The Hindu Business Line : 60-70% industrial workers in Bengal, Gujarat are contract labour

New Delhi, July 21 In West Bengal and Gujarat, 60-70 per cent of the workforce in manufacturing industries has been found to be contract labour, which is thrice the official estimate.

Moreover, minimum wage and other contract labour laws were widely found violated.

According to a research conducted by the Institute of Economic Growth (IEG) for the international research body, Improving Institutions for Pro-poor Growth (IPPG), many workers had no specific working hours or medical benefits, very little earned leave and few safety precautions for hazardous work.

Dr Dibyendu Maiti, who led the IEG research team, says, “India’s Annual Survey of Industries, the official record of industrial statistics, puts the share of contract labour in organised manufacturing at 15-26 per cent across these States. We found the share to be much higher in our sample States. This may be because we undertook extensive fieldwork. Most official estimates of contract labour are based on secondary data, where it is likely that contract labour is under-reported by employers.”

Lack of ESI cover

In Gujarat none of the contract workers surveyed had Employee’s State Insurance (ESI), while in West Bengal, one in four workers received the benefit.

Contract labour regulations were not effective even in West Bengal, where such workers are largely recruited and controlled via trade unions.

Also, workers in West Bengal were less likely to be paid the minimum wage than in Gujarat.

“Contract labour regulation exists and should be enforced effectively. Our study suggests the establishment of a vigilance committee, involving representatives from the Labour Department and the workers’ community, to improve governance and transparency,” said Dr Maiti.

According to IPPG Joint Director, Prof Kunal Sen, effective political action is needed to ensure economic growth is more inclusive.

“Since Gujarat and West Bengal are both heavily industrialised, and, therefore, representative of manufacturing across India, this study has significant implications nationwide.

It also suggests that India’s economic success is not improving the lives of contract and informal workers, who form the largest section of the economy,” he said.

More Stories on : Labour Reforms | Gujarat | West Bengal

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