I'm seeking the help of HR Experts regarding the problems I'm facing as the Production Manager of one of the top FMCG companies in this country. Here are the details. Please let me know of any suggestions, articles, or documents that could mitigate my problems.
Current Issues Regarding Contract Labour Employment on Production Line in the Plant:
1. The production line consists of two types of labour:
- Permanent Labour (known as Operators) who handle the line and fix it in case it stops. They are responsible for the production of that line and have a high skill level.
- Contract Labour (known as Govt. Trainees or GTs) hired through a collaboration with the government. The contract lasts only for six months. They are paid by the hour, have a very low skill level, and are asked to do simple jobs on the line such as loading/unloading containers, putting filled containers in cartons, placing cartons in the warehouse, dumping talcum powder in the mixer, etc.
2. These contract labourers are a floating population because they are here for only six months and are paid by the hour, meaning they are paid whenever they come. This results in poor discipline among them as they come whenever they wish. Currently, 140 contract labourers are on payroll, but only 90-100 show up regularly, and we are severely understaffed. Absenteeism is a big problem. There are several reasons for absenteeism: some feel they can earn more by working outside than working in the plant in one day, so they don't bother to come. Rs 200 is paid for working one shift of 8 hours.
3. Since we are understaffed in contract labour, we cannot make them work three shifts in a day (8 hours per shift). We need 45 contract labourers on the line, and currently, only 90-100 are available regularly, meaning we have to run two shifts for contract labour of 12 hours each, which includes 4 hours of overtime. Shift timing: 7 am to 7 pm, 7 pm to 7 am. Operators come every day, and we have a sufficient number, so operators work in three shifts.
This method of making contract labour work two shifts with 4 hours of overtime has been done for a while, and now contract labour have developed the habit of expecting overtime pay. The 90-100 contract labourers coming regularly do so because they get Rs 400 instead of Rs 200. (Overtime pay is double the fixed rate.)
Meaning if in the future we ask them to work only for 8 hours, the 90-100 people coming may also stop coming.
4. The problem with using two shifts is that whenever contract labour are absent in large numbers, the line can't run. No manpower. Currently, 45 contract labourers are used on the line with 5 extra people on-call (just in case anyone is absent). But if more than 5 contract labourers are absent, the line can't run, and production is hampered. The situation is even worse in night shifts as a lot of contract labourers leave the lines and go find a place to hide and sleep sometimes.
5. There are many more problems that arise because of using contract labour directly on the line. For example, before putting bottles in the carton, they must do a final check to ensure the cap placement on the bottle is correct, and sometimes they don't check properly.
J&J don't employ contractors for hiring contract labour. They use the collaboration with the government, and so there is no union among these contract labourers. They have made the situation very tough for the production team, and I have been asked to put forward a proposal on how the issues listed above can be tackled.
I need help regarding practical suggestions to mitigate these problems.
So far, I have come up with only one suggestion:
- Maintaining a Discipline Rating for Contract Labour: Based on attendance and work behaviour, each contract labourer will be given a daily rating (1/5 or 4/5) of discipline. If at the end of 7 days in a week, their rating is below 2, then they will be given a first warning. If the following week their rating is still below 2, then they will be fired. HR will maintain this index.
Currently, there is no such measure, and contract labourers who don't come regularly are not usually fired. I believe if this is implemented, we would have only those people on payroll who would want to come regularly.
And then if we have 140 people coming regularly, we can employ a 3-shift schedule for contract labour also.
But there's a problem with that too. If they are asked to work for 8 hours without any overtime, chances are more than 50% of people won't come since I mentioned earlier how they are used to overtime pay. How do I tackle this issue?
If a 3-shift schedule is implemented, then the line won't be stopped due to no manpower since I can stop someone from the previous shift for 4 hours of overtime and ask someone from the next shift to come 4 hours early. This cannot be done with a 2-shift schedule.
Please give me your input and suggestions. And please forward this to the factory HR department asking them for help regarding these problems.
From India, Mumbai
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Current Issues Regarding Contract Labour Employment on Production Line in the Plant:
1. The production line consists of two types of labour:
- Permanent Labour (known as Operators) who handle the line and fix it in case it stops. They are responsible for the production of that line and have a high skill level.
- Contract Labour (known as Govt. Trainees or GTs) hired through a collaboration with the government. The contract lasts only for six months. They are paid by the hour, have a very low skill level, and are asked to do simple jobs on the line such as loading/unloading containers, putting filled containers in cartons, placing cartons in the warehouse, dumping talcum powder in the mixer, etc.
2. These contract labourers are a floating population because they are here for only six months and are paid by the hour, meaning they are paid whenever they come. This results in poor discipline among them as they come whenever they wish. Currently, 140 contract labourers are on payroll, but only 90-100 show up regularly, and we are severely understaffed. Absenteeism is a big problem. There are several reasons for absenteeism: some feel they can earn more by working outside than working in the plant in one day, so they don't bother to come. Rs 200 is paid for working one shift of 8 hours.
3. Since we are understaffed in contract labour, we cannot make them work three shifts in a day (8 hours per shift). We need 45 contract labourers on the line, and currently, only 90-100 are available regularly, meaning we have to run two shifts for contract labour of 12 hours each, which includes 4 hours of overtime. Shift timing: 7 am to 7 pm, 7 pm to 7 am. Operators come every day, and we have a sufficient number, so operators work in three shifts.
