19 June, 2011
How many workers are employed at BASF India’s Mangalore plant? How many of these do not have permanent direct contracts?
The company has 420 workers altogether, 300 are contract workers. There are two women who are contract workers. The contract workers are employed by 10 different agencies which operate in the plant. Six years ago, there were only permanent workers working on the production line, and no contract workers. Now there are even contract workers on the production line, working the same jobs as permanent workers.
Do all workers have written contracts? Is it clear who their employer is?
Workers have written contracts, and the name of the contractor which employs them is displayed on their identity cards. The card is valid for six months and then they have to renew their card again. They continue as workers. Some workers are migrants and only stay for between four to six months then they return home. Others stay for two-to-three years.
Interviewees (from right to left in picture):
Mr. C. Mohandas, Forklift operator and Branch Vice President
Mr. K. Mohandas, Production Worker in Coating Division and Branch Secretary
Mr. Ashok Jogi, Store Forklift Operator and Branch Treasurer
What wages do permanent and contract workers receive, and what hours do they work?
Permanent workers are paid a wage of Rs. 13,000 per month. They work eight hours per day, six days a week.
Contract workers who do housekeeping and security are paid Rs. 4,500 per month. They work eight hours per day and have no weekly day off.
Contract workers on the production line are paid piece-rate. The contract workers who work in packing, loading and unloading are paid about Rs. 7,000 per month. They have to work, on average, nine-to-ten hours a day to earn this. They have no weekly rest day. Contract workers on the production line do the same job as permanent workers.
Contract workers’ wages are not enough. It is very tough to manage family economics. If you want to rent a small single room, the cost is Rs. 2,000 per month. Electricity and gas cost about Rs. 300–400. In one room, they accommodate five of six persons sometimes - normally they are bachelors. If they use the canteen for breakfast and dinner, the cost is Rs. 1,400 per month. For lunch in the canteen contract workers have to pay Rs. 24. The cost is only Rs. 5 for permanent workers.
Have contract workers demanded a rest day?
The workers feel under pressure, and are afraid that the company will dismiss them if they ask for a day off. If workers do receive a rest day they are not paid for that day.
Do contract workers have the same leave entitlements as permanent workers?
Permanent workers in the factory receive seven days casual leave, ten days of public holidays, 18 days privilege leave and up to six sick days leave per year. Contract workers receive no annual leave and no paid public holidays.
Do all workers receive equal benefits?
No. Contract workers get fewer benefits. For permanent workers they give a transport allowance, but contract workers do not get this. In the canteen, contract workers have to pay the exact rate, not the subsidised rate.
Do all workers receive equal treatment with respect to health and safety?
Both permanent and contract workers freely receive health and safety protective equipment like gloves and helmets and safety shoes and goggles, and safety training.
If contract workers have health problems, they have to go back to their villages because there is no adequate provision for them. The Employees State Insurance Corporation (ESIC) should provide medical facilities. BASF India deducts ESIC payments from contract workers’ wages, but it is not clear whether the payments are made to ESIC. One month ago, a contract worker seriously injured his finger. The worker needed to take five days off, but he did not receive salary during this time. The worker had no ESIC card (a card is usually issued to all members), so that worker could not access medical facilities.
When Germans come to visit the factory, managers claim the plant has been an “accident free zone” for 900 days. But when workers suffer relatively minor injuries they are still required to come to the factory and punch their card. The workers are not required to work, but sit in a room for their shift. This is how management maintains an accident-free record.
One contract worker suffered serious injuries when solvents caught fire. The worker has been out of his job for one month now, and we are not sure if he is receiving wages or not.
Are any contract workers members of your union?
There is no union for contract workers. Only permanent workers are members of the BASF Workers’ Union. Contract workers wanted to organise about 4 years ago, but management fired seven contract workers immediately. Now they don’t want to join any trade union because of fear.
Management tried to force the Vice President and Treasurer to leave the union. They said what is the need of the union? Management said this year we finished the trade union. Management forced 44 permanent workers not to join the union, to sign individual wage agreements. And now management recently made another three members leave by mental harassment. Management called their family members to pressure them.
What is the most challenging aspect of being a contract worker in BASF India?
The worst thing is the low wages. Low wages have a very negative impact on contract workers lives.
What is your union’s number one demand?
Regularisation. The contract labour system should be abolished. At the very least contract workers should receive equal pay and benefits.