Exploitation of Human Rights in Indian Industrial Exploitation of Human Rights in Indian Industrial Exploitation of Human Rights in Indian Industrial Exploitation of Human Rights in Indian Industrial

SectorSectorSectorSector(Automobile Segment)

Dr. K. UmachandranGeneral Manager

Organization Development

NELCAST Ltd.,NELCAST Ltd.,NELCAST Ltd.,NELCAST Ltd.,

University of Bengkulu (Unib), Indonesia, 3rd International Seminar, Regional Network on Poverty Eradication (RENPER),

15-17 October 2012

Kamala et al., Strategies for Enhancing Competitiveness of Indian Auto component Industries ,

Conference on Global Competition & Competitiveness of Indian Corporate , 2007 – IIMK & IIMK & IIMK & IIMK & LLLL

Literature Review

The PROBLEMThe PROBLEMThe PROBLEMThe PROBLEM

?

WINDOW DRESSING

The PROBLEMThe PROBLEMThe PROBLEMThe PROBLEM

Employees don’t know why these are for?

The PROBLEMThe PROBLEMThe PROBLEMThe PROBLEM

When the case is “Resource available in abundance” why is it not used?

The PROBLEMThe PROBLEMThe PROBLEMThe PROBLEM

AUTOMOBILE MAJORS IN CHENNAI REGIONAUTOMOBILE MAJORS IN CHENNAI REGIONAUTOMOBILE MAJORS IN CHENNAI REGIONAUTOMOBILE MAJORS IN CHENNAI REGION

Interesting . . . Let us study

REALITY

Evolved a TOOL to study the Population

To develop a comprehensive scale “CONTRACT WORKMEN CONTRACT WORKMEN CONTRACT WORKMEN CONTRACT WORKMEN

PROFILEPROFILEPROFILEPROFILE” by identifying the factors related to

1. Personal (or) Self and Family

2. Work Related

3. Social Recognition

OBJECTIVE OF THE STUDYOBJECTIVE OF THE STUDYOBJECTIVE OF THE STUDYOBJECTIVE OF THE STUDY

Pilot study Pilot study Pilot study Pilot study

Conducted among the 11% (60) of the total sample (N = 525) of

respondents in the present study.

During the pilot study, the investigator has developed questionnaire

namely CONTRACT WORKMEN PROFILE Scale.

This was further subjected to

1.Factor analysis and

•Reliability measure

•Face and content validity were established

FACTORIAL METHODFACTORIAL METHODFACTORIAL METHODFACTORIAL METHODRaw data 11% study sample (N=60) of 525 was computerized for factor

analysis by the method of Principle Factoring Orthogonal Rotation: Varimax

1.Preparation of the correlation matrix.

2.Extraction of the initial factors the explanation of possible data reduction

and

3.The rotation to a terminal solution the search for simple and interpretable

factors.

DEVELOPMENT OF SCALEDEVELOPMENT OF SCALEDEVELOPMENT OF SCALEDEVELOPMENT OF SCALE

45 items during the pilot study on a sample of 60 respondent data were

subjected to Factor analysis and items were merged with independent

factors namely Personal, Work related and Social Recognition.

Both face and content validity were established.

CONTRACT WORKMEN PROFILE SCALECONTRACT WORKMEN PROFILE SCALECONTRACT WORKMEN PROFILE SCALECONTRACT WORKMEN PROFILE SCALE

Consists of three factors which were labeled according to experts

suggestions. The final form of the scale consists of 30 items, after deleting

15 items which were below the correlation value of 0.50 in factor loading.

The labeled factors were:

Personal – 10 items

Work related - 10 items

Social recognition - 10 items

Reliability - Reliability - Reliability - Reliability - the internal consistency method was adopted which was done

through the factor analysis.

Face and Content validityFace and Content validityFace and Content validityFace and Content validity - the opinion of management specialists were

obtained on labeling these factors.

Main StudyMain StudyMain StudyMain Study•2 Automobile Majors,

•1 Tyre Manufacturing company and

•2 Ancillary companies

The sample of 525 respondents contract Workmen were randomly

selected from these 6 organizations in and around the city of

Chennai.

