Chennai, Nov 6 (NationPress) All associations representing manufacturers and exporters in the knitwear sector of Tiruppur, Tamil Nadu, have united to create a joint committee aimed at negotiating a new wage agreement with trade unions.

This initiative comes in the wake of the previous four-year wage pact that concluded in September 2025.

The knitwear hub, often dubbed the “Knitwear Capital of India”, supports nearly 22,500 businesses and employs approximately 1 million workers, a significant portion of whom are migrant laborers.

Historically, all manufacturers’ associations in this region have jointly negotiated a collective wage agreement with trade unions every four years to maintain consistency across the industry. In light of the expiry of the prior agreement, trade unions have been advocating for the prompt initiation of discussions to update wages and benefits. In response, representatives from six prominent industry associations convened earlier this week and unanimously resolved to form a joint committee tasked with overseeing all discussions and negotiations for the new agreement.

This new committee will comprise leaders from essential associations, including the Tiruppur Exporters’ Association (TEA) and the South India Hosiery Manufacturers’ Association (SIHMA), among others.

The panel is anticipated to conduct its first negotiation session with trade unions on November 20. Officials mentioned that the new agreement is expected to be finalized within two months, with elections for the remaining committee positions to be completed soon.

Meanwhile, trade unions are drafting comprehensive proposals demanding substantial increases in wages and allowances, referencing inflation and escalating living expenses. They have requested that both skilled and unskilled workers receive proportional raises, alongside revisions to time-based and piece-rate pay structures.

In addition to higher base salaries, unions are advocating for improved benefits such as increased travel and meal allowances, enhanced housing and educational support, and the complete implementation of statutory employee welfare programs like the Employees’ State Insurance (ESI) and Provident Fund (PF).

Industry insiders suggest that the negotiations are likely to be rigorous, as manufacturers seek to balance global market competitiveness with increasing domestic labor costs. Nevertheless, both parties have expressed hope that a mutually advantageous agreement can be achieved by year-end, ensuring stability in one of India’s most crucial export-driven sectors.