CHAPTER IV

SOCIO-ECONOMIC CONDITIONS OF CONTRACT LABOURERS

4.1 Introduction

4.2 Demographic Variables of the Contract Labourers

4.3 Income of Contract Labourers

4.4 Expenditure Pattern of Contract Labourers

4.5 Socio-Economic Status of Contract Labourers

4.5.1 Gender and Income Level of the Contract Labourers

4.5.2 Organisation Type and Income Level of the Labourers

4.5.3 Age and Level of Income of the Contract Labourers

4.5.4 Types of work and Income Level of the Labourers

4.5.5 Education and Income Level of the Labourers

4.5.6 Community and Income Level of the Labourers

4.5.7 Total Work Experience

4.5.8 Total Work Experience and Income Level of the Labourers

4.5.9 Work Experience in Present Company and Income Level of the Laboureres

4.5.10 Working Hours per Day of Labourers with Organisation

4.5.11 Working Hours/Day and Income Level of the Labourers

4.5.12 Getting Wage in Time

4.5.13 Mode of Recruitment

4.5.14 Saving Pattern of Contract Labourers

4.5.15 Saving Pattern of Labourers by Organisation

4.5.16 Age and Saving Pattern

4.5.17 Family Type and Saving Pattern

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 4.5.18 Community and Saving Pattern of Labourers

4.5.19 Borrowing Pattern of Contract Labourers

4.5.20 Borrowing Pattern of Labourers by Organisation

4.5.21 Borrowing Pattern of Respondent by Age

4.5.22 Borrowing Pattern of Labourers by Family Type

4.5.23 Borrowing Pattern by Community

4.6 Prime Factors Influencing on Persistence of the Contract Labour

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 CHAPTER IV
SOCIO-ECONOMIC CONDITIONS OF CONTRACT LABOURERS
4.1 INTRODUCTION
Casual labourers contribute majority of the work force in India. V.V Giri

National Labourer Institute in a study on contract labourer estimated that there is total

of 3.6 crores of contract labourers in India. They are the prominent work force in all

types of sectors including the service sector. Telecommunication is one among the

most important and fast growing service sector in India. It plays a vital role in the

socio economic development, and helps to narrow down the rural- urban digital divide

by providing job opportunity in all parts of the country. The employers prefer

contract labour to meet the global competition and to retain them to reduce cost. The

employment conditions of contract labour are not similar to that of regular workmen.

The contract labour system by its formation removes the principal employer from the

responsibility of an employer in many counts and become easily manageable. So the

telecom sector engages more contract labourers for all kind of works, though the work

is perennial in nature. The employees also accept for contract basis of work due to

some persistence factors such as easy availability of the job, lower education level of

the labourers and poverty which influence them to work for the available job, though

the wage is lesser than what the labourers will get periodically, and flexible nature of

work. This chapter analyses the demographic and socio economic status of the

contract labourers and prime factors which influence on persistence of the labourers

engaged on contract basis in this industry.

4.2 DEMOGRAPHIC VARIABLES OF THE CONTRACT LABOURERS

The demographic variables such as types of organization, gender, age, marital

status, income, education, religion, work type and community of contract labourers

are presented in the Table No.4.1.

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 TABLE 4.1
DEMOGRAPHIC VARIABLES OF THE CONTRACT LABOURERS
Variables Particulars No.of respondents Percentage
Name of the Public sector 220 56.0
organization Private sector 173 44.0
Male 290 73.8
Gender
Female 103 26.2
Up to 25 years 90 22.9
26-35 years 182 46.3
Age
36-45 years 85 21.6
Above 45 years 36 9.2
Married 272 69.2
Marital status Unmarried 107 27.2
Separated 14 3.6
Joint family 178 45.3
Family type Nuclear family 185 47.1
Independent 30 7.6
Skilled 77 19.6
Work type Semi skilled 188 47.8
Unskilled 128 32.6
3001-5000 143 36.4
Level of Income Rs 5001-7000 158 40.2
Above 7000 92 23.4
Illiterate 28 7.1
Elementary 46 11.8
ESLC 38 9.7
Education level SSLC 106 27.0
Higher Secondary 101 25.6
Graduate 63 16.0
Others 11 2.8
Hindu 351 89.3
Christian 29 7.3
Religion
Muslim 12 3.1
Others 1 0.3
SC/ST 161 41.0
Community OBC 143 36.4
Others 89 22.6

70
 The public and private sector employers are engaging contract labourers for all

types of work. Table 4.1 shows that the public sector uses more contract labourers

than the private sector to compete the global market. Due to the globalisation, the

public sector is shrinking the regular employment and uses more contract labourers.

The employers are engaging male and female labourers through contract

system for various works in the organisation. Table 4.1 reveals that the male

labourers are more among the total contract labourers in Telecom services.

Approximately 74 per cent of the male labourers are engaged in the works which

involve more physical labour like digging, trenching and cable maintenance,

marketing and handling the electronic equipments.

The contract labour system has existed for many years in all industries. This

study reveals that 69.2 per cent labourers are in the age group of up to 35 years. After

completion of minimum education the young labourers join the work which is

available to them and continue in the same job with the hope of getting regularisation

in the public sector. The private sector also prefers the young labourers in order to

ensure the physical and mental strength of the workforce.

The contract labourers are generally migrants. In order to have economic and

social support they have married at an early age and have raised their own family.

There are 69.21 per cent labourers married and 27.23 per cent labourers are unmarried

and 14 labourers (3.56%) are separated or living independently. 69.21 per cent of the

labourers support their family as contract labourers with less salary and without job

security.

The study has found that 47.1 per cent of the labourers have Nuclear Family

since they are migrants. The labourers having Joint family closely follows second

level as 45.3 per cent. This study has found that the old joint family system is broken

71
by the labourers coming from the rural areas. But some time they take their family

with them and carry the responsibility. The contribution of the other members of the

Joint Family helps the labourer to maintain the reasonable living standard even though

they earn less.

