Telugu Film Chamber rejects Federation’s wage hike move, defends producers’ hiring rights

Hyderabad: In a sharp rebuttal to the unilateral decision made by the Film Federation, the Telugu Film Chamber of Commerce (TFCC) has opposed the recent wage hike announcement and reaffirmed the producers’ right to hire skilled workers outside union purview.

The chamber has expressed deep concern over the Federation’s approach, stating it undermines ongoing efforts for a mutually agreeable resolution.

Unilateral wage hike amid ongoing talks

While discussions were underway under the guidance of the Labour Commissioner, the Film Federation issued a circular announcing a 30 per cent wage hike effective from August 4.

According to the circular, only those workers who receive a written confirmation from producers routed through the Federation will be allowed to work.

“This move is not only unilateral but also disrespectful to the conciliatory process led by the Labour Commissioner. It weakens the spirit of fair negotiation,” said TFCC honorary secretary KL Damodar Prasad.

Small producers say hike is unsustainable

The chamber stressed that the steep wage hike is unviable for small and independent producers across Telangana and Andhra Pradesh. Many of them have expressed strong opposition, stating that the financial burden would cripple low and mid-budget productions.

“The majority of producers cannot absorb this hike. The Labour Commissioner has clarified that producers are legally entitled to hire any worker willing to work at minimum wages,” the Chamber noted.

CCI backs producers’ freedom to hire

Supporting this stand, the chamber cited an order from the Competition Commission of India (CCI), which upheld the producers’ autonomy and struck down restrictive practices by unions. The CCI directed that no clauses that obstruct fair competition or force producers to hire only union-recommended personnel be enforced.

Higher wages already being paid in Telugu states

The Chamber pointed out that despite the relatively lower cost of living in Telugu-speaking states, workers and technicians here are already paid more than their counterparts in other metro-based film industries.

“Our producers are paying above-industry-standard wages. The demand for further hikes is unreasonable, especially under current economic conditions,” it stated.

Resolution passed: Skill over membership

In response, the Chamber passed a unanimous resolution declaring that producers are free to hire any skilled worker, regardless of union membership, as long as the worker agrees to the proposed wage. The resolution also condemned the practice of unions allegedly demanding exorbitant membership fees from newcomers.

“Talent should not be blocked by financial or institutional barriers. Producers are ready to employ skilled individuals even if they are not affiliated with any union,” the statement said.

No entry fee for aspiring workers

The Chamber assured that newcomers need not pay lakhs of rupees in union membership fees to find employment. It is committed to a merit-based system where skill is the sole requirement for job opportunities.

Industry survival hinges on producer well-being

Reiterating the vital role of producers in the film ecosystem, the Chamber urged unions to recognise that without producers, the industry cannot survive.

“We hope that all stakeholders realise that a thriving producer base is essential for the long-term health of Telugu cinema,” said Damodar Prasad.