Facing an acute labour shortage, Indian companies are setting up hostel and health facilities and are offering insurance cover to their blue-collar workers in their plant/construction sites so that the workers can follow the social distancing protocol following the Corona pandemic outbreak. The return of the workers is important for companies to bring back the production on track which fell to record lows in April and May.

CEOs of real estate sector, consumer products, automobiles, construction and textile sector said they are expecting their workers to re-join work in the next 45-60 days which will help them to ramp up production from July onwards. “Labour is one of the biggest problems faced by our vendors and, as a result, our supply chain is getting impacted. If our vendors don’t produce, we also cannot produce as each component is needed to assemble a car,” said R C Bhargava, Chairman of India’s largest passenger car maker, Maruti Suzuki India Ltd.

SN Subrahmanyan, MD&CEO of L&T, said its labour force was down to 70,000 in May, as the workers wanted to go home. "In the last 15 days or so, we brought the workforce back to 120,000 levels and every day we are adding 2,500-3,000 labourers to the force," he said. The company as also posted people from the organisation and other senior officials at multiple locations including Ranchi, Howrah, Darbangha to get labour back by giving incentives.

"Many of them know L&T provides good labour camps, transportation and other facilities. The psychology of fear is acting as a bit of a hindrance and we need to overcome that," said he. The company has made videos, apps and taken other measures to show case what they are offering in terms of security features. Subrahmanyan is hopeful to have his workforce back to 230,000 in the next 35-40 days. "We will have to put in double shift, we will have to find out how to do more work with less people," he said.

Some consumer prodycts companies such as Dabur, Parle Products and PepsiCo have turned to local people at some plants in the absence of migrant labour. Dabur, for instance, has transportation service for workers to and from its 11 manufacturing sites. Housing has been provided for some workers near manufacturing plants. "In addition, Dabur is also providing medical cover to all employees on its rolls, so that they can feel protected in the event of a health concern, says Mohit Malhotra, chief executive officer, Dabur India.

Most companies from Nestle to Marico to Hindustan Unilever have also extended health benefits to workers on the factory floor in the last two months. Companies like Parle Products resorted to using local labourers wherever it was facing any shortage. “Things have started improving after May 20. Labourers are coming back by themselves because of the social security schemes and as such we aren’t really facing any problem,” Mayank Shah, category head at Parle Products said.

CEOs of real estate companies are making special efforts to get their labour to work sites. “Our workers already have separate facilities to house the labourers and we follow some of the best practices within the real estate industry. Going forward, we intend to improve the living conditions of these labourers significantly,” said Vikas Oberoi, Chairman of Oberoi Realty.

Kamal Khetan, CMD of Suntech Realty, said the company usually employs aroynd 2,000 workers at its plant sites and, of this, around 800 have left for home from Mumbai. “Our labour contractors are talking to our workers who left for home and we expect them to be back within 30 to 45 days,” said he.

CEOs of textile sector said post Covid, they are fast localising their labour. Sivaramakrishnan Ganapathi, Managing Director of India’s largest apparel exporter, Gokaldas Exports said the company is not dependent on migrant worker. “Migrant workers need hostel facilities to stay, and when they go to their home town for some function, they don't come back for a month. We have focused on people who live in and around the factory. To that extent, we are local labour dependent,” said he.

The company, which employs 26,000 people, is working with the Karnataka government for passes to bring them back to Bengaluru. “We are getting around 40-45 per cent attendance at present. Once the caps are lifted, we will struggle to get the workers unless and until the transportation systems are in place,” said he.

The company’s performance is closely dependent on the recovery of its key customers in North America and Europe. An early recovery will minimise the impact in the near future.

Auto maker, Daimler India is also gradually ramping up operations in line with government guidelines and market demand. "During the lockdown, DICV ensured all employees, including line workers, received their full salaries. Thanks to this and our comprehensive health and safety support, most of our work force remained in Tamil Nadu. For the few that had to leave the state, we have offered full transportation support for returning employees,” a company spokesperson said.

QUOTE BOX:

“Labour is one of the biggest problem faced by our vendors and, as a result, our supply chain is getting impacted."

-RC Bhargava, Chairman, Maruti Suzuki

"In the last 15 days or so, we brought the work force back to 1,20,000 levels and every day we are adding 2,500-3,000 labourers to the force.

-SN Subrahmanyan, MD & CEO of L&T

Dabur is providing medical cover to all employees on its rolls, so that they can feel protected in the event of a health concern.

-Mohit Malhotra, CEO, Dabur India.

Our contractors follow some of the best practices within the real estate industry in housing. Going forward, we intend to improve the living conditions of these labourers significantly.

-Vikas Oberoi, CMD, Oberoi Realty