This study has found that the labourers are engaged through the contractors

and are on job contracts of unskilled, semi-skilled and skilled types. The Public sector

engages more number of labourers through the contractors. The private sector engages

the labour and on job contracts. It covers both the indoor and outdoor labour. 19.6 per

cent of the labourers are employed for skilled type of work such as computer

operators, accountant, supervisors, and maintenance of electronic equipments in the

exchange. 47.8 per cent of the labourers are employed for semiskilled, and 32.6 per

cent of the labourers are employed for unskilled work such as manual labour,

sweepers, housekeepers, attendees are termed as unskilled.

Income is the most vital indicator of socio-economic status of the labourers. In

order to measure the standard of living of contract labourers, the study attempts to

analyse the income pattern. From the study it is found that 40.2 per cent labourers are

having monthly income of Rs.5001 to 7000, 36.4 per cent are having monthly

income of Rs.3001 to 5001 and 23.4 per cent labourers are having monthly income

of above Rs.7000.

This study has found the labourers belonging to different levels of educational

qualification. There are only 28 illiterate labourers among the total sample. About

48.4 per cent of the labourers have completed their basic education level which

consists of elementary, ESLC, and SSLC. The level of poverty forces them to become

contract labourers even after completing the minimum qualification. Religion and

community plays an important role in the socio-cultural and demographic features of

72
contract labourers. Constituting the largest segment of the population the study has

found that 351 labourers (89.3%) are Hindus, 29 labourers (7.3%) are Christians, 12

labourers (3.1%) are Muslims and the study has found only 1 Sikh.

The contract labourers come from a rural background and want to come out

from their traditional occupations or agriculture become unavailable. They want to

upgrade their social standing in the community so they accept the available job. The

study has found 41 per cent labourers are belonging to SC/ST community, 36.4 per

cent labourers are belonging to OBC community and 22.6 per cent labourers are

belonging to other communities. The study has found that the labourers are from

deprived class, who do not have a decent living and belong to SC/ST category. They

do unskilled jobs like digging, trenching and housekeeping.

4.3 INCOME OF CONTRACT LABOURERS

Welfare society is based on the economic conditions of the labourers. The

economic status of any social group is determined by the amount of income,

expenditure, saving and borrowing which will show his/her actual position and

standard of living. Table 4.1 showed the income level of the contract labourers.

The income earned from the telecom sector (wage/salary) is the prime source

of income of the labourers. The income groups are divided into three levels. The study

has found that in public sector the labourers are getting income on the fixed basis that

is per day Rs.236 (Rs5001-Rs7000) for all types of job. That is they are in the,

middle level which is equivalent to minimum wage prescribed by the State

Government. About 73.6 per cent of the labourers are getting the state prescribed

minimum wages. As per this study the average monthly income is Rs.7442.75

(average is taken from the income of the individul).

73
4.4 EXPENDITURE PATTERN OF CONTRACT LABOURERS

This study analyses the average expenditure of the labourers and compared

with the average income. Table 4.2 shows the average income spent by the labourers

per month for their livelihood.

TABLE 4.2
MONTHLY EXPENDITURE PATTERN OF CONTRACT LABOURERS
Items Average Amount(Rs.) Percentage
Food 2674.56 28.38
Rent 3019.39 32.04
Clothing 758.70 08.05
Medicine 576.40 06.12
Fuel 780.31 08.27
Other items 1615.52 17.14
Total 9424.87 100.00

Table 4.2 shows that the contract labourers spent major part (77.56%) of

their income on food, rent and other items. Most of the labourers use public transport,

occasionally spends money for clothes and for medicines; they prefer to utilise the

Government sponsored health schemes and the government hospitals.

The average total expenditure 9424.87 exceeds the average income

Rs.7442.75. So the labourers have to manage the excess amount from other sources

of income by working part time or by doing some petty business. If they do not have

any subsidiary employment, they have to borrow money to meet their monthly

expenditure.

74
4.5 SOCIO-ECONOMIC STATUS OF CONTRACT WORKERS

Income is a crucial factor in determining the economic status of the contract

labourers. As a contract labour work is not perennial in nature, the labourers work in

a contract basis with some fixed salary without any additional benefits.

This study finds the socio-economic status of the workers in association with

income and the other independent factors such as age, gender, organisation type, work

type, education level, community, total work experience, work experience in the

present company, and working hours per day by using the two way table. It analyses

the significant difference of the income and other variables using chi-square test. It

also finds the significant association of the labourers saving and borrowing pattern

with age, orgnisation type, family type and community of labourers using Chi square

test.

4.5.1 GENDER AND INCOME LEVEL OF THE CONTRACT LABOURERS

There is a disparity in wages among the genders is present in spite of the

similarity in the work they do. Table 4.3 shows the degree of association between

gender and their level of income. Low level income refers that the income of the

labourers up to Rs.5000, middle level means Rs.5000-Rs.7000 and High level means

income of the labourers above Rs.7000..

TABLE 4.3
GENDER AND INCOME LEVEL
Income level
Sl. No. Gender Total
Low Medium High
88 133 69
1 Male 290
(30.3) (45.9) (23.8)
56 24 23
2 Female 103
(54.4) (23.3) (22.3)
3 Total 144 157 92 393

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 Table 4.3 shows that 23.8 per cent of the male labourers and 22.3 per cent of

female labourers come under the category of high level income group. In the case of

medium level income group 45.9 per cent are male while 23.3 per cent are female. As

for as the low level income group is concerned, 54.4 per cent of the workers are

female, while 30.3 per cent of the labourers are male.

In order to find the relationship between gender of the respondents and their

level of income, the following hypothesis is framed and tested with the help of Chi-

square test. The detailed results of the test are shown in Table 4.4.

HYPOTHESIS

(H0): There is no significant difference between genders of the respondents and their

level of income.

TABLE 4.4
GENDER AND LEVEL OF INCOME
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig(p). H0

1 Gender 1 2 21.726 0.000 Reject

Table 4.4 reveals that p value is less than 0.05 and the result is significant at

5% level. Hence, the null hypothesis (Ho) is rejected and it is proved that There is a

significant difference between genders of the respondents and their level of income.

It shows that there is discrimination in the income of the genders though their work is

same in nature. Male labours are getting more income than the female.

4.5.2 ORGANISATION TYPE AND INCOME LEVEL OF THE LABOURERS

Both the private and public sector organisations are using contract labourers

for the same kind of work, the income level of the labourers differ. Table 4.5 shows

76
the degree of association between organisation of the respondents and their level of

income.

