The workers are mainly demanding higher pay and job security, particularly by getting employers to reduce the use of contract labour, who are paid less than permanent employees and can often be fired at will. Those who have jobs feel left out of the growth story because of lagging wages.New Delhi: Labour unrest is on the rise at two centres in India where motorcycles and components are manufactured, underlining the problems Prime Minister Narendra Modi’s government faces in creating new manufacturing jobs that are sustainable and pay attractive wages..6 percent in September from a year ago, data from the Society of Indian Automobile Manufacturers (SIAM) showed on Friday.In Gurugram, on the outskirts of the capital New Delhi, hundreds of workers from companies, including car maker Maruti Suzuki, staged a day-long protest on Oct 7 over demands for job security and higher wages.
A wave of labour stoppages could put additional pressure on the profitability of companies affected at a time when they are already grappling with increasing input costs and uncertain demand.Around the southern Indian city of Chennai, often dubbed the “Detroit of South Asia”, there have been a series of work stoppages at the motorcycle makers, mainly over union recognition, contract labour and wage issues.India’s domestic passenger vehicle sales fell 5.The labour unrest “exposes the vulnerability of the workers,” said K.Workers at several other companies in the area, including makers of auto parts and tyre manufacturers, have protested in recent months against lower wages, and for more secure jobs and the right to unionize.Underlying the militancy is a mixture of pressures facing the workers and their employers, including rising living costs and sluggish sales.R.
The sales were hurt by rising fuel prices and higher interest rates.Contract workers don’t have the same path to the middle class as employees – they are, for example, much less likely to get access to formal credit markets and their purchasing power will therefore be restricted, Sundar said. Shyam Sundar, professor of human resource management at XLRI, one golf umbrella suppliers of India’s top management schools.Motorbike makers, such as Japan’s Yamaha, and India’s Eicher Motors – maker of the iconic Royal Enfield motorcycles – have been hit hard by walkouts, although major carmakers have been largely unscathed.Modi, who has to call elections by May next year, has promised to create new jobs by boosting manufacturing in Asia’s third-largest economy, but has failed to match aspirations despite rapid overall economic growth
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