Indian biscuit manufacturer Britannia Industries has confirmed strike action by contract labour has hit production at a factory in Delhi.

The company insisted the strike action was “illegal” and conceded the move has had a “partial impact” on production levels. However, Britannia played down the possibility it would hit supply of its biscuit products in India.

“This illegal strike has a very small impact on the overall business/operation of the company, including the availability of the finished products in the market,” the company said.

According to a report in India’s The Economic Times, the contract workers have launched industrial action to push for higher wages and regularisation of employment. The terms that contract labourers are employed under are governed by the Contract Labour Act in India, which aims to provide manufacturers with a flexible workforce.

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