TABLE 4.5
ORGANISATION TYPE AND INCOME LEVEL

Sl. Income level

Type of organisation Total
No Low Medium High
34 49 90
1 Private 173
(19.7) (28.3) (52.0)
110 108 2
2 Public 220
(50.0) (49.1) (0.9)
3 Total 144 157 92 393

Table 4.5 shows that 52 per cent of the private sector labourers and not even 1

per cent of public sector labourers come under the category of high level income

group. In the case of medium level income group 28.3 per cent are private sector

labourers while 49.1 per cent are public sector. As for as the low level income group

is concerned, 19.7 per cent of the labourers are working in private sector, while 50.0

per cent of the labourers are in public sector.

In order to find the relationship between organisation type of the respondents

and their level income, the following hypothesis was framed and tested with the help

of chi-square test. The detailed results of the test are shown in Table 4.6.

HYPOTHESIS

(H0): There is no significant difference between organisation type of the respondents

and their level of income.

TABLE 4.6
ORGANISATION TYPE AND LEVEL OF INCOME
(CHI SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Organisation type 2 142.880 0.000 Reject

77
 Table 4.6 reveals that p value is less than 0.05 and the result is significant at

5%level. Hence, the null hypothesis (Ho) is rejected and it is proved that There is a

significant difference between organisation type of the respondents and their level of

income. The labourers of private sector are getting more income than the public

sector.

4.5.3 AGE AND LEVEL OF INCOME OF THE CONTRACT LABOURERS

All age group of labourers are working as the contract labourers. Some

labourers are working more than 8 years as a contract labourer. With a view to find

the degree of association between age of the respondents and their level of income, a

two-way table was prepared and is shown in Table 4.7.

TABLE 4.7
AGE AND INCOME LEVEL
Income level
Sl. No Age Total
Low Medium High
27 23 40
1 Below 25 years 90
(30.0) (25.6) (44.4)
55 97 30
2 26 35 years 182
(30.2) (53.3) (16.5)
41 28 16
3 36-45 years 85
(48.2) (32.9) (18.8)
21 9 6
4 Above 45 years 36
(58.3) (25.0) (16.7)
5 Total 144 157 92 393

Table 4.7 highlights that the percentage of high level of income of the

labourers is highest (44.0%) among the respondents having below 25 years age group

and the same is the lowest (16.5%) among the respondents of above 25-36 years age

group. The percentage of medium level of income of the labourers is the higher

(53.3%) among the respondents having 26-35 years age group and lesser (25.0%)

among the respondents having above 45 years age group. On the other hand, the

78
percentage of low level income of the labourers is the higher (58.3%) among the old

(above 45 years), age group of respondents and significantly less (30.0%) among the

respondents below 25 years age group.

In order to find the relationship between ages of the respondents and their

income level, the following hypothesis was framed and tested with the help of chi-

square test. The detailed results of the test are shown in Table 4.8.

HYPOTHESIS

(H0): There is no significant relationship between age of the labourers and their level

of income.

TABLE 4.8
AGE AND LEVEL OF INCOME
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Age 6 48.919 0.000 Reject

Table 4.8 reveals that p value is less than 0.05 and the result is significant at

5% level. Hence, the null hypothesis (Ho) is rejected and it is proved that There is a

significant relationship between age of the respondents and their level of income.

The young labourers of the age group of up to 25 and 26-35 are getting more income

than the aged labourers.

4.5.4 TYPES OF WORK AND INCOME LEVEL OF THE LABOURERS

The contract labourers belong to the rural back ground and want to come out

from their traditional occupations. Their skill level is less and the labourers learn the

work and become semi skilled labourers. With a view to find the degree of association

between type of work of the respondents and their level of income, a two-way table

was prepared and is shown in Table 4.9.

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 TABLE 4.9
TYPES OF WORK AND INCOME LEVEL

Income level
Sl.No work type Total
Low Medium High
7 9 61
1 Skilled 77
(9.1) (11.7) (79.2)
51 108 29
2 Semiskilled 188
(27.1) (57.4) (15.4)
86 40 2
3 Unskilled 128
(67.2) (31.3) (1.6)
4 Total 144 157 92 393

Table 4.9 highlights that 79.2 per cent of the skilled labourers, 15.4 per cent of

semi skilled labourers and 1.6 per cent of unskilled labourers come under the category

of high level income group. In the case of medium level income group 11.7 per cent

are skilled, 57.4 per cent of the labourers are semi skilled while 31.3 per cent are

unskilled. As for the low income group is concerned, 9.1 per cent of the labourers are

skilled, 27.1 per cent of the labourers are semi skilled, while 67.2 per cent of the

labourers are unskilled.

In order to find the relationship between work type of the respondents and

their level income, the following hypothesis is framed and tested with the help of chi-

square test. The detailed results of the test are shown in the following Table 4.10.

HYPOTHESIS

(H0): There is no significant difference between work type of the respondents and

their level of income.

80
 TABLE 4.10
TYPES OF WORK AND LEVEL OF INCOME
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Work type 4 219.090 0.000 Reject

Table 4.10 reveals that p value is less than 0.05 and the result is significant at

5% level. Hence, the null hypothesis (Ho) is rejected and it is proved that There is a

significant difference between type of work of the respondents and their level of

income. Skilled workers are getting more income than the others.

4.5.5 EDUCATION AND INCOME LEVEL OF THE LABOURERS

This study has found only 16.03 per cent of the workers are graduates. Other

labourers are having less education qualification or without any education

qualification, they are working as contract labourers. With a view to find the degree of

association between education of the respondents and their level of income, a two-

way table was prepared and is shown in the following Table 4.11.

