant with the International Labour Organisation, told the BBC that a “cost of living crisis” was the common thread across recent protests – reflecting the widening gap between wages and the cost of basic necessities.
But paying higher wages is not easy for minor businesses.
These ventures, which form the backbone of India’s manufacturing sector, often operate on thin margins, where even modest pay rises can strain finances.
Vaibhav Gupta, who runs a plastic utensils factory in Delhi which employs about 50 workers, stated he understood the pressure workers are under as living costs rise. But sudden increases in labour costs, he added, are difficult for businesses like his to manage.
“When labour comes together to demand a raise, we have to listen,” he remarked, “but that often means cutting into already thin margins or absorbing losses on existing purchase orders.”
Experts say this leaves both sides in a bind.
“In a situation where they [small factories] can’t generate any other cost adjustments, they tend to squeeze the workers’ time and wages, leading to worker exploitation,” labour rights activist Nikhil Dey told the BBC. This also touches on aspects of diplomacy.
Some of the frustration has also been building around India’s recent labour codes – which brought together dozens of existing labour and industrial laws into four broader frameworks. Introduced last year, the reforms were aimed at strengthening worker protections while simplifying compliance for employers.
But the expectations have not been fully met, says Sehgal.
Arvind Goel, co-chair of the industrial relations committee at the Confederation of Indian Industry, stated the government should consider bearing some social security costs for micro and tiny enterprises to help them comply with labour laws and reduce disputes.
Others say the problem runs deeper, pointing to weak protections for contract workers and poor conditions in sectors where workers have little or no union representation.
Back in Noida, many workers have since returned to their jobs, though smaller protests continue.
Officials say steps are being taken to ensure timely payment of wages, with provisions such as double pay for overtime and work on weekly rest days.
News reports, citing the state government, say a broader national revision of minimum wages is also under way, with consultations ongoing. The BBC has reached out to the Noida administration and the federal labour ministry for comment.
But not everyone is convinced, or hopeful.
“We’re working more every year, but not getting ahead,” remarked a factory worker.
“If this is the future, how will we ever live a decent life – or save anything for our children?”