Married to Exploitation
Contract Workers Find No Brides
We often heard that contract workers did not get a bride. Girls would not want to marry unless a man had a ‘permanent’ job and a home of his own. This, we realized, was indeed a big social issue. A few posts on social media also spoke of this issue.
Arvind Shrouti and I interviewed five contract workers from a European and a Korean Company. And unsurprisingly we discovered many other issues, some of which have been covered in my earlier blog posts, yet the details did not fail to shock us.
We begin here by capturing the ground level realities of the contract workers. The problem of matrimony finds its roots there.
Mahesh (name changed) works in an MNC in manufacturing sector at Pune. His case is representative of all five contract workers. He grew up in the Aundh and after passing ITI in Welding trade, he moved to Pune. His relative provided accommodation for a few months and supported him. After working in a few companies, he got a job in a company which was a supplier to Volkswagen. But Volkswagen has some ‘no production days’ and its supplier company would also close as a result.
He later found a job in a Korean multinational company through a contractor. His salary is Rs 25 thousand per mensem.
This appears to be a good salary prima facie. But the devil is in the details. Mahesh’s employer, the Contractor to the Korean multinational, had structured the salary in an exploitative way. (Later on we discovered that it was the ‘standard’ way in which contractors in Pune had structured the wages of the contract workers.)
The monthly salary of Rs 25000 has a bonus component of Rs 2500; this is also called the ‘Attendance Bonus.’ If the worker remains absent even if for only one day, he loses the entire ‘attendance bonus’ of Rs 2500. And since they are not allowed any sick or casual leave or any other leave (Earned Leave, which they are entitled to as per Factories Act,) a day’s wage is also cut, which means for one day’s absence the worker loses Rs 2500 + One day wages. It works out to be approximately Rs 3000.
Such a punishing disincentive for a leave of absence!
It is common for the contractors to include prorated bonus in monthly wages so that the wages of workers exceed Rs. 21,000 per month. That keeps them outside the coverage of the ESIC Scheme, and the contractor saves paying the Employers’ contribution.
For a worker there is nothing much left in hand to support a family. A group of contract workers rent a room and stay together in a room. They cook their food in the room and share expenses. Textile workers in Mumbai also stayed in small rooms. They slept in shifts (while other room mates worked in shifts) to accommodate all.
About ten years ago I studied how migrant workers lived at Umbergaon. Migrant labour stays in groups of 4 or 5 in very small rooms. The conditions were pitiable. There were instances of sodomy.
This is what poverty and inadequate housing does to the lives of people.
We spoke to the contract workers employed by the Korean MNC, as well as another European MNC. The story is exactly same as if the contractors have decided the terms together.
Very often the contract workers find a room far away from the factory. The travel expenses are prohibitive. The contract workers cannot afford a two-wheeler. Travelling in an auto is also expensive. The Company provides bus service exclusively to the permanent workers. Contract workers obviously are not allowed that privilege.
Contract workers make a deal with the bus driver. It is an underhand deal. The going rate is Rs 700 pm. It is paid to the bus driver. The permanent workers know this ‘arrangement’. Because they work together in the same workplace, the permanent workers ignore it.
Paucity of income makes the contract workers work overtime. They often target 100 hours of overtime. That translates to working 13 days on double shift. If they do it, they can double their income. But it comes with health hazards. (The state-prescribed overtime limits range from 125 to 144 hours in a quarter, while the contract workers spoke to us about overtime work of 100 hours in a month!)
Currently there is enough demand for the products, so it is possible to work extra hours for additional income. With the Iran USA war fallout, we do not know what is in store for them! Nor do they.
The contractor terminates the service of his worker before he completes five years of service. Why? That helps him avoid gratuity payment which becomes due if a contract worker completes five years of work.
And the companies often stipulate that a worker whose services are terminated must not be reemployed. The doors get closed. Thus searching for another job begins. But the practices of contractors are ‘standardized’ so he will not get any better service conditions.
The contract workers are thus exploited, and their living conditions are unimaginably bad. The political leaders who had formed unions for personal gains have deserted the workers. The government’s laws are not implemented under the name of providing ‘business friendly’ atmosphere.
It is against this backdrop we must understand the matrimony problem of the contract workers.
There is another factor which is rapidly impacting the choice of girls. It is not noticed by the people in the cities. The girls want to marry an educated man or one who has stable job (permanent job), preferably a government job, and a home of his own.