81
 TABLE 4.11
EDUCATION AND INCOME LEVEL
Income level
Sl. No Education Total
Low Medium High
10 16 2
1 Illiterate 28
(35.7) (57.1) (7.1)
22 24 0
2 Elementary 46
(47.8) (52.2) (0.0)
20 18 0
3 Higher elementary 38
(52.6) (47.4) (0.0)
54 46 6
4 Secondary 106
(50.9) (43.4) (5.7)
32 43 26
5 Higher secondary 101
(31.7) (42.6) (25.7)
3 7 53
6 Graduate 63
(27.3) (11.1) (84.1)
3 3 5
7 Others 11
(27.3) (27.3) (45.5)
8 Total 144 157 92 393

Table 4.11 highlights that the percentage of high level of income of the

labourers is the higher (84.1%) among the respondents of graduates of and the same is

the lowest (0.0%) among the respondents of elementary, higher elementary. The

percentage of medium level of income of the labourers is the higher (57.1%) among

the respondents of illiterate and lesser (11.1%) among the respondents of graduate. On

the other hand, the percentage of low level income of the labourers is the highest

(52.6%) among the higher elementary and significantly less (27.3%) among the

graduates and other education level of the labourers.

In order to find the relationship between literacy of the respondents and their

level income, the following hypothesis is framed and tested with the help of chi-

square test. The detailed results of the test are shown in Table 4.12.

82
HYPOTHESIS

(H0): There is no significant relationship between literacy level of the respondents and

their level of income.

TABLE 4.12
EDUCATION AND LEVEL OF INCOME
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Education 12 185.750 0.000 Reject

It is examined from the above Table 4.12 that p value is less than 0.05 and

the result is significant at 5% level. Hence, the null hypothesis (Ho) is rejected and it

is proved that There is a significant difference between level of education of the

respondents and their level of income. Highly educated labourers are getting more

income as they are skilled.

4.5.6 COMMUNITY AND INCOME LEVEL OF THE LABOURERS

Nearly 41.0 per cent of the workers belonging to the deprived community and

most of the workers are doing semi skilled or unskilled type of work. Table 4.13

shows the degree of association between the community of the respondents and their

level of income.

TABLE 4.13
COMMUNITY AND INCOME LEVEL
Income level
Sl.No Community Total
Low Medium High
87 66 8
1 SC/ST 161
(54.0) (41.0) (5.0)
31 73 39
2 OBC 143
(21.7) (51.0) (27.3)
26 18 45
3 Others 89
(29.2) (20.2) (50.6)
4 Total 144 157 92 393

83
 Table 4.13 highlights that 5.0 per cent of the labourers of SC/ST community,

27.3 per cent of labourers of OBC and 50.6 per cent of other community labourers

come under the category of high level income group. In the case of medium level

income group 41.0 per cent labourers are SC/ST community, 51.0 per cent of the

labourers are OBC while 20.2 per cent are others. As for the low income group is

concerned, 54.0 per cent of the labourers are SC/ST, 21.7 per cent of the labourers are

OBC, while 29.2 per cent of the labourers are belonging to other community.

In order to find the relationship between community of the respondents and

their level income, the following hypothesis is framed and tested with the help of Chi-

Square test. The detailed results of the test are shown in the following Table 4.14.

HYPOTHESIS

(H0): There is no significant relationship between community of the respondents and

their level of income.

TABLE 4.14
COMMUNITY AND LEVEL OF INCOME
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Community 4 88.824 0.000 Reject

Table 4.14 shows that p value is less than 0.05 and the result is significant at

5% level. Hence, the null hypothesis (Ho) is rejected and it is proved that There is a

significant relationship between community of the respondents and their level of

income. Other community labourers are getting more income than OBCs and

SC/ST.

84
4.5.7 TOTAL WORK EXPERIENCE

The contract labourers are working continuously even though the period of

contract is for the maximum period of nearly a year. Table 4.15 explains the work

experience of contract labourers.

TABLE 4.15
TOTAL WORK EXPERIENCE OF CONTRACT LABOURERS
Sl. No Work experience in years No. of Labourers Percentage
1 Up to 2 40 10.18
2 2 to 4 85 21.63
3 4 to 6 94 23.92
4 6 to 8 58 14.76
5 Above 8 116 29.52
6 Total 393 100

From Table 4.15, it is found that10.18 per cent labourers have up to 2 years

of experience, 21.63 percent labourers are having 2 to 4 years of experience, 23.92

per cent labourers are having 4 to 6 years of experience, 14.76 per cent labourers are

having 6 to 8 years and 29.52 per cent labourers are having above 8 years

experience. Nearly 30 per cent of the labourers are having work experience more than

8 years without job security with less pay.

4.5.8 TOTAL WORK EXPERIENCE AND INCOME LEVEL OF THE LABOURERS

The contract labourers are working continuously even though the period of

contract is for the maximum period of nearly a year. With a view to find the degree of

association between age of the respondents and their level of income, a two-way table

was prepared and is shown in Table 4.16.

85
 TABLE 4.16
TOTAL WORK EXPERIENCE AND INCOME LEVEL
Income level
Sl. No Work experience Total
Low Medium High
10 12 18
1 Up to 2 years 40
(25.0) (30.0) (45.0)
21 33 31
2 2-4 years 85
(24.7) (38.8) (36.5)
22 45 27
3 4-6 years 94
(23.4) (47.9) (28.7)
15 32 11
4 6-8 years 58
(25.9) (55.2) (19.0)
76 35 5
5 Above 8 years 116
(65.5) (30.2) (43.0)
6 Total 144 157 92 393

Table 4.16 highlights that the percentage of high level of income of the

labourers is higher (45.0%) among the respondents having total work experience up to

2 years of and the same is the lowest (19.0%) among the respondents of work

experience 6-8 years. The percentage of medium level of income of the labourers is

higher (55.2%) among the respondents having total work experience 6-8 years and

lesser (30.0%) among the respondents having total work experience of above 8 years.

On the other hand, the percentage of low level income of the labourers is the higher

(65.5%) among the respondents having total work experience of above 8 years and

significantly less (25.0%) among the labourers having up to 2 years.

4.5.9 WORK EXPERIENCE IN PRESENT COMPANY AND INCOME LEVEL OF

THE LABOURERES

This study reveals that of the contract labourers of public sector are continuing

with the contract job with the expectation that the service renders as contract

labourers in the said organisation may be considered for the regularisation and to get

similar benefits on par with the regular employees. Hence they continue their service

86
in the same company for a longer period though the wages are low. Table 4.17 shows

the total work experience of labourers in present company.