1. Personal data sheet,

2. Occupational data sheet,

3. Personal Factor questionnaire,

4. Work factor questionnaire and

5. Social Recognition questionnaire.

TOOLS USEDTOOLS USEDTOOLS USEDTOOLS USED

SCORESSCORESSCORESSCORES

Strongly Agree = 5

Agree = 4

Undecided = 3

Disagree = 2

Strongly Disagree = 1

DEMOGRAPHIC DETAILS

ORGANIZATIONAL DETAILS

Gender

Women Women Women Women

•38% of the population - Local neighbourhoods - hired by local contractors

and political big-wigs for their contractual works.

•Women folks work during day-light timings ie., 6.00 a.m to 6.00 p.m.

MenMenMenMen•80% and above - of migratory population.

•Work all three shifts mostly

6.00 a.m to 2.00 p.m; 2.00 p.m to 10.00 p.m; 10.00 to 6.00 p.m.

Eight hours of work is statutory per day within 40 hours of work a week as per

the Factories act.

Age

• 76% is 21 to 30 years of age.

• Number of People “less than 20 years” is less because the Indian Indian Indian Indian

factories act factories act factories act factories act specifies more than 18 years as employment age in

industries.

• Penal action on employers who are violating the age clause.

• More than 30 years is not welcomed as they would not be fast and agile

in working and physical movements.

Education

• 63% BASIC School education upto Pre-Graduate or Diploma level.

• This population can THINK and WORK. Auto Majors prefer contract

workmen to be with a minimum of Higher Secondary qualification.

• The School leaving certificate has the Date of Birth recorded which is a

proof of age to substantiate those Factory and Labour authorities on the

stipulated age for employment in factories.

Marital status

• More than 70% is not married. Comparatively lesser commitments than

married people.

• To work in Night shifts, Extended shifts as the urgency requires.

• Electrical Power problem is prevalent in India, many companies require

their employees to reschedule their work hours during the Power available

time.

• Automobile companies have more load of work during the second and

fourth quarter of the financial years (April-June; July-Sep; Oct-Dec; Jan-

Mar) and hence overtime working and schedule commitments are rampant.

Nativity

• The Rural migration to cities and then to any place of work has made

people mobile in search of economic gains.

• 50% is neither urban nor rural; it wants to enjoy the benefits of Urban and

the security of rural life.

• The contract workmen are mostly pooled from these semi-rural areas.

• BUS transport for Women and dropped back at home after work. The

companies organize this transport or pay back to the contractor for the cost

incurred. Society welcomes this aspect of employability generation and is

willing to send the rural women to work in factories.

Family Compulsion

• Less than 5% do not have any family compulsions to go to work and earn.

• 75% agrees that they are committed to economically gratify the family

compulsions and hence come to work.

• The women folks wages go as a support whereas the men are primary

bread winners of the family. There is also a compulsion of women folks

who aren’t married as they have to save “Groom Money” for getting a

better suitor to marry.

Contract work

• More than 60% engaged by the Original Equipment Manufacturer.

• An approximate saving of about 40 to 60% on the Cost to the Company of

a Regular employee.

• Maximize TRAINEE TRAINEE TRAINEE TRAINEE population (paid Stipend and time bound evaluation

for progression) and equate it with Contract workmen Contract workmen Contract workmen Contract workmen (not liable under the

principal employer) so that the number of Regular or Confirmed Regular or Confirmed Regular or Confirmed Regular or Confirmed (legally

bound to protect employment and welfare) workmen can be less.

Residing Facility

• 60% plus is migrated from other places.

• Employee available “On Call” anytime to work and flexible to compensate

for lapses and Managerial mishaps.

• Contractor’s use this facility as a trump card for luring more people from

the nearby states projecting FREE STAY (save 25% on earnings).

• Continuous presence in work place leads misbehavior and indiscipline (to

ease themselves).

Work Hardship

• 39% says that the work is easy, the employment of contract workmen is to

take care of the NON CORE activities and hazardous work nature inbuilt in

the process.

• 50% and above is always employed in areas of dust, heat and unbearable

work natures such as furnaces, heat treatment, material loading etc.,

• Certain areas of work are not acceptable to the Trade Unions are passed

on to the contract.

• The trade Unions keep this information as a trump card / threaten to buy

back in favor for their demands.

Working Hours per day

• 54% claim that they work only 8 hours.

(misleading data 284 – 198 Women = 86 Men ie.,16% of total population

who are statutorily in compliance to the HOURS of WORK as specified

by the Factories act.)

