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LABOUR SUPPLY CHAIN AND
VARIABILITY DURINGYEAR
Divyesh Patel
MBA CEQS A G1
A13567116009
LABOUR IN CONSTRUCTION INDUSTRY
 Construction sector is projected to grow to INR 11,954 billion by
2020 and expected to contribute 8.4% to GDP *
 More than 80% of the employment in Building and Construction
sector is minimally skilled workforce **
 9.8 million construction workers of the total 32 million workers
are registered in the country **
• Data from Goldman Sachs (http://www.deccanherald.com/content/84443/india-add-110m-people-global.html)
• https://www.slideshare.net/KUMARSUPRATIKRoy/skill-development-initiative-for-construction-workers
LABOUR SUPPLY CHAIN
Labour Market/
Labour Union
Subcontractor Labour
Civil Engineering
Firms/Professional
Service Firms
SUPPLY OF LABORS
 Temporary labour
 generally up to 12 months
 Asking a third-party vendor to give you 10-50 people to manage a job.
 applicable for blue-collar workers.
 No expertise required
 Contracted labour
 Expertise & skill is required
 goes beyond 12 months
 applicable for white-collar workers.
 Engage a third-party vendor
CNTD…..
Service contract
 contract with a third-party provider
 greater than or equal to two years.
 scope of work becomes the key deliverable here
Part-time labor
 the requirement is generally dynamic regarding time
 six hours of labour per week rather than eight hours every day.
MSP MODELVS. DIRECT HIRING
An MSP model
streamlines workforce
management, ensures
that results are
delivered and makes
the task of governance
easier.
plan to hire the workers
on your own (direct
hiring)
EVALUATING LOCAL LABORVS. FOREIGN
LABOR
 Recruitment costs (can be higher when you want to recruit from foreign
countries)
 Travel costs (when you want to hire foreign labor)
 Levies (many countries impose a foreign worker levy on the company for any
foreign workers you want to employ)
 Worker turnover (foreign workers are likelier to stay in the same production
line, whereas local labor may find it easier to switch to other production lines as
they are not bound by permit)
 Recruitment time (it takes more time to get foreign labor because of
administrative formalities that need to be completed with the government)
MAJOR ISSUES FACED BY LABOUR IN
CONSTRUCTION
 Forced Labour ( such as Child labour)
 Less SKILL Development Programme
 Unorganised sector
 Exploitation/Discrimination
 Social Status
 Job insecurity
HOWTO RETAINTHE LABORS ON SITE ?
 Accommodation & Food
 Medical/Insurance
 Implementing of BOCW (Building and other construction worker) act and
Cess
 Funding
 Training
 Health & safety
 Other Infrastructure facilities for Labor family (ex. School, playground)
LABOR WELLFARE & INTIATIVES
 Labor protection
 BOCWWelfare Board
 BOCW Act & Cess
 Interstate MigrantWorkmen Act
 MinimumWages Act
REFERENCES
 http://blog.bhsolutions.com/index.php/2012/10/plan-monitor-measure-supply-chain-labor-
management/
 http://www.eiris.org/files/research%20publications/CoreLabourStandardsReportDec09.pdf
 http://scdigest.com/assets/reps/Exptert-Insights-RedPrairie_05-04-08.cfm
 https://www.arcadis.com/media/D/B/3/%7BDB3A15FD-23D0-4C95-9578-
BBE1611D8A0E%7D9308_People%20and%20Money%20Report_WEB_LR.pdf
 https://pdfs.semanticscholar.org/d792/ccdefc4ba571e6d23fcfe097a01927b93edf.pdf
 https://www.fairwork.gov.au/find-help-for/contracting-labour-and-supply-chains
 http://spendmatters.com/2017/08/15/10-things-procurement-professionals-must-consider-
hiring-labor-organization/
 http://www.prsindia.org/uploads/media/Construction%20workers/SCR-
%20Building%20and%20Other%20Construction%20%20Laws.pdf
 https://en.wikipedia.org/wiki/Minimum_Wages_Act_1948
 https://en.wikipedia.org/wiki/Interstate_Migrant_Workmen_Act_1979