TABLE 4.17
TOTAL WORK EXPERIENCE OF LABOURERS IN PRESENT COMPANY

Work experience No. of respondents Percentage

Up to 3 163 41.48
3 to 6 93 23.66
Above 6 137 34.86
Total 393 100.00

Table 4.17 specifies that 41.5 per cent workers are having up to 3 years of

work experience in the present company, 34.9 per cent of workers are having above 6

years of work experience and 23.7 per cent of workers having 3 to 6 years of work

experience in the present company. The workers are not covered by the Payment of

Gratuity Act even though they are having eligible continuous service for gratuity.

With a view to find the degree of association between work experience in

present company of the respondents and their level of income, a two-way table was

prepared and is shown in Table 4.18.

TABLE 4.18
WORK EXPERIENCE IN PRESENT COMPANY AND INCOME LEVEL

Work experience in Income level

Sl. No Total
present company Low Medium High
36 61 66
1 Up to 3 years 163
(22.1) (37.4) (40.5)
23 49 21
2 3-6 years 143
(24.7) (52.7) (22.6)
85 47 5
3 Above 8 years 137
(62.0) (34.3) (3.6)
4 Total 144 157 92 393

87
 Table 4.18 highlights that 40.5 per cent of the labourers of up to 3 years work

experience, 22.6 per cent of labourers of 3-6 years and 3.6 per cent of labourers of

above 8 years experience come under the category of high level income group. In the

case of medium level income group 37.4 per cent labourers are up to 3 years work

experience, 52.7 per cent of the labourers are 3-6 years experience while 34.3 per cent

are above 8 years experience. As for the low income group is concerned, 22.1 per

cent of the labourers are experienced up to 3 years, 21.7 per cent of the labourers are

experienced 3-6 years, while 62 per cent of the labourers are experienced above 8

years.

The period of service rendered in the organisations has not been given weight-

age during wage fixation. Marital status and size of the family are eliminated in the

appreciation process of the wage. Marital status, family type of the labourers, total

work experience, and work experience in the present company of the labourers are not

influencing the level of income.

4.5.10 WORKING HOURS PER DAY OF LABOURERS WITH ORGANISATION

This study has found that some of the labourers are working a long hours per

day. The following Table 4.19 shows that the frequency and percentage of the

labourers and their working hours per day.

TABLE 4.19
WORKING HOURS PER-DAY OF LABOURERS WITH ORGANISATION
No. of No. of
Sl. Working Percent Percent
labourers in labourers in
No hours/day age age
public sector private sector
1 8 hours 193 49.1 57 14.5
2 9 hours 21 5.3 106 27.0
3 10 hours 04 1.0 06 1.5
More than 10
4 02 0.5 04 1.0
hours
5 Total 220 56.0 173 44.0

88
 Table 4.19, reveals that 14.5 labourers are working in private sectors work for

8 hrs per day, 27 per cent of labourers are working for 9 hrs, 1.5 per cent are working

for 10 hrs and only 1 per cent of the labourers work more than 10 hrs per day. But in

the public sector 49.1 per cent labourers are working for 8 hrs, 5.3 per cent labourers

are working for 9 hrs and, 1.5 per cent of the labourers are working for 10 hrs and

more. In public sector the work time is strictly followed and is not more than 8hrs per

day (field work may take more time but it does not exceed 10 hrs). In private sector

most of the labourers work for 9 hrs.

4.5.11 WORKING HOURS/DAY AND INCOME LEVEL OF THE LABOURERS

This study has found that 143 workers (46.4) percent of the labourers are

working more than 8 hours without getting any monetary benefits. This study analysis

the working Hours/day with the income level of the labourers and is shown as two

way table in the following Table 4.20.

TABLE 4.20
WORKING HOURS/DAY AND INCOME LEVEL
Income level
Sl. No Working hours/day Total
Low Medium High
123 95 32
1 8 hours 250
(49.2) (38.0) (12.8)
17 56 54
2 9 hours 127
(13.4) (44.1) (42.5)
3 3 4
3 10 hours 10
(30.0) (30.0) (40.0)
1 3 2
4 Above 10 hours 6
(16.7) (50.0) (33.3)
5 Total 144 157 92 393

Table 4.20 highlights that, the percentage of high level of income of the

labourers is higher (42.5%) among the respondents having 9 hours as working hours

of and the same is the lowest (12.8%) among the respondents having 8 hours as their
89
working hours per day. The percentage of medium level of income of the labourers is

higher (50.0%) among the respondents having above 10 hours as working hours per

day and lesser (30.0%) among the respondents having working hours as 10 per day.

On the other hand, the percentage of low level income of the labourers is higher

(49.2%) among the respondents having working hours 8 hours and significantly less

(13.4%) among the labourers having working hours 9 hours per day.

In order to find the relationship between working hours per day of the

respondents and their level income, the following hypothesis is framed and tested

with the help of Chi-Square test. The detailed results of the test are shown in the

following Table 4.21.

HYPOTHESIS

(H0): There is no significant relationship between working hours per day of the

respondents and their level of income.

TABLE 4.21
WORKING HOURS/DAY AND LEVEL OF INCOME
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Working hours 6 64.725 0.000 Reject

Table 4.21 reveals that p value is less than 0.05 and the result is significant at

5% level. Hence, the null hypothesis (Ho) is rejected and it is proved that There is a

significant relationship between working hours of the respondents and their level of

income. The labourers one who work 9 hours and 10 hours are getting more income.

90
4.5.12 GETTING WAGE IN TIME

Getting wage in time is one of the great problems faced by the contract

labourers. For contract worker as like regular workers the principal employers will not

fix the exact payment date with regular intervals. The following Table 4.22 shows the

results of getting wage in time of the labourers.

TABLE 4.22
GETTING WAGES IN TIME
Sl. No Getting Wage in Time Frequency Percentage
1 Yes 265 67.4
2 No 128 32.6
3 Total 393 100

Table 4.22, it is found that there are 265 labourers (67.4%) are getting wage in

time, 128 labourers (32.6%) are not getting wage in time. Wage in time depends on

the contractor, one who distributes the salary.

