The Telugu Film Chamber of Commerce (TFCC) has issued a statement opposing the Telugu Film Industry Employees’ Federation’s demand for a 30% wage hike, which has already led to a shooting halt across the industry on August 4. TFCC passed a 'unanimous resolution' to allow producers to hire non-union workers.

In its press note, the Chamber said, “The Telugu film industry in Telangana and Andhra Pradesh is already in a very difficult situation. At such a time, when discussions are underway for an amicable solution under the guidance of the Honourable Labour Commissioner, the Federation has chosen to defy this process.” The Chamber argued that the hike is ‘unaffordable to small producers’ and added that 'every small producer is against this hike, which is not within their means.'

Citing the Labour Commissioner’s clarification, TFCC noted that under the Minimum Wages Act, producers have the right to employ workers as long as they are paid minimum wages. It also referred to a Competition Commission of India (CCI) order that restrained federations from imposing anti-competitive practices.

The Telugu Film Chamber emphasised that producers can now work with skilled workers irrespective of union affiliation, saying, “There is no film industry without producers. Trade unions should recognise that the well-being of producers is vital for the survival of our industry.”

The statement further said, “The cost of living is lower in Hyderabad than in other metropolitan cities. Moreover, we are paying higher wages to workers here than in other film industries.” The chamber also criticised unions for 'demanding lakhs of rupees for membership,' arguing that such practices restrict skilled newcomers from entering the industry.

Producer SKN backed the council’s decision on social media, writing, “Sensational decision. Why does one have to pay lakhs for union membership? This is restricting many skilled people. Anyone can work if they have skill and interest.”

The wage hike standoff remains unresolved as talks with the Labour Commissioner continue. But with the decision to move ahead with skilled workers without union membership is a new approach.