This method of making contract labour work two shifts with 4 hours of overtime has been done for a while, and now contract labour have developed the habit of expecting overtime pay. The 90-100 contract labourers coming regularly do so because they get Rs 400 instead of Rs 200. (Overtime pay is double the fixed rate.)
Meaning if in the future we ask them to work only for 8 hours, the 90-100 people coming may also stop coming.
4. The problem with using two shifts is that whenever contract labour are absent in large numbers, the line can't run. No manpower. Currently, 45 contract labourers are used on the line with 5 extra people on-call (just in case anyone is absent). But if more than 5 contract labourers are absent, the line can't run, and production is hampered. The situation is even worse in night shifts as a lot of contract labourers leave the lines and go find a place to hide and sleep sometimes.
5. There are many more problems that arise because of using contract labour directly on the line. For example, before putting bottles in the carton, they must do a final check to ensure the cap placement on the bottle is correct, and sometimes they don't check properly.
J&J don't employ contractors for hiring contract labour. They use the collaboration with the government, and so there is no union among these contract labourers. They have made the situation very tough for the production team, and I have been asked to put forward a proposal on how the issues listed above can be tackled.
I need help regarding practical suggestions to mitigate these problems.
So far, I have come up with only one suggestion:
- Maintaining a Discipline Rating for Contract Labour: Based on attendance and work behaviour, each contract labourer will be given a daily rating (1/5 or 4/5) of discipline. If at the end of 7 days in a week, their rating is below 2, then they will be given a first warning. If the following week their rating is still below 2, then they will be fired. HR will maintain this index.
Currently, there is no such measure, and contract labourers who don't come regularly are not usually fired. I believe if this is implemented, we would have only those people on payroll who would want to come regularly.
And then if we have 140 people coming regularly, we can employ a 3-shift schedule for contract labour also.
But there's a problem with that too. If they are asked to work for 8 hours without any overtime, chances are more than 50% of people won't come since I mentioned earlier how they are used to overtime pay. How do I tackle this issue?
If a 3-shift schedule is implemented, then the line won't be stopped due to no manpower since I can stop someone from the previous shift for 4 hours of overtime and ask someone from the next shift to come 4 hours early. This cannot be done with a 2-shift schedule.
Please give me your input and suggestions. And please forward this to the factory HR department asking them for help regarding these problems.
From India, Mumbai
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As an HR Expert, I recommend the following practical solutions to address the contract labour issues in the FMCG production line:
1. Implement a Performance-Based Incentive System: Introduce a performance-based incentive system for contract labourers to encourage regular attendance and efficient work behavior. Reward those who consistently meet attendance and performance standards to motivate others to follow suit.
2. Enhance Training Programs: Invest in training programs to upskill contract labourers and improve their efficiency on the production line. Providing training on quality checks and procedures can help reduce errors and enhance productivity.
3. Regular Communication and Feedback: Establish regular communication channels to address concerns and provide feedback to contract labourers. Encourage an open-door policy where they can voice their issues and suggestions, fostering a sense of belonging and accountability.
4. Utilize Technology: Implement workforce management systems to track attendance, performance, and productivity of contract labourers. This data can help identify patterns of absenteeism and inefficiencies, enabling proactive measures to address them.
5. Review and Revise Overtime Policies: Revisit the overtime policies and ensure they align with the current operational needs. Consider offering incentives other than monetary rewards for working extra hours to motivate contract labourers without solely relying on overtime pay.
6. Cross-Training and Rotation: Cross-train contract labourers to perform multiple tasks on the production line, allowing for flexibility in shift assignments and reducing dependency on specific individuals. Rotation of duties can also prevent monotony and increase engagement.
By implementing these strategies, you can improve the discipline, efficiency, and overall performance of contract labourers on the production line, leading to enhanced productivity and smoother operations.
From India, Gurugram
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541. Implement a Performance-Based Incentive System: Introduce a performance-based incentive system for contract labourers to encourage regular attendance and efficient work behavior. Reward those who consistently meet attendance and performance standards to motivate others to follow suit.
2. Enhance Training Programs: Invest in training programs to upskill contract labourers and improve their efficiency on the production line. Providing training on quality checks and procedures can help reduce errors and enhance productivity.
3. Regular Communication and Feedback: Establish regular communication channels to address concerns and provide feedback to contract labourers. Encourage an open-door policy where they can voice their issues and suggestions, fostering a sense of belonging and accountability.
4. Utilize Technology: Implement workforce management systems to track attendance, performance, and productivity of contract labourers. This data can help identify patterns of absenteeism and inefficiencies, enabling proactive measures to address them.
5. Review and Revise Overtime Policies: Revisit the overtime policies and ensure they align with the current operational needs. Consider offering incentives other than monetary rewards for working extra hours to motivate contract labourers without solely relying on overtime pay.
6. Cross-Training and Rotation: Cross-train contract labourers to perform multiple tasks on the production line, allowing for flexibility in shift assignments and reducing dependency on specific individuals. Rotation of duties can also prevent monotony and increase engagement.
By implementing these strategies, you can improve the discipline, efficiency, and overall performance of contract labourers on the production line, leading to enhanced productivity and smoother operations.
From India, Gurugram
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