4.5.13 MODE OF RECRUITMENT

The labourers use the source of local contacts to know about the ongoing

recruitments or available vacancies in a particular organisation. They join the work

even without asking the terms and conditions of employment. Table 4.23 shows the

recruitment methods observed in this study.

TABLE 4.23
MODE OF RECRUITMENT OF THE LABOURERS
Sl. No Method of Recruitment Frequency Percentage
1 Contractor 189 48.1
2 Principal Employer 41 10.4
3 Regular Employer 95 24.2
4 Others 68 17.3
5 Total 393 100

91
 Table 4.23 shows that 48.09 per cent of the labourers are recruited by

contractor, 10.43 per cent labourers are recruited by principal employer, 24.17 per

cent labourers are recruited by the recommendation of regular employees and 17.30

per cent labourers are recruited by their friends, relatives and others. In the study we

find that the contractors are recruiting more labourers and the regular employers also

help the labourers to work on a contract basis and also friends and relatives help the

labourers to get contract job. The principal employers recruited a lesser percentage of

labourers.

4.5.14 SAVING PATTERN OF CONTRACT LABOURERS

Savings is one of the important factors which determine the economic

conditions of society and nation as a whole. The savings helps the labour to meet

unexpected expenditure and the help them when they lose job, and also in their old

age time. The saving is very important for the contract labourers because of their

irregular job conditions. Table 4.24 shows the saving pattern of the labourers.

TABLE 4.24
SAVING PATTERN OF THE LABOURERS
Sl. No Saving t Frequency Percentage
1 Yes 122 31.0
2 No 271 69.0
3 Total 393 100

Table 4.24 reveals that only 122 labourers (31%) are having the saving habit.

But majority 271 labourers (69%) are not having any saving habit. The saving is less

in percentage due to the low economic conditions.

In order to examine whether there is any significant association between the

identified variables such as organization type, age, family type, and community with

92
saving and borrowing pattern of labour in the telecom service, Chi-square test has

been used.

4.5.15 SAVING PATTERN OF LABOURERS BY ORGANISATION

It is found only 122 labourers (31%) are having the saving pattern and that

too dependent upon their organisation, age, family and community. Table 4.25 shows

the saving pattern of the contract labourers with association with the organisation

type.

TABLE 4.25
SAVING PATTERN OF LABOURERS BY ORGANISATION

Details Frequency Percentage

Public sector 30 24.6
Private sector 92 75.4
Total 122 100

Table 4.25, it is found that 24.6 per cent labourers in public sectors are having

the saving pattern. The labourers of the private sector are having more saving pattern

than that of the public sector. The labourers of private sector get more income and

incentives also. The public sector labourers are getting less income of Rs.236 per day

and no incentives. The public sector labourers are not getting wages for the non

working days including the National and Festival Holidays and weekly offs.

In order to find the relationship between organization type and saving pattern

of the labourers, the following hypothesis is framed and tested with the help of chi-

square test. The results are given in Table 4.26.

93
HYPOTHESIS

(H0): There is no significant difference between orgnaisation types and saving pattern

of labourers.

TABLE 4.26
SAVING PATTERN OF LABOURERS BY ORGANISATION
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Organisation type 2 70.740 0.000 Rejected

Table 4.26 reveals that the p value is less than 0.05 at 5% significant level.

So the null hypothesis is rejected and the study finds that there is a significant

difference between the organization type and saving pattern. The saving pattern of

labourers of private sector organisations is significantly different from the public

sector.

4.5.16 AGE AND SAVING PATTERN

Age is one of the important factor influencing saving. Table 4.27 shows the

saving pattern of different age group of labourers.

TABLE 4.27
SAVING PATTERN OF LABOURERS BY AGE

Age Frequency Percentage

Up to 25 43 35.25
26-35 51 41.80
36-45 16 13.11
Above 45 12 09.84
Total 122 100.00

94
 Table 4.27 reveals that 41.80 per cent labourers are belonging to the age group

of 26-35 have the maximum saving pattern followed by the age group up to 25.

The labourers belonging to the age group of up to 25 and 26-35 are conscious

about their future and that group also has subsidiary income from other works. Further

their overall monthly expenditure for self and family is much lesser than the

labourers age group above 36.

In order to find the relationship between age and saving pattern of the

labourers, the following hypothesis is framed and tested with the help of chi-square

test. The result is given in the Table 4.28.

HYPOTHESIS

(H0): There is no significant difference between age and saving pattern of labourers.

TABLE 4.28
SAVING PATTERN OF LABOURERS BY AGE
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Age 3 18.568 0.000 Reject

From Table 4.28 the p is less than 0.05 at 5% significant level. So the null

hypothesis is rejected and the study finds that there is a significant difference between

the age group and saving pattern. The saving pattern of labourers of up to 25 and

26-35 is significantly different from the age group of 36-45 and above 45.

4.5.17 FAMILY TYPE AND SAVING PATTERN

The family type influences the saving pattern of the labourers. Multiple

earning members of the joint family system contribute to the capacity of saving

money for the labourers. In the nuclear family less expenditure and the income of

95
spouse helps for saving pattern. Table 4.29 shows the family type and saving pattern

of respondents.

TABLE 4.29
SAVING PATTERN OF LABOURERS BY FAMILY
Details Frequency Percentage
Joint family 49 40.16
Nuclear family 64 52.46
Independent 9 07.38
Total 122 100.00

From Table 4.29, in the family type the labourers in the nuclear family have

grater saving pattern than the joint and independent families. In the joint family 40.16

per cent are, having the saving pattern as against the nuclear family. In nuclear family

the expenditure is less compare to the joint family.

In order to find the relationship between family type and saving pattern of the

labourers, the following null hypothesis is framed. The result is given in the Table

4.30.

HYPOTHESIS

(H0): There is no significant difference between family type and saving pattern of

labourers.

TABLE 4.30
SAVING PATTERN OF LABOURERS BY FAMILY TYPE
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Family typ 2 2.133 0.344 Accept

96
 From Table 4.30, it is noted that the p value is more than 0.05 at 5%

significant level. So the null hypothesis is accepted and the study finds that there is

no significant difference between the family type and saving patterns.

4.5.18 COMMUNITY AND SAVING PATTERN OF LABOURERS

Among the total sample 393 labourers 40.97 per cent belong to deprived

SC/ST community. Table 4.31 shows the saving pattern of the labourers with

community wise.

