Workers exposed to accidents in tier III auto component industry

Every year 1,500 contractual workers in Gurgaon-Manesar belt have accidents that lead to loss of fingers or hands

Om Kumar, a 27 year old contract worker in a horn-manufacturing unit in the Gurgaon-Manesar component hub, is no longer allowed to be part of the skilled workforce. Kumar, who hails from Aligarh, accidentally lost his left hand in the press shop last year. He was allowed to rejoin the factory but at a much lower wage than his earlier monthly pay of Rs 9,600. Kumar represents hundreds of contract workers in the tier II and III automobile component manufacturing units, who supply smaller components to tier I manufacturers who make finished products for direct use in vehicles. These components are used in manufacturing gears, steering, and engines and so on.

A study conducted by SafeInIndia and NGO Agrasar has estimated that every year 1,500 contractual workers in the Gurgaon-Manesar belt meet with accidents mostly crush injuries that lead to loss of fingers or hands. SafeInIndia is an initiative to address the issue of crush injuries in the industry. It listed cases of twenty such workers who met with an accident, and only two of them found employment though at a much lower pay.

The study released last week estimates that about 80,000 workers, most of whom are contractual, are employed by these components makers. The belt is home to top automobile manufacturers like Maruti Suzuki, Hero MotoCorp, Honda Motorcycle and Scooter India and a host of component makers. Component makers have over last few years have developed a preference for contractual workers after instances of labour unrest.

These contractual workers in many of Tier II and III units do not enjoy health insurance and other benefits like permanent workers. Most of them are allowed to operate risky machines after a brief induction of few hours. "While laws regarding work place safety, post-accident care and compensation do exist, there is an absence of strong and effective institutional mechanisms to support their implementation", the study said. Prerit Rana, co founder and chief executive officer of Agrasar said in cases of accidents the company's HR department directs the worker to contractor who brings these workers.

Unlike the strong unions of regular workers in the automobile industry, these contractual workers are unorganised and are clueless about dealing with such cases as they have no awareness and access to legal support. Since majority of these contractual workers are migrants, they return permanently to their native place without any compensation. What is worrying is that most of these workers are young and in the age group of mid 20s to 30s and are unable to support their family after such accidents.

Vinnie Mehta, director general of the Automotive Component Manufacturers Association said the instances highlighted by the study are stories from very small, mostly unorganised companies who lack a structure like tier I companies. "Tier III companies are the weakest link in the value chain from every perspective- quality, efficacy and even people. The component industry has its own set of challenges and is mostly left with little bargaining power. Vehicle manufacturers always expect component prices to come down and automobile customers want lower prices. Workplace safety should be made qualifying criteria while procuring components", he said.

Prabhat Agarwal of SafeInIndia said the immediate focus of the management is on increasing productivity and controlling cost. "An accident leads to fall in productivity as the management's attention is diverted to managing the situation. Larger automobile manufacturers and tier I component makers should share their best practices with the tier II and III companies".

 

HIGHLIGHTS:

19 of 20 victims were from tier II and II factories highlighting the lack of safety protocols and infrastructure

16 of 20 workers were not provided any training

15 of 20 victims were below 23 years of age

Only 8 of 20 workers had ESI cards

Cases where employers were supportive the worker received adequate treatment

Source: SafeInIndia-Agrasar Research