According to a press release issued by the two associations, the amendment negates an earlier Supreme Court verdict that medical representatives were not workmen. The amendment was passed despite strong representations made by both industryorgani sations.

In its representation to the state government the industry associations had stated that the amendment "ostensibly offers protection to employees who do not really require it. It would lead to lower productivity, lax discipline and encourage unhealthy labour practices,which in the long run will impact employment potential" The industry feels that the amendment will seriously affect operations of pharmaceutical companies in Maharashtra, and have an adverse impact on its competitive advantage. The press release has also warned that this could compel the pharmaceutical industry to review its investment and expansion plans in the state. The 600 members of the two industry associations account for almost 15 per cent of the Rs 12,000 crore all India turnover.

They hire about 10,000 medical representatives. Pharmaceutical majors based in Maharashtra include Glaxo-Wellcome, Pfizer, Hoechst Marion Roussel, Parke-Davis, Knoll, Novartis and Johnson & Johnson.