Contract Labour-Business Manager Magazine

Dear Friends,

Accept or not, good or bad, like or hate, the fact remains that in today’s business scenario to survive cut throat competition, cost reduction on all fronts is the mantra and in this process contract labour system is to stay as it has become necessary. Some may call it social evilbut the positivity of this system is huge generation of employment.

No accurate data exists on how many contract workers are employed by the Indian Industry and Govt. but the labour ministry estimates that this segment makeup nearly 28% of India’s 459 million work force responsible for industrial growth.

Different surveys reveal that Govt. owned PSUs and other departments are the biggest contract labour employers in the country who are supposed to be model employers but could not become as they too are not able to ensure that contract labour get their all due from contractors.

Labour Unions strongly oppose contract labour employment because neither this segment get same benefits as of regular employees nor have any right to job security. Employers prefer this employment mode because of flexibility and rigidity of Indian Labour Regulations making exit almost impossible.

There are strong chances that if employers do not give contract labour their due in terms ofworking conditions  and wages, it will be a trigger point of IR crisis in future. Employers should not give this issue in plate to Trade Unions for agitation, for which they always look at.

BUSINESS MANAGER cover feature of Jan. 2010 is centered around this sensitive issue. HR professionals have to take a call to ensure that contract labour forming a large part of work force are treated well with dignity to avoid industrial disturbances.