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Managing the contractual workforce(MDP Event)

The word “workforce” is also called as employees or a worker in the layman language. These workforces are the essential requirement in any organization, be it organized or unorganized, to make the factory or industries run. According to the Factories Act of 1948, any industry with ten or more employees working is called organized while the industry with less than ten employees is categorized as an unorganized one. There are further differences amongst the workforce i.e., some are called permanent employees, while many are called contractual employees. The employees who are hired on a regular salary with many allowances, perks, and social securities are permanent employees, and companies have to bear a lot of expenses upon these employees. Some employees are hired on the fixed salary with no further allowances, perks, and social security, and upon whom normally companies do not spend much money on welfare are called as a contractual employee.

So the Increasing competitiveness, along with the evolving application of many newer technologies, companies generally had the tendencies to hire contractual workers to complete their work with limited expenses. As per the statistics of many labour market groups and government associations, there is a rampant high increase in the hiring of contractual labours. According to a PTI report, the share of contract workers in Maruti Suzuki’s total workforce has grown from 32 percent in 2013-14 to 42 percent in 2015-16, and this is a similar case in many government-run organizations like SAIL, Coal India. In Coal India and SAIL itself, there are thousands of contractual workers working with minimal social security and allowances. As per the Factories act 1948, there is a rampant increase of workforce in the organized sector from 7.7 million in 2000-01 to 13.7 million in 2015-16, and more than half of them are hired on a contractual basis. The fundamental problem is not in the increase in the number of hiring them but with the kind of torture and inhumane conditions with which they have to suffer at the workplace is the primary cause of concern.

In Asia Pacific Institute of Management (AIM), New Delhi, the Inland Waterways Authority Of India (Ministry of Shipping, GoI) officials had organised two days management Development Programme (MDP) from 23-24 October 2019. This program was to make the current batch PGDM students aware by the list labour laws and rule and regulation under which the rights of contractual workers are preserved. These all awareness is required by the coming new generation of managers in the workplace, how to manage them or how to protect them from the ill-practices of employers.