Temporary workers make up 46% of workforce of India’s MNCs
The India’s inflexible labour laws are being mentioned as the obstacle for industry but the companies have found solution to this problem by hiring contract workers in the large number. The newly available data provides the idea of enlarging the same practice of hiring contract workers.
The data has been gathered from 82 companies that 2.12 million regular employees and 1.08 million contractual employees are working in companies. The sample had a 64 percent capitalization and 46 percent of revenue among all listed companies.
If we have to divide the sample in two categories: services and industry, Contract workers have 46 percent share in the industry and 8.8 percent in the services segment. In services, the sub sectors with comparatively high levels of regular employees are software and financial services. This required special skills for this sector. But in telecom sector 46 percent of contract workers are working.
Mr. Manish Sabharwal, Chairman, Team Lease Pvt Ltd, says that in industry the number of temporary workers is high because of current employment laws.
In the automobile sector the labour disorder is more visible in recent years. The ratio is higher but it is higher energy and utilities (54%) and in cement (52%). In engineering sector L&T skews the total due to its size and the factor that this sectors hires the employees on the basic of projects. Except this fact the sector has 22 percent contract workers but L&T gives the figure of 75 percent contract employees. Sectors like pharmaceuticals and consumer goods have low number of contract employees.
At last, if Indian companies have such high number of contract employees, we can only think how high the level of casualization will be in small organization.
Source: The Live Mint
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