ILO: Decent Work Country Programme for India

Contract labourers are now entitled to provident fund, gratuity, bonus in automobile maker Hind Motor. The CITU – affiliated Hooghly Zila Thika Shramik Union, representing 800 odd contract workers has signed a wage agreement with the management in September 1995. This is a significant achievement where the contract labourers have gained several benefits. Not only this, the regular and the contract labourers and their respective unions have joined hands to fight for the rights of the contract labourers. Workers have also got a 33.33 per cent wage hike – from Rs.36 a day at present to Rs.48 a day.

The agreement entitles contract workers to Dearness Allowance at the rate of 1.75 per point and a house rent allowance of five per cent of basic wages from April I, 1995. The emoluments for each workers total Rs.57.45 a day.

The agreement was reached at a meeting between the management, the contract workers union and regular workers.

The unions represented at the talks were Hindustan Motor & Hyderabad Industries Workers` Union, Hind Motor Thikadaris Association and the Hooghly Zila Thika Shramik Union of contract labour.

The salient features of the agreement are:

  • Contract workers will be entitled to Provident Fund on expiry of their contracts.
  • Every worker on contract will be entitled to Gratuity. The mode of payment will be decided jointly and implemented within three months.
  • Contract labour engaged in loading sheet cuttings and removing scrap will continue to get the earlier benefits under the previous wage agreement.
  • Overtime payment will be doubled under the Factories Act, 1948.

The management has also partly conceded the demand to regularise contract labour. 80 labourers on contract have been made permanent against a demand to regularise 150 of them.