Sunil,

Contract Labour is not an organised sector. And in Automobile sector, its major industry leaders manage with contract labour. Issues that can come up are:

1. Supply side issue - Availability of skilled labour which you are looking for.
2. Demand Forcast - Get this from your company, what they are looking for, when & in the expected supply flow on a monthly forcast.
3. Today, since the industry are being supplied with all these people, try contacting your counter parts in your city and check with them who are their suppliers.
4. Take contracts on rolls who meet all legal obligations only.
5. Ensure you have a legal dept to whom the contractor needs to sign off all legal formalities, before he starts the supply. This will ensure on time payment (min wages), PF, Bonus, Overtime payments etc on time.
6. Always have alternate contractors and ensure you have ensure that supply is competively distributed.
7. All payments to be made only through the contractor & he distributes the payment in your premises along with the Finance person to ensure that their are no non-payments.
8. All contract labour will be the responsibility of your company as per the Factories act and any accident or mishap, you are responsible as an employer. So, ensure that you have taken enough safety precautions.
9. These contract labour will keep extending their work hours for over time payment. Ensure that you regulate them with enough replacements on time.

Regards