Migration Of Casual Labour-Impact On Businesses, Way Forward

The Covid-19 pandemic has resulted in mass exodus of the casual labours from their current place of work to their home states. This would result in a severe shortage of casual labour, in the months to come,that are required to maintain the operations of Pharma and Chemical plants in particular and other businesses in general. Hence the question arises as to how to maintain the operations of the plants which are labour intensive in the Indian scenario. It is believed that this problem of acute shortage of labours could persist for the coming 2 to 3 months and this will be the most crucial time when the businesses would like to ramp up the production after facing the lockdown. Here are some of the suggestions.

Although it may not be possible to reduce the deployment of number of casual labours altogether/ completely, it is always possible to start thinking in that direction and reduce the number of deployment. For e.g. if the earlier deployment was say 100, it is possible that with some intelligent efforts and firm decisions the deployment may come down to say 80, that is the reduction of 20%. And the efforts /steps taken right now will prove to be handy even after the labour shortage issue eases out, that is the method of operation can be continued in future.

Before the casual labour rationalization is carried out it is always better to do the context setting and explain and take the ownership and concurrence of all the stakeholders to ensure the success of the exercise/activity.

1. Review the complete histogram of the deployment of labour of a production site department/function wise and classify them into the categories into the tasks which can be automated and which cannot, which the labour used to carry out. The list of department functions may include product wise plants (and the annexed temporary semi-finished /in process warehouse), QA and QC function, Stores and warehouses (both raw material, and finished), administration (for housekeeping), EHS (Environment health and Safety), Effluent treatment plant, MEE (Multi effect evaporators), utilities like Boiler, DM plant, Coal and ash handling plant, horticulture and gardening etc.

2. Out of the functions mentioned above it is always possible to straight away outsource some of the functions which will reduce the deployment of the labour such as house-keeping, horticulture, operations like coal and ash handling plant if they were carried out by casual labour. This will shift the onus of managing these activities which are labour intensive on the outsourced agency. The participation and concurrence of the concerned departments here is a must to ensure that the changes/reduction in the deployment of the labour is carried out in the right earnest.

3. The automation of the tasks or activities also depends upon whether they are directly related to production or the activities on the sides which assist in the production in terms of loading and unloading, and movement within the plant of raw material, packing material, catalyst etc. for which the deployment is being made.

4. If the labour is being deployed earlier for moving the material (raw material, semi finished and finished material from point A to point B) the same can be carried out by hiring a forklift. The hiring charges of forklift are in the range of about Rs 80,000/- per month for 12 hours including the charges of diesel and driver. However it is relevant here to note that the hiring charges of the forklift are costly and hence a list of all the activities which are required to be carried out by the forklift are prepared in advance. A back of the envelop calculation can also be made by making a comparison in terms of the reduction in number of labours at the rate of about Rs 750 per 12 hours which now is being proposed to be carried out by the forklift. If the engagement of the forklift is not sufficient then it can be hired on 4 hours per day basis. The movement limitations of the proposed forklift within the plant can be immediately assessed and suitable approaches and ramps can be immediately made/provided as a part of the civil activity.

5. If the raw material or catalyst is in a dry powder form coming in bags, then more number of labour is required to unload the trucks rather than unloading the trucks by forklifts which can do the unloading at a much faster rate. In this case it will be required to ask the supplier to supply the bags on wooden/plastic pallets. These plastic pallets can be returned to the supplier as a part of reverse supply chain. In the same way loading activity can also be assessed and improvised.

6. If the labour is being used to lift the material for charging on higher floors in the plant , if the material lift is not available then hydraulic ramp can be used at least to raise the material to the desired level for charging. Suitable approaches can be provided to provide clear access once the material is elevated to the desired level.

7. If possible the final packing activity, that is packing of the finished product (powder) can be outsourced as a part of 3PL, third party logistics activity. If the finished product powder is being transferred to the packing warehouse, check the possibility of using a powder pump.

8. If gravity feed mechanisms are not availablethen as far as possible at all the places gravity feed mechanisms can be put in place to do the filling activity.

9. Even in the non-productive areas like gardening and housekeeping (both the plant areas and the surrounding areas) mechanization to be used as far as possible.

10. It has been observed that in many of the plant functions, the casual labours are used for very minimalistic tasks and the full day engagement of the labour also may not be available. The plant chemist/ assistants can be encouraged to do certain tasks themselves (such as getting the in process samples from plant) rather than using the casuals for such activities.

11. If the expense on the deployment of the casual labour is significant it is always better to take the help of productivity councils to do the time and motion study to bring the improvement in the labour productivity, and eliminate the labour wastages.

For further consulting on the topic and other allied activities please contact :- Girish Nanoti @ nanotigirish@gmail.com

For the supply of casual labour and other material handling equipment rentals please contact Mr. Amit Khandelwal @ appukh28@gmail.com

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