It has been around one and half year from last post. Every time I write a blog I think of continuing. Writing with the same feeling this time also. Let us see. J
Recently my company sent me to Baddi. Baddi is an industrial area in Himachal Pradesh and also a tax free zone. To take advantage of tax exemption, my company has set up a plant in this area (like many others). You will find many pharmaceutical as well as FMCG companies operating in Baddi. It is one half hours away from Chandigarh.
When I left Mumbai for Baddi, I had come with plans of visiting friends in Chandigarh, going to nearby tourist places, etc. Today is 22nd day of my stay here and I have not been able even to go the swimming pool of the apartment in which I am currently put up. A hell lot of work pressure! Entire day goes in follow-up and manpower management.
Such is the manpower shortage in Baddi, a newcomer like me gets frustrated quickly. You come to factory in morning only to see that Casuals have not turned up and production is going to suffer big time. Then your boss calls you up and fires you left right centre and the conversation ends with you committing a production number which you know you will not be able to deliver. This then becomes a routine. And this was indeed the routine for first 10 days. After that me and my boss, both have become used to it.
One fine evening, rather night; I was thinking about why is there such an acute shortage of skilled labour. The reasons were all there, waiting to be found out.
1. Locals have got astronomical sums of money for the land they had. Once upon a time, they were struggling to fill their empty stomachs. Now they roam around in Scorpios. Good for them actually. As a result, local labour is totally absent. This is a common phenomenon everywhere there is a sudden rush of development. Nothing new.
2. Like everywhere else, companies here have 2 sets of workers: 1 set which is on the rolls of company and another set which is casual labour. Casual labour working Baddi are mostly from outside. Yes you guessed it right, from Bihar, UP & Rajsthan. Thank god there is no Raj Thackeray here as of now.
a. Now, problem with these people is they are available in groups of 10,20,30 etc. They have this habit of going back to their homeland in groups. When they do go, it becomes very difficult to find another group. May-June being the vacation months, labour shortage becomes acute.
b. Another issue is, as they are in groups they are very sensitive about their groups. They have sort of formed unions. So if one worker gets some flak from superiors, they all will revolt and will stop work. A factory manager needs to be very careful handling such cases.
c. Some of the organizations have gone to the extent of increasing the wages by 100% or even more. This has brought the wages at par with some of the permanent employees. But it is causing many problems to small sector enterprises as they cant afford such wages.
This analysis sparked a series of thoughts in my mind. Every day we read a lot about rich becoming richer and poor becoming poorer. Left parties keep on fighting for the cause of poor. (or claim to do so). They make unions, make protests, call strikes. They accuse and rightly so that salaries of some few individuals are more than the combined salaries of working class. Obviously we can’t make a manager’s salary equal to worker’s. But we certainly can bring down the gap to a respectable level. The Baddi situation provides at least the direction, if not the solution.
Why can’t be there 100 Baddis in India where there will be fast development which will generate huge skilled manpower requirement. The demand supply law will then make sure that the workers get respectable wages and overall living standards will be raised? Why can’t each state government try such model atleast at one location in respective state, then check the results and then replicated the model to other under developed places?
There may be issues in doing things stated above. Need to research on those. Will come back after that.

