 "Temps make half of auto firms' staff")
Three of the top five companies — Maruti Suzuki, Mahindra & Mahindra and Tata Motors — saw a rise of 5-25 per cent in temporary and contract workers last year, making up nearly half of their personnel strength.
Tata Motors, the country’s biggest automotive company, recorded a 20 per cent jump year-on-year in hiring of temporary workers. At the same time, Tata Motors’ permanent workforce declined by 5.1 per cent due to a voluntary retirement scheme.
Last year, the contract/temporary worker strength in these three companies was 49 per cent, whereas in 2014-15 it stood at just under 45 per cent. Before that, it was less than 40 per cent, highlighting the growing trend to hire temporary labour. Some of these workers were also employed in non-production-related activities like canteen services and logistics.
Last year, the company ramped up production of medium and heavy duty commercial vehicles when fleet operators, especially trucks, began replacing their vehicles. Production was also raised at its newest plant in Gujarat that makes the Tiago hatchback, alongside the Nano.
Contract workers were hired in good numbers at Maruti Suzuki, too, as demand for new models like the Brezza, Baleno and Ciaz outstripped supply. The rise in temporary workers went against an internal policy the market leader adopted to not have contract workers manage production-related activities.
Maruti saw a jump of 25 per cent in contractual labour last financial year as against the year before. Such workers made up 42 per cent of its total workforce of 25,161 last year, compared with 38 per cent in 2014-15, as per its annual report.
R C Bhargava, chairman, Maruti Suzuki said, “The policy is not to increase contract workers in Manesar… We want to keep a little flexibility for any upturn or downturn in production. Gurgaon (plant) is yet to follow that policy”.
The industry’s second largest employer M&M saw a minor increase in both temporary and permanent workers. M&M showed a growth of 5.3 per cent in contract workers, while its permanent workers’ count grew by 1.4 per cent.
The industry hires temporary workers when vehicle demand hits a high gear and the requirement for manpower goes up. However, they are usually the first ones to get relieved in event of a downturn.
The lack of skilled labour force many companies to hire more contract labour who are often paid lower than permanent workers but sometimes end up doing equally-important jobs. However, core manufacturing jobs are mostly by permanent workers.
Sumit Sawhney, head of Renault India’s operations, said, “We invest 7 months in training our regular workers who are highly skilled. The consistency in quality of work required from them cannot be matched by unskilled contract workers.”