While conducting interviews we met a contract worker who was told by his prospective match that she would like to stay with him separately and not with his parents. For those who understand the culture of the small towns and villages this is a radical shift of attitude. She did not marry him when she realized that he neither has a permanent job nor a home of his own.
The education status of girls is rapidly changing. A report mentions that ‘from school corridors to postgraduate lecture halls, girls are not just catching up — they are beginning to outnumber boys (in Maharashtra)’ (See ‘Indian Girls Now Outnumber Boys From School to Post Grad Level. How & When Did This Happen’)
Social media is replete with the stories of how daughters are a burden to the family in our patriarchal society. There are forced marriages, and suicides. Dowry practice continues to be the menace. But in a section of the society, we see a different picture!
During our interviews we were told that a contract worker who could not find a bride, paid dowry (not the other way as is the custom) to a girl’s family from U.P. to marry her.
It is a double whammy for the eligible bachelors! They do not have enough income, they do not have a stable job, and the expectations of girls are rising!
Due to these socio-economic pressures and expectations, a significant number of contract workers remain unmarried even after crossing the age of 30, as they are perceived to lack financial stability, job security, and social status.
What are the issues?
First, we see that no labour leader is championing the cause of contract workers. The current situation cannot be changed with ‘due process of law.’ That means if at all any leader wants to change the scenario, he must adopt extra-legal means! Yes, law is an instrument of change, but it needs to be implemented well. Current labour laws are ignored by the employers with impunity.
Second, persistent exploitation of labour of high degree can only produce unforeseen consequences. A bomb is ticking under the chairs of unscrupulous employers.
Third, there is a possibility of higher crime rate. We have not investigated if there is a link between high crime rate and high exploitative jobs. But will it surprise anyone if such a correlation exists?
Fourth, what kind of society we are creating where workers find it difficult to get married?
Fifth, do employers have policies which govern use of contract labour? Even MNCs seem to be myopic in the implementation of their own policies.
Sixth, as highlighted in the Economic Survey, the manufacturing sector is experiencing a slowdown due to shrinking market demand. One of the major reasons for this decline is the low purchasing power of workers, as a large section of the workforce is inadequately paid. When workers do not earn sufficient wages, their capacity to consume goods and services reduces significantly, which ultimately affects overall demand and adversely impacts the growth of the manufacturing sector.
Will this unrest become uncontrollable? That is anybody’s guess. Till then this exploitation and oppression would continue with impunity.
Is anyone listening?
Vivek S Patwardhan
“What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others.” All matter copyrighted.
Mr V Balasubramaniam commented: ‘Very true on your observations. There is a limit to government interventions and they also come quite late. The riots that happened in Noida last month reflects this. But doesn’t become a movement. Artificially suppressed wage costs through exploitation reduces incentives for promoters/ managers to find innovative ways to improve productivity and keep per piece cost of labor in check. They continue with inefficient methods. I am not sure if a solution is worked by CII/ FICCI/Assocham that asks members to sign a code of conduct in labour practices – minimum sustainable wage, minimum additional perks like transport and canteen food etc to lessen the impact on living costs. In some ways this exploitative practice is leading to shortages of labour. No industry is getting adequate labour when required. Hopefully such shortages will compel increased payments to contact labour over a time.’
Good observational study and well written
However, I wonder, whether the union leadership has absolved itself of its responsibilty. What are they doing? Why did they allow a dual labour regime inside the factory? Labour exploitation did not emerge in a vacuum. It expanded because unions failed in fighting for them. Unions behaved opportunistically. All of them looked the other way.
Actually it is not the absence of union leadership, it is about the collapse of union leadership.
The “extra legal means” may be the consequence but labour gains do not come out of militancy.
The issue about marriage is provocative but what have unions done in maintaining the dignity of contract labour. Zilch and it is declining day by day.
The real truth is that contract labour should organise themselves independently through other institutions like worker cooperatives, NGOs, other related networks, since trade unions have become obsolete.
In fact, the permanent workers and their unions have normalised exploitation by taking symbolic positions.
Nothing can replace the real union leadership and that requires service, sacrifice, gumption and a mission to make a difference.
By penning the above, I am in no way saying that the Managements, governments and others are acting in the interests of the contract labour. They too have turned a blind eye and a deaf ear, and abdicates their responsibilities.
