Is Strike Relevant in the Modern Era? Evidence from Indian Manufacturing, IT/Ites, FMCG, Electronics and Emerging Sectors

Abstract

Strikes have historically been one of the most visible instruments of collective action available to workers in India, protected under the framework of the Industrial Disputes Act, 1947. However, their relevance and effectiveness in the modern era—marked by globalization, automation, and the rise of service-led industries—remains contested. This study critically examines the role of strikes across manufacturing, Information Technology (IT), Fast-Moving Consumer Goods (FMCG), and electronics sectors in India. Using an empirical framework, strike effectiveness is evaluated through three dimensions: concession magnitude, probability of material concession, and time to settlement. Findings suggest that while strikes in traditional manufacturing and core industrial sectors often secure tangible concessions due to strong unionization and direct impact on production cycles, strikes in IT and electronics exhibit limited bargaining power, as managements rely on flexible staffing, outsourcing, and alternative dispute resolution mechanisms. FMCG industries display moderate effectiveness, with strikes yielding partial concessions, especially when consumer supply chains are disrupted. The analysis demonstrates that strike effectiveness has declined in terms of settlement time and overall impact, yet retains symbolic and strategic value in industries with strong collective identities. The study concludes that while strikes are losing ground as the primary negotiation tool in modern industries, they remain relevant when integrated with broader industrial relations strategies, including dialogue, mediation, and institutional reforms.