HMT draws flak for recruiting more youths on contract

With an embargo on recruitment of permanent employees continuing, the HMT Machine Tools, Kalamassery, is empanelling scores of “project associates” on contract for executing its works, much to the chagrin of the labour unions that are crying foul against this “exploitation of educated youth”.

“The unit, the only profit-making sub centre of the government-owned HMT with a good order book, is made to bear the brunt of the cumulative losses made by all other units, as the practice is damaging for the firm in the long run. As for the youth being empanelled, it’s outright exploitation as their pay is a pittance. But youngsters are jumping at the opportunity eyeing the credible industrial experience it offers,” says P. Krishnadas, secretary of the HMT Employees’ Union.

The Kalamassery unit now engages 18 project associates – including engineering graduates, diploma holders and ITI qualified hands – to carry out work on hydraulic systems contracted to it by the LPSC, a unit of the Indian Space Research Organisation (ISRO). Another batch of 12 would be recruited for the same, says C.M. Bidar, general manager of the unit.

‘Healthy order book’

Mr. Bidar says the Department of Heavy Industries cannot allow recruitment of permanent employees as all other units of the HMT are loss-making. “But we have a healthy order book.”

The unit, which has 200 permanent employees and 600 workers on contract, re-employment, project associates and apprentices, has orders worth ₹60 crore for the current financial year. “This apart, we are expecting orders worth ₹45 crore from Bharat Electronics for making directing gears for sonars on naval ships, ₹16 crore from ordnance factories for specialised shell turn machines and ₹30 crore from the Department of Employment and Training in Karnataka for conventional lathes.

“As for the LPSC contract worth ₹3.5 crore, we are to station about 30 workers there for the next two years. We hope to get more work from the LPSC,” Mr. Bidar said.

But the HMT Employees’ Union argues that lack of employment opportunities in the country is being exploited by the Centre and the HMT management to contract skilled youth, including engineering graduates, for cheap labour.

Given the rate of retirement of permanent employees – there were 3,500 employees on its rolls in its heyday – the unit, they allege, is slowly slipping into a coma. “Contract workers come and go, but skilled, trained and experienced manpower is at the core of a heavy industrial unit’s success. That strength is being eroded with no permanent technician replacing retiring workers. The training given to contracted associates also goes waste,” says Mr. Krishnadas, arguing a robust permanent workforce is essential for the survival of the unit.