TABLE 4.31
SAVING PATTERN OF LABOURERS BY COMMUNITY
Details Frequency Percentage
SC/ST 26 21.31
OBC 51 41.80
Others 45 36.89
Total 122 100.00

Table 4.31, reveals that 41.80 per cent labours belong to OBC community

36.89 per cent of other community has saving pattern. The majority of labourers

belonging to the SC/ST community have lesser saving pattern than the labourers of

OBC and other community. In order to find the relationship between community and

saving pattern of the labourers, the following null hypothesis is framed and the result

is given in Table 4.32.

HYPOTHESIS

(H0): There is no significant difference between saving pattern and community of

contract labourers.

97
 TABLE 4.32
SAVING PATTERN OF RESPONDENTS BY COMMUNITY
(CHI-SQUARE TEST)
Sl. No. Variables Df Chi-square value Sig(p). H0

1 Community 2 33.951 0.000 Reject

Table 4.32 rejects the hypothesis and it is proved that there is a significant

difference in the saving pattern of labourers with community. The saving pattern is

less for the SC/ST compare to the OBC and others. The p value is less than 0.5 at

5% significant level. So the null hypothesis is rejected and this study proves that the

saving pattern is much influenced by the community which they belong.

4.5.19 BORROWING PATTERN OF CONTRACT LABOURERS

Nearly 77 per cent of the labourers are in the low income or minimum income

group. Fulfilling the family commitment with this low income the labourers, have to

borrow money. Table 4.33 shows the borrowing pattern of contract labourers.

TABLE 4.33
BORROWING PATTERN OF THE LABOURERS
Sl. No Borrowing pattern Frequency Percentage
1 Yes 191 48.6
2 No 202 51.4
3 Total 393 100

Table 4.33 shows that there are 186 labourers (48.6) borrowing money from

the different sources like banks, money lenders, friends and relatives to lead their life

and other important expenditure. Table 4.34 shows that the sources of borrowing of

the labourers.

98
 TABLE 4.34
SOURCES FROM WHICH THE LABOURERS BORROW MONEY
Sl. No Sources Frequency Percentage
1 Moneylenders 59 30.9
2 Banks 39 20.4
3 Others(friends, relatives and neighbours) 92 48.7
4 Total 191 100

Table 4.34, there are 92 labourers borrowed money from their friends,

relatives and others with low or no interest. The banks and money lenders demands

some collateral for lending money.

4.5.20 BORROWING PATTERN OF LABOURERS BY ORGANISATION

To meet the emergency expenditure and to meet the month end expenditure

the labourers borrow money. Table 4.35 shows the association between orgnnisation

type and borrowing pattern of the labourers.

TABLE 4.35
BORROWING PATTERN OF LABOURERS BY ORGANISATION TYPE
Organisation No. of respondents Percentage
Public sector 117 62.90
Private sector 69 37.10
Total 186 100.00

From Table 4.35, it is found that 62.90 per cent labourers of public sectors and

37.10 per cent labourers are borrowed money from different banks, financial

institutions, money lenders friends, relatives and neighbours. Among them the public

sector labourers constituted more as their income is fixed for all type of work and all

age and experience.

99
 The study finds the significant association between borrowing pattern and

orgnaisation type of the labourers. Table 4.36 shows the borrowing pattern of

respondent by organisation type.

TABLE 4.36
BORROWING PATTERN OF RESPONDENTS BY ORGANISATION
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Organisation type 1 6.869 0.009 Rejected

From Table 4.36 the p is less than 0.05, so the null hypothesis is rejected and

the study finds that there is a significant difference between the organisation type and

borrowing pattern of labourers. The borrowing pattern of labourers of private sector

organisations is significantly different from the public sector.

4.5.21 BORROWING PATTERN OF RESPONDENT BY AGE

Table 4.37 shows the borrowing pattern of the labourers by age. The table

shows the association between the age and borrowing pattern of the labourers.

TABLE 4.37
BORROWING PATTERN OF LABOURERS BY AGE

Age No. of respondents Percentage

Below 25 32 17.2
26-35 94 50.54
36-45 48 25.81
Above 45 12 6.45
Total 186 100.00

Table 4.37 reveals that, 50.54 per cent labourers of the age group of 26-35

borrow more than the others. The labourers of this age group getting more salary and

having repaying capacity.

100
 In order to find the relationship between age and borrowing pattern of the

labourers, the following null hypothesis is framed and the result is shown in the Table

4.37.

HYPOTHESIS

(H0): There is no significant difference between age and borrowing pattern of

labourers.

TABLE 4.38
BORROWING PATTERN OF LABOURERS BY AGE
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Age 3 12.045 0.000 Reject

From Table 4.38 the p is less than 0.05 at 5% significant level. So the null

hypothesis is rejected and the study finds that there is a significant difference between

the age group and borrowing pattern the labour of up to 25 and 26-35 are

significant difference from the age group of 36-45 and above 45.

4.5.22 BORROWING PATTERN OF LABOURERS BY FAMILY TYPE

The labourers borrow money from different sources for their family

expenditure the family type also influence the borrowing pattern. Table 4.38 shows

the borrowing pattern of labourers by family type.

101
 TABLE 4.39
BORROWING PATTERN OF LABOUERS BY FAMILY TYPE
Family type No. of respondents Percentage
Joint family 78 41.94
Nuclear family 100 53.76
Independent 8 4.30
Total 186 100.00

Table 4.39, reveals that there are 53.76 per cent of labourers belong to the

nuclear family tend to have borrowing pattern followed by 41.94 per cent belong to

joint family. This is due to comparatively more number of earning members in joint

families. In order to find the relationship between family type and saving pattern of

the labourers, null hypothesis is framed. The result is given in Table 4.39.

HYPOTHESIS

(H0): There is no significant difference between family type and borrowing pattern of

labourers.

TABLE 4.40
BORROWING PATTERN OF LABOURERSS BY FAMILY TYPE
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Family type 2 9.373 0.009 Reject

Table 4.40 reveals that, the p value is less than 0.05 at 5% significant level.

