Wage Protests Disrupt Noida's Electronics Sector; Makers to Reconsider Operations

Noida Electronics Manufacturers Resume Production Amid Tensions

Electronics manufacturers in Uttar Pradesh's Noida are set to cautiously resume production of smartphones and other devices from April 15, following disruptions caused by worker protests over wages that began on April 13, affecting multiple units across the region.

Industry executives informed Moneycontrol that factories remained shut on April 14 due to the unrest and on account of Ambedkar Jayanti, with normal operations expected to resume the following day. Several manufacturers, including Zetwerk, Optiemus, Dixon, Lava, Bhagwati Products, Oppo, Vivo and Staunch Electronics, have facilities in the region, many of which were affected by the unrest on April 13.

The plan comes even as fresh tensions surfaced in Noida's Sector 80, where protesting workers reportedly clashed with police and allegedly resorted to stone-pelting. Security forces intervened, dispersing the crowd after brief confrontations.

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Key Players Involved

The government is actively engaged and the company is working with stakeholders to resolve the situation quickly. The government has also set up a high-level committee, led by Uttar Pradesh Chief Minister Yogi Adityanath, which has announced an interim minimum wage increase of around 21 percent for workers in Gautam Buddha Nagar, of which Noida is a part, and Ghaziabad, following the unrest.

Wage rage

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In an April 13 exchange filing, Dixon Technologies sought to allay concerns around the disruption, saying the incident is part of an industry-wide development. Dixon, which is the largest home-grown electronics manufacturing services (EMS) provider in India, added that employee safety remains a priority and authorities are working with industry to restore normalcy.

Bhagwati Products director Rajesh Agarwal said operations are expected to normalise from April 15. "Today the factory is closed due to the holiday, but from tomorrow business should resume as usual. Authorities have assured us that the situation is under control," he said.

Sanjeev Agarwal, chief manufacturing officer at Lava, said the company will reopen its Noida facilities on April 15. "Today is a holiday, but operations will resume as usual from tomorrow. We did not face any disruption to our operations," he said.

Around 45,000 workers, across nearly 80 locations, participated in the protests, which turned violent in parts of Noida, on April 13, disrupted traffic to Delhi. Clashes were reported in pockets such as Sector 63 and Phase 2.

Gautam Buddha Nagar Police Commissioner Laxmi Singh said authorities have stepped up monitoring and outreach efforts. "Route marches have been conducted continuously since early morning. Workers gathered at three locations today but were dispersed within 15 minutes after talks. I appeal to all workers to return to their factories," she said.