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LABOUR SUPPLY CHAIN AND VARIABILITY DURING YEAR

  • 1. LABOUR SUPPLY CHAIN AND VARIABILITY DURINGYEAR Divyesh Patel MBA CEQS A G1 A13567116009
  • 2. LABOUR IN CONSTRUCTION INDUSTRY  Construction sector is projected to grow to INR 11,954 billion by 2020 and expected to contribute 8.4% to GDP *  More than 80% of the employment in Building and Construction sector is minimally skilled workforce **  9.8 million construction workers of the total 32 million workers are registered in the country ** • Data from Goldman Sachs (http://www.deccanherald.com/content/84443/india-add-110m-people-global.html) • https://www.slideshare.net/KUMARSUPRATIKRoy/skill-development-initiative-for-construction-workers
  • 3. LABOUR SUPPLY CHAIN Labour Market/ Labour Union Subcontractor Labour Civil Engineering Firms/Professional Service Firms
  • 4. SUPPLY OF LABORS  Temporary labour  generally up to 12 months  Asking a third-party vendor to give you 10-50 people to manage a job.  applicable for blue-collar workers.  No expertise required  Contracted labour  Expertise & skill is required  goes beyond 12 months  applicable for white-collar workers.  Engage a third-party vendor
  • 5. CNTD….. Service contract  contract with a third-party provider  greater than or equal to two years.  scope of work becomes the key deliverable here Part-time labor  the requirement is generally dynamic regarding time  six hours of labour per week rather than eight hours every day.
  • 6. MSP MODELVS. DIRECT HIRING An MSP model streamlines workforce management, ensures that results are delivered and makes the task of governance easier. plan to hire the workers on your own (direct hiring)
  • 7. EVALUATING LOCAL LABORVS. FOREIGN LABOR  Recruitment costs (can be higher when you want to recruit from foreign countries)  Travel costs (when you want to hire foreign labor)  Levies (many countries impose a foreign worker levy on the company for any foreign workers you want to employ)  Worker turnover (foreign workers are likelier to stay in the same production line, whereas local labor may find it easier to switch to other production lines as they are not bound by permit)  Recruitment time (it takes more time to get foreign labor because of administrative formalities that need to be completed with the government)
  • 8. MAJOR ISSUES FACED BY LABOUR IN CONSTRUCTION  Forced Labour ( such as Child labour)  Less SKILL Development Programme  Unorganised sector  Exploitation/Discrimination  Social Status  Job insecurity
  • 9. HOWTO RETAINTHE LABORS ON SITE ?  Accommodation & Food  Medical/Insurance  Implementing of BOCW (Building and other construction worker) act and Cess  Funding  Training  Health & safety  Other Infrastructure facilities for Labor family (ex. School, playground)
  • 10. LABOR WELLFARE & INTIATIVES  Labor protection  BOCWWelfare Board  BOCW Act & Cess  Interstate MigrantWorkmen Act  MinimumWages Act
  • 11.
  • 12. REFERENCES  http://blog.bhsolutions.com/index.php/2012/10/plan-monitor-measure-supply-chain-labor- management/  http://www.eiris.org/files/research%20publications/CoreLabourStandardsReportDec09.pdf  http://scdigest.com/assets/reps/Exptert-Insights-RedPrairie_05-04-08.cfm  https://www.arcadis.com/media/D/B/3/%7BDB3A15FD-23D0-4C95-9578- BBE1611D8A0E%7D9308_People%20and%20Money%20Report_WEB_LR.pdf  https://pdfs.semanticscholar.org/d792/ccdefc4ba571e6d23fcfe097a01927b93edf.pdf  https://www.fairwork.gov.au/find-help-for/contracting-labour-and-supply-chains  http://spendmatters.com/2017/08/15/10-things-procurement-professionals-must-consider- hiring-labor-organization/  http://www.prsindia.org/uploads/media/Construction%20workers/SCR- %20Building%20and%20Other%20Construction%20%20Laws.pdf