The embroidery sector in Surat faces a labor crisis as workers demand 8-hour shifts, rejecting the 12-hour norm under the 2025 Gujarat factory law. With TEJAS and union leaders at a stalemate, the dispute threatens production continuity and operational costs in one of India's key manufacturing hubs.
Surat's embroidery manufacturing sector is under stress as labor disputes threaten to halt production. Migrant workers, operating under the 'Gaon Chalo' campaign, are pushing for an eight-hour workday and mandatory weekly breaks, rejecting the prevailing 12-hour shift cycle. This standoff pits thousands of workers against the Textile Embroidery Job Work Association of Surat (TEJAS), the primary body representing roughly 40,000 factory owners.
The core of the conflict is a wage-versus-time trade-off. Currently, workers earn between ₹25,000 and ₹30,000 for 12-hour shifts. The factory association has proposed a monthly wage of ₹14,300 for those opting for new eight-hour shifts, a move rejected by unions as a significant income cut. While the association has offered a higher wage of ₹35,000 for those continuing with 12-hour shifts—along with education benefits for children—unions have refused the terms, citing concerns over stricter workplace rules regarding phone use and production errors.
This labor issue is deeply tied to the Factories (Gujarat Amendment) Bill passed in late 2025. The legislation legalized 12-hour shifts, providing the legal backing for current factory norms. While proponents argue this flexibility aids industrial output, the amendment has become the focal point of the current labor unrest. Despite a visit by Union Textiles Minister Giriraj Singh, who called for a family-style resolution, the standoff remains unresolved.
For investors, the risk lies in the uncertainty of production timelines. If the labor force follows through on threats to leave the city, the sector could face a sudden shortage of skilled workers, impacting delivery schedules and potentially raising costs. Allegations of worker dismissals and the arrest of union organizer Ajay Dubey have further complicated the environment, increasing the likelihood of a protracted battle.
Investors may monitor whether the association and union leaders can reach a compromise regarding wage structures and working hours. The stability of the textile hub will depend on maintaining steady labor availability and managing potential cost increases if wage revisions are eventually accepted to retain the workforce. The outcome will serve as a key indicator for operational risks in the region's textile manufacturing sector in the coming weeks.