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  • Category: Miscellaneous

    Merely adding contract labour will never improve the economy

    It is sheer common sense. Go to any public sector or private bank. Just ask the Bank Manager if he would give a person loan to any casual or contract labour person, even if he is employed with a highly reputed group like the TVS group organization's or Ashok Leyland or the Mahindra Group.

    The Bank Manager would readily explain that such loans are meant only for those on regular rolls and where the company would accept the responsibility of deducting the EMI and giving it to the bank. In fact, there will be an agreement with the company in most cases.So, credit off take for housing loans or for buying consumer durables are largely restricted to Government employees or those in the IT sector

    But there is a catch. I have a car. Why should I buy another car? I have a TV, washing machine, a couple of air-conditioners and what not. Where is my neee for any loan?

    However, we only have contract labour everywhere. Since there is very less retail credit off-take, the banks are flush with cash and interest rates on deposits will be very much less. The senior citizens are at the receiving end and even those with good incomes get very poor returns on fixed deposits, which goes to depress their spending habits.

    The only way to break this cycle is to have more regular jobs and not merely contract and casual jobs. But this is exactly the rule after 2014. We should reverse policies where the capitalists are very happy, but the middle classes are not. And sure enough, the bank managers will obviously have more heart attacks, as they will be under pressure to encourage retail credit.
  • #754186
    If we go back in the history then we would find that just after the independence of our country the Govt started to recruit people on regular basis and a large number of people were inducted in Govt and PSUs. So, many departments had a large number of employees ranging from managers to peons. There was a time when just by pressing a bell a peon came and offered water to the employee. These things continued for quite some time but soon the Govt realised that a large number of employees is not going to increase the productivity as the performance of those people was well below the average level. Then there was a big problem of trade unions and associations going on strike on small issues and hampering the work. So, there came a paradigm shift in the thinking of the Govt and the recruitment was slowed down and more services were diverted in the private domain. Contract labour became a norm of the day. Privatisation fuelled this further and today we have a large number of contractual workers working in so many organisations. If some change is again required then Govt has to change some basic thinking in this regard.
    Knowledge is power.

  • #754189
    It has become cheaper and yet very much in the comfort zone for the companies to have more contract labors who are not eligible to any fringe benefits and yet would get the salaries as agreed upon. There are even chances for the contract employees to loose the job once the contract period is over. There are some organization which has the bulk of contracts with many managements whom the supply labor requirements as sought and they would agreed upon certain rate and pay little lesser to the workers they have been employed. This is the modes operandi of contract labors and they cannot be asking to regulate the employment. But in Telangana the contract labors have been taken into main stream and eligible for all benefits including loans from the cooperative credit society of the employing organisation.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #754202
    Money should be in the rotation. So the bank has to give loans to circulate the money it has received from various people as fixed deposits or other deposits. But to give loans the banks has to see the person who is taking a loan can repay the EMI and for that, they see the employment status of the person. It is a casual worker and a permanent employee the bank will not give a loan. This is the cycle. When money is not rotating, the banks will automatically reduce the interest rates and the senior citizens who depend on the money they receive every month as interest on investments will get a less amount.
    But if there are no casual jobs also, how the people working in these slots will manage their lives? This is the question coming to my mind. Instead of not having any job having a casual worker job is better. I will get some money and my family can make a living. This is another school of thought.
    Different people and different thoughts.

    drrao
    always confident


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