Stir exposes hiring system loopholes
NOIDA, April 17 -- A government warning to labour contractors amid wage hike protests in Noida has put recruitment practices in factories under scrutiny.
On Tuesday, the district administration said contractors would be "held accountable for any disruptive or damaging behaviour by workers associated with them".
"Their licences can be cancelled and they may be blacklisted," said district magistrate Medha Roopam.
While laws such as the Contract Labour (Regulation and Abolition) Act, 1970, and the Employees' Compensation Act, 1923 mandate registration, wage compliance and worker safeguards, conversations with contractors and workers suggest uneven implementation on the ground, blurring accountability.
In Noida's industrial belt, a large share of the workforce is hired through contractors rather than directly by firms, particularly in sectors of auto components, garments and electronics.
"Our role is mainly to bring in labour and get the work done," said a contractor associated with hiring in Phase 2.
Recruitment is often conducted through village outreach in states such as Uttar Pradesh, Bihar and West Bengal. "Workers usually join in groups, and those already employed often bring in others through personal networks," said a contractor associated with the auto industry in Ecotech-3.
Wages, contractors said, are paid directly by companies. "Contractors arrange the workforce and ensure the work is completed," one contractor said. They also stressed that pay is not discretionary. "We cannot decide wages on our own. Whatever the government notifies, we have to follow," said another contractor.
Contractors typically earn through a service charge of 3-5% paid by companies. Attendance and records are maintained by employers, with workers issued ID cards and registered during onboarding. Some contractors maintained that licensed operators comply with statutory provisions such as EPF and ESIC.
Workers, however, pointed to inconsistencies. "A lot of us don't have any written contract. I was hired through a local contact and get paid on a monthly basis directly into my bank account, but there's no formal appointment letter or job security," said a worker in Noida's industrial area, requesting anonymity.
Another worker said, "Payment and work conditions depend on the company. There is no uniform structure."
When asked about the salary revisions, worker Tula Ram said, "How can we believe that factory owners will increase our wages? There should be a respectable increase, and factory owners should paste the revised salary outside their gates."
HT reached out to multiple companies and union representatives for comments. However, responses from industry players remained limited.
In a statement released on Monday, Samvardhana Motherson International Ltd, which saw violent protests at its site in Phase-2. said it is aligned with applicable labour laws and industry practices, and is reviewing implications of the recently announced wage revision.
District magistrate Medha Roopam said the administration is monitoring the situation. "Contractors and employers are both accountable under the law. Any violation of labour norms will invite strict action," she said...
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