• The remaining are made to work more than the stipulated hours.

Wage Payment type

• 74% is on Daily wages. So the organization pays only when they engage

the contract workmen on work.

• The liability to hold on the Human resources as and when required on a

timely basis reduces the risk of Hire and Retain on the Managerial cadres

of Personnel department.

Payment for Extra hours of Work

• 54% of the population is working more than the stipulated time frame

at work.

• They are not compensated as per statutory obligations. Workmen who

work more than 40 hours a week are to be compensated with twice the

hourly rate of pay for every extra hour worked.

• Most of the organizations give only single hour equated payment.

• Some Organizations give eatables as “Take-aways” after work.

• Some other organizations link the wage to direct output, so that “earn

your wage as you deliver” or payment linked to delivery is created.

Highly motivated individuals and teams are suited for this kind of work

structures.

• Economically seeing the lower price paid for the utilization of the resources

is opted in the business world to achieve its objective. MAN or HUMAN

RESOURCE is one more subjectively viewed.

• When cannot be obtained for its nearness to the source of operation the

MIGRATORY options are well used for exponential gains.

• To evade the LAW agencies the CONTRACT method was used from

various under developed industrial belts luring them of money.

• Bihar, Orissa, West Bengal contribute to an exodus 40% plus of migratory

labour to the Automobile sector. The North east States such as Assam send

people for Security work in these organizations.

• Automobile Manufacturing industries started using the supply of migratory

workforce through the contract route.

EXPLOITATION OF RESOURCESEXPLOITATION OF RESOURCESEXPLOITATION OF RESOURCESEXPLOITATION OF RESOURCES

• Political uncertainties in Orissa and West Bengal made the closure of MOU’s

for startup of industries, resulted in people movement towards industrialized

states such as TamilNadu, Maharashtra, Gujarat and NCR Region etc,.

• The Contract Manpower suppliers started luring these people and supplied

them to industries.

• These people where almost like captives, away from their families and

single; they started spending more time at work which was not at all possible

by the local people as they were compelled to spend time with the families.

• In addition to the extra hours at work the migratory workmen are also flexible

and nearer to the workplace; they stay inside the factory premises itself.

Hence at anytime they are called upon to work.

• These flexibilities made the shop floor supervisor to depend on them heavily.

However the flexibilities were also taken for granted.

• Extra time needs to be compensated with double wage for a regularized

employee whereas these contract workmen are paid normal wage on a

extended period of work. Normal working hours is 8 hours per day, the contract

workmen do work for a minimum of 10 to 12 hours at the normal daily wage.

• Leave were not regularly granted for the people; and whenever they wish to go

to their native places, the contractors would withhold some part of the wage so

that the migratory workers guarantee their return to work after leave.

• People who don’t return back lose their money.

• In addition the Contractors do not comply to the statutory authorities on labour

welfare funds such as Provident Fund etc,.

• Plight is there on individuals who die during accidents at work or in the notional

extension of work area. The death benefits don’t reach their dependents in full.

• These workmen are devoid of Uniforms at work, safety, and basic

welfare such as canteen etc., are not provided to them which is a

mandatory for the confirmed workmen.

• Hurdles such as language, culture, food habits, religious practices etc.,

are at a gross violation.

• The place where they are made to stay is uninhabitable in most cases

and prone to disease and danger.

• Many an occasion of fire, theft , in-fights and murder do happen for

which the principal employer would turn a blind eye and ask the

contractor to handle the issue

WHY IT DOESNWHY IT DOESNWHY IT DOESNWHY IT DOESN’’’’T GET EXPOSEDT GET EXPOSEDT GET EXPOSEDT GET EXPOSED

• Employment opportunity is at scarce.

• The family compulsions on “MONEY”.

• “Educated” cannot be at home; be a burden to the house hold; or to their

parents.

• Raising the issue will make the person to lose more than to gain any.

• Weak community completely under debt from the contractor who otherwise

is a “LOAN SHARK” at the native place.

• Aged population with “unsatisfied urges” common to those in that

population.

• They do not have any “Vision” and highly uncertain on the future.

• Politicians and Government officials benefit out of this situation.

• The Organization, Contractor benefits while the contract workmen lose.

Clarifications if any . . .

Thank You