All associations representing manufacturers and exporters in the knitwear sector in Tiruppur, Tamil Nadu, have come together to form a joint committee to negotiate a new wage agreement with trade unions.

The decision follows the expiry of the previous four-year wage pact, which ended in September 2025.

The knitwear hub, often referred to as the “Knitwear Capital of India”, sustains nearly 22,500 companies and provides employment to about 10 lakh workers, including a large number of migrant labourers.

Traditionally, all manufacturers’ associations in the region jointly negotiate a collective wage agreement with trade unions once every four years to ensure uniformity across the industry. With the previous agreement expiring, trade unions had been pressing for the immediate commencement of talks to revise wages and benefits. Responding to this, representatives from six major industry associations met earlier this week and unanimously decided to establish a joint committee to handle all discussions and negotiations related to the new pact.

The newly formed committee will include administrators from key associations such as the Tiruppur Exporters’ Association (TEA) and the South India Hosiery Manufacturers’ Association (SIHMA), among others.

The panel is expected to hold its first round of talks with trade unions on November 20. Officials said the new agreement would be finalised within two months, with elections to fill the remaining positions on the committee to be completed shortly.

Meanwhile, trade unions are preparing detailed proposals seeking significant increases in wages and allowances, citing inflation and rising living costs. They have demanded that both skilled and unskilled workers receive proportionate hikes, with revisions to time-based and piece-rate pay structures.

In addition to higher basic wages, the unions are also pushing for enhanced benefits such as increased travel and tiffin allowances, better housing and educational support, and full implementation of statutory employee welfare schemes like the Employees’ State Insurance (ESI) and Provident Fund (PF).

Industry sources indicate that the negotiations are expected to be intense, as manufacturers are balancing global market competitiveness with rising domestic labour costs. However, both sides have expressed optimism that a mutually beneficial agreement can be reached before the end of the year, ensuring stability in one of India’s most vital export-oriented industries.