The document discusses the exploitation of human rights among contract workers in the automobile industry in India. It notes that contract workers, who make up around 60% of the workforce, are paid less than regular employees and often work longer hours without proper compensation or benefits. Many contract workers are migrants from other states who live in poor conditions and are vulnerable to exploitation by contractors who withhold wages and fail to provide legally required protections. While this allows companies to have flexible labor at low costs, it represents a violation of workers' rights and risks their health, safety, and well-being for the economic benefit of companies and contractors.

1. Exploitation of Human Rights in Indian IndustrialExploitation of Human Rights in Indian IndustrialExploitation of Human Rights in Indian IndustrialExploitation of Human Rights in Indian Industrial
SectorSectorSectorSector
(Automobile Segment)
Dr. K. Umachandran
General 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

2. 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
?

3. WINDOW DRESSING
The PROBLEMThe PROBLEMThe PROBLEMThe PROBLEM
Employees don’t know why these are
for?

4. The PROBLEMThe PROBLEMThe PROBLEMThe PROBLEM

5. When the case is
“Resource available in
abundance” why is it not used?
The PROBLEMThe PROBLEMThe PROBLEMThe PROBLEM

6. AUTOMOBILE MAJORS IN CHENNAI REGIONAUTOMOBILE MAJORS IN CHENNAI REGIONAUTOMOBILE MAJORS IN CHENNAI REGIONAUTOMOBILE MAJORS IN CHENNAI REGION
Interesting . . . Let us
study
REALITY

7. Evolved a TOOL to study the
Population

13. To develop a comprehensive scale “CONTRACT WORKMENCONTRACT WORKMENCONTRACT WORKMENCONTRACT 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

14. Pilot studyPilot studyPilot studyPilot 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

15. FACTORIAL METHODFACTORIAL METHODFACTORIAL METHODFACTORIAL METHOD
Raw 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.

16. 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.

17. 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.

18. 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

19. DEMOGRAPHIC
DETAILS

20. ORGANIZATIONAL
DETAILS

21. Gender
WomenWomenWomenWomen
•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.

22. Age
• 76% is 21 to 30 years of age.
• Number of People “less than 20 years” is less because the IndianIndianIndianIndian
factories actfactories actfactories actfactories 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.

23. 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.

24. 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.

25. 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.

26. 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.

27. 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 TRAINEETRAINEETRAINEETRAINEE population (paid Stipend and time bound evaluation
for progression) and equate it with Contract workmenContract workmenContract workmenContract workmen (not liable under the
principal employer) so that the number of Regular or ConfirmedRegular or ConfirmedRegular or ConfirmedRegular or Confirmed (legally
bound to protect employment and welfare) workmen can be less.

28. 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).

29. 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.

30. 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.

31. 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.

32. 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.

33. • 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

34. • 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.

35. • 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.

36. • 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

37. 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.

38. Clarifications if
any . . .
Thank You