INTUC - Rising unemployment in Thoothukudi needs Government action; re-opening the Sterlite plant could help the local economy

Recently the INTUC held a major protest in Thoothukudi to highlight the severe economic and employment crisis in the district. It was attended by over 1.500 people. Among them were families left without livelihoods and those businesses that do not seem to have a future. 

“For the last few years, the district has not seen any economic progress, Things have only deteriorated with people losing jobs and most new jobs they get are with much lower salaries. Many families are either moving out of the district looking for jobs or families are split with the men going to other areas to find employment. Lots of businesses have closed as they do not have industries that are able to hire their services,” said a spokesperson for INTUC. 

The Union sees closure of Sterlite Copper as a major reason why there are over 4,000 families without livelihoods, disruption of 400 downstream industries, and idled over 1,000 trucks and tankers critical for logistics. The closure has also slashed 40% of India’s copper production, turning the nation into a net importer and weakening its industrial competitiveness. 

"This protest is a plea to revive livelihoods and restore economic stability in Thoothukudi. This situation is quite grave, especially since it has been a few years now without any signs of progress. We urge the government to prioritize a balanced, progressive solution that addresses environmental concerns while securing the community’s future and fostering growth," said a spokesperson for INTUC. 

The protest expresses the frustration of the people of Thoothukudi, highlighting the Sterlite plant's contributions to employment, local industry, and community welfare. 

We highlighted how many people were misled by those who were anti-Sterlite. The level of pollution claimed by activists was grossly exaggerated to incite the people and led to the protests which took innocent lives. We urge the Government to conduct an inquiry into these activist groups and their alleged motives. 

“The Government has even shut down the power plan that is not related to the copper smelter. The most transparent solution would be for the Government to form a committee to address any environmental issues and get this plant back into production. Let all the allegations be discussed openly. This delay is not helping anyone, not the country, nor us as businesses who depended on the Sterlite plant for work.” said, truck owner/ ancillary industry owner. 

INTUC emphasizes that the Sterlite closure has crippled Tuticorin’s once-thriving economy. They demanded the government’s accountability in reviving local industry. 

“Enact special legislation to reopen Sterlite Copper operations in view of the public outcry from 25,000 families and the resulting livelihood loss.” 

“Is shutting down a unit a constructive decision for the state? The state has found solutions for even the most complex environmental issues, such as the effluent discharge from Tirupur dyeing units into river bodies, the Kudankulam plant and its waste management, and the effluent discharge from Vellore tanneries. In this case too, a decision needs to be taken by considering the views of supportive stakeholders,” said one of the business partners supplying goods and services to the Sterlite company.