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DIMENSIONS OF CONTRACT

LABOUR MANAGEMENT

HINDALCO EXPERIENCE
A K Basu
THE DIMENSION
 Upstream Busineses
Bauxite Mines : 70
Alumina Plants : 1000
Smelters & Power : 400

 Downstream Rolling Mills : 230


Total Daily Intake : 1700

 Main Areas of work


Loading and Unloading
Sanitation and Housekeeping
Gardening
Canteen
Security
Colony Maintenance
Small Fabrication And Civil Jobs
Operations Related Work
THE PROBLEMS
 MOST JOBS ARE PERENNIAL
 CANTEEN CONTRACT LABOUR IS LEGALLY
VULNERABLE IN MAHARASHTRA
 MAJORITY OF CONTRACT LABOUR ARE
COVERED BY LONG-TERM SETTLEMENTS
BROKERED BY OUR PERSONNEL MANAGERS
 MOST CONTRACT LABOUR COVERED UNDER
INDAL PROVIDENT FUND
 STOPPAGE OF WORK BY CONTRACT LABOUR
WOULD BRING OUR CHEMICAL AND SMELTERS
PLANTS TO A STOP
 MOST CONTRACT WORK, EVEN FABRICATION,
IS DONE INSIDE THE COMPANY PREMISES
ACTION PLAN - LEGAL

 CONTRACTOR MUST HAVE LICENCE, ESI


CODE NO. AND PF CODE
 ALTERNATIVELY, COVERAGE UNDER
COMPANY PF
 PROPER CONTRACT WITH CONTRACTOR ON
STAMP PAPER
 CONTRACT SHOULD CONTAIN SPECIFIC
PERFORMANCE, PENALTY AND TERMINATION
CLAUSES
Contd.
ACTION PLAN - LEGAL

 CONTRACT TO PUT LIABILITY OF MINIMUM


WAGES PAYMENT, PF DEDUCTION AND ESI
DEDUCTION ON CONTRACTOR, OTHERWISE
PENALTY
 CONVERT LABOUR CONTRACTS, WHEREVER
POSSIBLE TO JOB CONTRACTS
 SPLIT FACTORY AND COLONY INTO
SEPARATE CONTRACTS
 SEGREGATE WORK DONE BY CONTRACT
LABOUR FROM THOSE JOBS DONE BY
PERMANENT LABOUR
ACTION PLAN - ADMINISTRATIVE

 MECHANISE HANDLING TO REDUCE INTAKE


 OUT-SOURCE FABRICATION JOBS OUTSIDE
FACTORY PREMISES
 STRICT CONTROL OF INTAKE THROUGH
 DEPARTMENTAL REQUISITION/ JOB
REQUIREMENT TO BE SIGNED BY HEAD
OF PLANT ONLY
 STRICT GATE CONTROL
 WITHDRAW FROM MENTORING
CONTRACTOR/LABOUR AGREEMENTS
 CALL OPEN TENDERS EVERY 6 MONTHS/
1 YEAR
ACTION PLAN - RATIONALIZATION

 CONTRACTOR TO CONVERT DAILY-RATED

LABOUR TO PIECE-RATED LABOUR

 CONTRACT LABOUR AGREEMENTS TO


INCREASE PIECE RATE NORMS

 PROVIDE MONEY TO CONTRACTOR AS EX-

GRATIA FOR SEPARATION

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