Sad but painful.
Just a few early morning thoughts….
Mr Sunil Sathe commented:
A thought-provoking article. The comparison between contract labour and the changing nature of relationships/marriage highlights a deeper social concern.
In industrial relations also, excessive contractualisation may provide short-term flexibility, but it often dilutes belongingness and loyalty towards the organization.
Perhaps the real challenge before society is balancing rights with responsibilities — whether in employment or in human relationships.
Thanks for sharing.
Great piece, Sir.
the marriage issue is real. Sharing a similar story which I have observed. I know a contract worker. I keep talking to him usually. I got to know that he has not married yet. He is 40+ Reason? Exactly same which you are talking in. last month, after working for 19 years as a contract worker he was hired as a permanent employee here. Now he has started searching for partner. Economically also it is not possible to feed a family of 3 in money you get. That too in areas like Vile Parle. Only reason he could afford living here because his father has a single room in Gandhi Nagar Slum. It is a similar story for couple more. Ones who have family are working overtime or juggling with 2 jobs. I can completely relate to your writing. It is a horrible picture to observe.
Insightful article. What stayed with me most is that the issue no longer seems limited to wages or contract structures — it is about whether workers can realistically build a stable and dignified adult life.
A burning question for me is: Is it possible to push through even 3 immediate changes that bring relief without hurting industrial competitiveness?
For example:
1) guaranteed paid sick leave,
2) transport access equal to permanent workers,
3) prohibition of gratuity-reset terminations before 5 years.
None of these seem revolutionary — they seem foundational to dignity of labour.
Which also raises a larger question: if the right to live with dignity is fundamental, then who is ultimately responsible and accountable for ensuring it is upheld — employers, contractors, policymakers, or society collectively?
Would genuinely love to hear your thoughts on this.
Well articulated Vivek. Neither Political leaders nor the government is seized with the gravity of the situation. Contract workers situation seems to be worse than other low grade gig workers such as drivers, plumbers?
It is a larger desensitisation than the demographic in focus. Administrative achievement comes at the cost of the powerless and marginalised. Beyond the industrial sector, it is likely that service sectors in rural economies, tribal hunter-gatherers and other unorganised trades face unknowns and unnamed struggles. Public monies are increasingly going toward private benefit. https://medium.com/@donthinreddy/roads-built-for-the-few-urban-inequity-284d5d13f03e
Very TrueSir
I am consulting in the space of contract manufacturing, and constantly engage with Contractors and Parent companies to provide good facilities
I have been able to achieve the following in many places
1. Minimum wages
2. Rooms with common kitchen & gas cylinders / wood {now} !!! and basic provisions {but rooms as you described}
3. Transport from place of stay
4. Payment on attendance and if present for 25/ 26 days a month, an additional day’s wages, as attendance bonus.
I felt this is the least I can do for our workmen brothers
I have met contractors who fight for this with the parent companies
It’s OK for the companies to earn an EBITA of 1 % less
Dear Vivek,
Thanks for another important piece that brings out the harsh and invisible realities of contract labour with clarity. I see it as not just the economic exploitation—through wage structuring, denial of benefits, and forced overtime—but the systemic normalization of these practices across employers, a worrying institutional apathy.
The linkage drawn between precarious employment and the social consequences—housing distress, health risks and inability to find a life partner—is rarely acknowledged so candidly.Equally concerning is the silence of stakeholders—Industry, Unions, and Regulators—who have abdicated responsibility in the name of convenience or competitiveness.
Overall, an eye-opener to confront uncomfortable truths about the cost at which Growth and efficiency is often achieved.
The marriage angle makes visible what was already there.
A man who can’t build a life on his income is not just economically precarious. The girls aren’t being unreasonable. They’re reading the situation clearly.
Something else is also happening. When survival becomes individual enough, for long enough, people stop looking out for each other. Unions hollowed out. Permanent workers looking away. Contractors standardising exploitation as if it were just market practice.
Nobody’s villain. Everyone’s just protecting themselves. And somehow that produces the same result as malice.
Thank you for another thought provoking piece sir.
Dear Vivek,
You have excellently brought out the plight of the contract workforce with reference to matrimony.
Congratulate you on your efforts at visiting , collecting and disseminating the information.
Regads,
Dr. Rajen Mehrotra