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Ours is a typical manufacturing sector. We are into fabrication works and we will be in need of production helpers in a huge numbers. We pay minimum wages, provide canteen facility, double pay for OT works, PF, Esi etc,. But we are facing problem of attrition. All helpers are through labour contractors. New joinee is not sure of coming tomorrow. We get engineers but not helpers .
I just want to know how the helpers on contract are being managed in other manufacturing compnies.
Pl give inputs....

From India, Bangalore

I am a Final year MBA student based in chennai and my summer internship was at Flextronics and my research project is now being done in Sargam Diecastings Pvt ltd, like your company both of the above organisations are typical manufacturing companies but their magnitude of productions vary as Flextronics is a huge concern with presence in over 30 countries and the latter is a medium sized concern with presence in chennai.

Both these organisations face the same problem and the primary reason which everyone feel is that the minimum wages which is paid could be easily earned outside without any hardships.

Flextronics engages 4 labour contract organisations which bring labourers daily as per their requirements since on an average 30 - 40 workers do not turn up for work and this results in loss of productivity and a lack in quality of work.

They try addressing this issue by pressurizing the contract agencies to recruit only those with the attitude to stay long and also to clearly explain them about the working conditions.

At present am into research on CONTRACT LABOUR ATTRITION at Sargam Diecastings. Give me your mail id and i ll send my thesis once it is finished.



Management student


From India, Madras
Here in India, we are having more manpower resource. Majority are illiterates. If they request immediately in more or less wages they can get the work in anywhere in India. For them the skill level is nowhere concerned.

As they are not struggling to get the job, they are unable to recognise the worth of the job.

Once Akbar and Birbal went on rounds that time Akbar seen a shocking act by a begger. He was cleaning his shoes by the Silk Cloth. Akbar asked Birbal, how it can be? Birbal explained to that that the Begger got the silk cloth on free of cost whereas he purchased the shoe. So for him the shoe is costlier than the silk cloth.

Here also the same thing. Once they get it without any struggle they are unable to recognise the value of the job. That is the reason of Attrition.

In some cases the Contractors who are engaging are not at all taking care of the workmen. Here the contractors are paying money to their home and bringing them to workspot. So, the contractors are in a position to make them to work. When the workers feel that the contractors will suffer the financial loss if they did'nt work, then the workmen are using it as the trump card against the contractors.

These are all happened due to illiteracy, as they are illiterates the contractors cannot make any contract. Eventhough he obtains his LTI on stamp paper if the workmen illiterate tells in the court that in the stamp paper he gave Rs.1000 for which he obtained thumb impression, and now he is insisting me to work under him as bonded labour, then what will be condition of the contractor. Do you think the media will analyse the truth in this case?, Can you imagine the situation of the contractor?

That's the reason the workmen under contractor's roll are not coming regularly and if they come also they will not perform. Here only two things can work on is motivation by fear and positive motivation and nothing else.

These motivation will also work only in long run and it will not make any immediate effect.

The second thing is in their mind the worker must have the pride that they work in good company which will take of them for their entire life.

From India, Kumbakonam
Dear Vatsa,
Think of measures for improving employee morale..put up proposals to make your jobs more attractive.And this minimum wages always will not be sufficient to live a happy life. He always look for highly paid wages. Do not think that minimum wages is a best pay, start think about fair wages/ living wages...
PT Ramesan

From India, Tiruppur
Dear Mr. PT Ramesan

First of all I would like to tell you one thing. The government is paying good amount only. In between the mediators (Contractors) are not making the correct wages. That's the reason for high attrition.

Nowadays government is giving assurance on 180 days work per year scheme, rural employment work for food like that government is initiating so many scheme.

Do you think the rates fixed by the government is reaching to the worker.

It is Not at all. Government officials are taking fifty percent (really sorry to say the truth) and balance amount is shared between workmen and contractor. So you can think how much will reach the hands of worker.

Govt is fixing the rate as per the cost of living index and the prevailing inflation.

If you make the minimum wages will also serve the purpose

We here are paying the minimum wages and 15% profit for the contractors

Do you think it is less for the livelihood of the contractors.

This attrition is mainly due to illiteracy and less motivation of employees

From India, Kumbakonam
Please let me know wheres ur factory situated I can help you to with some worth contractors in your area
From India, Pune
The contractor should be a strong man and self disciplined. Then the workers don't dare to leave the jobs. We have around 890 workers with 3 different manufactruing cos.( motsly textile/Engg) at Nagpur and none of the worker dare to leave the job without our consent.
From India, Nagpur
Hi, Please identify, whether the real reason for quitting the job is wages or any other ? such as work environment, harassment from seniors etc.
From India, Pune
What I found that these labour class people are only interested in the amt. which they are going to get in the end of the month.
What you need to do in my point of view:
1. motivation always matter. it may be +ve or -ve.
2. communicate them the benifits of PF and ESI
3. try to communicate them that they people are important for the company. mean to say try to develope a feeling of attachment with the company.
4. tell them that how you are different from others.
5. Also tell them that they people are parmanent employee of the company.
I am also facing the same problem and find that it can be the best solution.
Best of Luck...
Hoping, it will be benificial for you!

From India, Ambala
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