So the null hypothesis is rejected and the study finds that there is a significant

difference between the family type and borrowing pattern. The nuclear familys

borrowing pattern is differing from others.

102
4.5.23 BORROWING PATTERN BY COMMUNITY

Several other studies on contract labourers found that the contract labourers

are from deprived class borrowing pattern is more. This study also confirms it. The

meager and irregular income makes the labourers borrow for their immediate and

important expenses. Table 4.41 shows the borrowing pattern of labourers by

community.

TABLE 4.41
BORROWING PATTERN OF LABOURERS BY COMMUNITY
Community No. of respondents Percentage
SC/ST 86 46.24
OBC 65 34.94
Others 35 18.82
Total 186 100.00

Table 4.41 depicts that 46.24 per cent of labourers belong to the SC/ST

community form a majority followed by OBC as 34.94 per cent and others constitute

only 18.82 per cent. In order to find the relationship between community and

borrowing pattern of the labourers, the following null hypothesis is framed. The result

is given in Table 4.42.

HYPOTHESIS

(H0): There is no significant difference between family type and borrowing pattern of

labourers.

TABLE 4.42
BORROWING PATTERN OF LABOURERS BY COMMUNITY
(CHI-SQUARE TEST)

Sl. No. Variables Df Chi-square value Sig (p). H0

1 Community 2 4.881 0.087 Accepted

103
 Table 4.42 confirms that borrowing pattern is also related with the community

which they belong to them. The p value is more than 0.5, at 5% significant level. So

the null hypothesis is accepted and this study proves that the borrowing pattern is

much influenced by the community which they belong.

The saving and borrowing pattern exhibit the socio economic conditions of the

labourers in this study. They are trying to uplift by other source of income. For that

they have to work more. Optimum utilisation of the labour force using modern

technology develops the telecom sector to the highest quality and user friendly, gives

the benefit for both the organisational development and the labourers development.

4.6 PRIME FACTORS INFLUENCING ON PERSISTENCE OF THE CONTRACT

LABOUR

The study has observed some of the prime factors which induce the labourers

to work as contract basis for low income. The FDI inflow creates more job

opportunity for employees and profit opportunity for employers. The employer

appointed contract labourers for many reasons as saving capital and overhead costs,

change in technology, to avoid the responsibility of labourers providing the proper

service conditions, escape from the various legal activities and face the competitive

market. On the other hand the pilot study reveals that, seven types of prime factors

which influence the labourers as work for the contract basis. The contract labourers

have given the list of the seven factors under the separate headings and are asked

them to rank according to their view to identify prime factors. The ranks assigned by

the labourers against each factors are converted into the percentage positions and

transacted scores in the scales of 100 points are taken from the Garrett Ranking Table.

The mean score and ranks obtained for the identified factors based on Garretts

Ranking Techniques are shows in the Table 4.43. the factors are easy availability of

104
job, poverty of the labourer, flexible working time, education level, unskilled

nature of work, reasonable wages, and availability of continuous work.

The labourers get the contract basis job easily with the help of their friends,

relatives and from other sources; they accept that job for their poverty, and their

education level. Most of the contract workers are uneducated, completed their basic

education, they can get unskilled or semiskilled type of job with some reasonable

wages. For some workers who are already engaged in some petty business or other

small business is also engaged in this contract work to get some regular income and

they can get more work flexibility in the outdoor works. These factors are influencing

the labourers as to continue as the contract labourers. These factors are ranked by the

respondent these ranked are analysed by the mean score method and the results are

given in the Table 4.43.

TABLE 4.43
PRIME FACTORS INFLUENCING THE PERSISTENCE OF
CONTRACT LABOUR
Sl. No Factors influencing contract labour Mean Score Rank
1 Easy availability of job 49.02 5
2 Poverty of the respondent 60.87 1
3 Flexible working time 38.05 7
4 Education level 50.26 4
5 Unskilled nature of work 50.98 3
6 Reasonable wage 55.12 2
7 Work continuity 45.67 6

From the Table 4.43, poverty of the labour is the main reason among the

prime factors which influence the contract basis work with score of 60.87. The

increasing level of literacy compels the contract labourers to select the unskilled or

semiskilled nature of job with fewer wages. Since the reasonable wages, unskilled

105
nature of job and education level is placed as the 2nd, 3rd and 4th respectively. Easy

availability of job is ranked 5th as there is no job security given by the employer.

Though there is lack of job security and change of the contractor, the labourers will

continue in the same job as there is flexibility in the work time. Hence the factor

work continuity is ranked 6th and flexible working time is placed 7th.

4.9 CONCLUSION

This chapter analyses and finds some details of the demographic and socio-

economic conditions of the contract labourers. This study analyses the prime factors

that influence the contract labourers to select and continue in the same job. The result

concludes that the telecommunication sector uses younger contract labourers at the

age group of 26-35 in all types of work. Most of the labourers are less educated and

belonging to the Hindu religion and lower caste. Since the labourers are having only

the minimum level of education, their dependence on this job is unavoidable in spite

of getting low wages. Though they couldnt meet their immediate or unexpected

expenditure they borrow money from their friends or relatives. The wages earned

from the job has become insufficient in many cases and a major part of wages is spent

to meet the essential needs of life such as food, shelter, health. Some labourers are

able to save some money with the contribution of spouse or other family members

income. This study analyses the null hypotheses and finds the results. It rejects the

null hypotheses for level of income of labourers with respect to age, gender, work,

education, community organizations and working hour/day. This study rejects the null

hypotheses for saving pattern of labourers with respect to organisation, age,

community and borrowing pattern of labourers with respects to organisation, age, and

family type. At the same time it accepts the null hypothesis for the saving pattern of

106
the labourers by family type and for borrowing pattern of the labourers by

community.

This study has identified some prime factors that influence the labourers to

choose and make them to continue as a contract labour. The poor economic condition

and weak affordability to continue the education are major contributing factors for

choosing the contract jobs. The flexible and liberal recruitment system also makes

these types of jobs attractive to this poorly competent work force. The incapability of

getting other jobs, hope of becoming regular employees of the company someday

make the labourers to stick to this jobs in spite of non availability of service weight-

age, annual increments, superannuation benefits and job security.

107