CHAPTER-V Labour Market of Tiruppur, Kannur and Morbi...

CHAPTER-V

Labour Market of Tiruppur, Kannur and Morbi Towns

V.l Introduction

Flexible specialisation IS a new paradigm for industrialisation in

developing countries. What is the condition of labour under the regime ofFlexible

Specialisation? Here we need a band of skilled workers with an innovative mind.

They produce for the competitive market in a creative and interesting work

environment Here working conditions are also humane. We also know that

Flexible Specialisation is a strategy of permanent innovation and an

accommodation to ceaseless changes of demand in the market by the firms. Here

the firms don't require same quantities of labour at all times. The question is of

labour flexibility. Labour flexibility refers in general to a logic of tailoring labour

inputs in production to shifting levels and qualities of output (Storper and Scot,

1990). There are three domains of labour relations in which producers may

attempt to introduce flexibility. Firstly - they make the wage rate downwardly

adjustable and strike wage bargains on an individualised, worker by worker basis.

Secondly - internal flexibility where polyvalent skills and aptitudes enables

workers to perform many different kinds of task inside the production units.

Thirdly - external flexibility primarily achieved through turnover, which is

particularly high where output level fluctuates widely and workers are easily

replaceable.

Internal and external flexibility are managerial strategies for adjusting

production under conditions of competition and their impact on workers level of

security is substantial. There can be three kinds of workers security (Standing,

1988) -job security - the extent to which a worker is guaranteed a job with a

particular firm; employment security- the degree of fixity of workers tasks within

a particular firm; and labour market security, the workers ability to remain

employed within a given labour market, but possibly in a series of different jobs.

The main o~jective ofthis chapter is to understand the conditions oflabour

in the regime of Flexible Specialisation. In addressing the labour market of the

three towns, we shall develop few issues from flexible specialisation and try to fit

these in the context of labour market of the towns.

136

Holmstrom ( 1994) had suggested that, in a country like India - with a

massive surplus of labour, including many kinds of highly skilled labour - there

appears three possible paths to developments. First is the Fordist mass production

(boring, deskilled, but well paid for those lucky enough to find jobs). Secondly the

existence of a low paid insecure work for as many people as possible and more

hopeful scenario in the line of flexible specialisation. In our study we are not

going to consider the first one as suggested by Holmstrom.

It is more than obvious that our three towns have been able to create a

sufficient number of jobs and those coming to the towns were able to engage

themselves in some activities, except during the lean season. (We admit, Kannur

context is different from Tiruppur and Morbi; but we consider Kannur's

potentiality in the job generation). There is almost a suggestive full employment

in the three towns particularly during the peak seasons of the year.

How are the towns of Tiruppur, Kannur and Morbi able to create jobs?

Given that they have been able to create market niches for their products at

national and international level, there is enough demand for their goods

accelerating employment generation. There are two ways in which the towns or

industry or firms can create demand for their products and both have differential

impact on the conditions of labour. Flexibility can take the f{)rm of a 'active

versatility' or 'passive pliability' (Semlingar, 1990). It can consists of an ability

to exploit market niches and quickly respond to additional demand, based on a

skilled and polyvalent labour force, or it can also mean simply to submit to

outside pressure from customers and accept the cutbacks. In a massive labour

surplus economy there are two options 'low road' and 'high road' to industrial

restructuring (Sengenberger and Pyke, 1992).

The 'low road' consists of seeking competitiveness through low labour

costs and a deregulated labour market environment. It is believed that cost cutting

will boast productivity and profit. 'Low road' brings a short-Jived improvement in

competitive performance. In the long run it makes matters worse, because it

inhibits firms from building up the flexibly-skilled self confident workforce

(Holmstrom, 1994). The 'high road' is based on efficiency enhancement and

innovation, through economic gains that allow wage gains and improvement in

social conditions as well as safeguarding workers right and providing adequate

117

standards of social protection.

The whole question in labour market study is based on towns capacity to

explore the market niches for their products and thereby create jobs for the people.

If it is based on 'active versatility' and 'high road' it is good and we have not

much to say. If it is based on 'passive pliability' and 'low road' - how can we

transform the situation? Is it through some institutional regulations? Institutional

regulations for the Interest of working class-might make them more confident,

competitive and innovative and can play an important role in turning the town or

industry's production base from 'passive pliability' to 'active versatility'. Of

course they will produce good products, but entrepreneur's role to explore the

market niche for such products will be important. In the following part we shall

address some of the points on the regulation of labour markets effected through

through labour institutions and the government.

Labour market flexihility (LMF) is interpreted to mean the absence of

norms and institutions and is regarded as essential for the maximisation of both

employment and economic growth. The basic prescription which emerges from

this perspective is that interventions in the labour market by government and

labour institutions should be minimized (Ghosh, 1995). Why LMF has become a

major issue in todays world? Globalization has vastly increased the importance of

exogenous events to which economies now need to continually adjust. LMF is

viewed as an important determinant of an economy's ability to make adjustments

to its productive structure as and when necessitated by exogenous events with

minimum damage to output and employment. The structural reform programme

started by the Government oflndia in 1991, involves a shift of policy regime from

regulated and controlled policy regime to decontrolled and liberalised policy

regime. Government policy has 1iberalised financial and capital markets of foreign

trade regime. There is the agenda of government for de-regulation of labour

market. It evolved several regulations to regulate the wages of labour and

decisions regarding hiring and firing of workers. Deregulation of labour market

requires changes in labour market regulations to achieve LMF so that labour

develops capability to respond to market changes (Boyer, 1988). The necessity to

deregulate labour market has brought labour market reforms to the forefront of

13R

hegemony along with the contemporary preoccupation with compiete reliance on

the market forces to solve all the central problems of the economy (Seth, 1994 ).

There are wide disagreements about the appropriateness of the government

reforms in the labour markets of the developing countries among policy makers.

"Some view government regulations of wages, social security, job tenure and

collective bargaining as djstortions in the utopia created by free market forces.

Others believe that social reality in the developing countries create certain

objective conditions that result in large deviations from the competitive world

envisaged by free market. Therefore, they stress potential benefits of intervention.

They believe regulated market for labour adjusts better to market shocks than

unregulated labour markets. Hence, proper labour market intervention helps in the

minimization of social costs of structural adjustment" (Standing and Tokman,

1 991)

A common assumption underlying the labour market regulations in the

developing countries is that the demand for skilled workers is much higher than

their availability, whereas there exist excess supplies of unskilled workers. In the .

case of skilled workers, demand determines rriarket wage. However, in the case of

unskilled workers, the existence of excess supply necessitates government

intervention through minimum wage legislations (Seth, 1994). Due to the non

existence of any appropriate social security networks, a large number of people

are living below the poverty line. Continuity of job and job security assumes

greater importance as an essential part of the government policy. All these factors

provide the rationale for government intervention through minimum wage and job

security legislations (Seth, 1 994).

A general proposition is that economtc outcomes such as production,

efficiency, accumulation, growth and income distribution are affected by

institutions. The interest in institutions has been more pointed in the analysis of

labour markets. This is so particularly because labour market are social

institutions (non-economic aspects) of a special kind (Solow, 1 990). Labour must

be supplied by human beings who necessarily exist in a social context. Labour

139

market institutions need to allow for non-price influences on the entire chain of

labour processes, including ways in which labour is incorporated into production

about remuneration, working conditions and associated social and economic

guarantees and their determination. Information about jobs, mechanisms for

access to employment, job hierarchy in terms of status or income, motivation and

inducements to work, job and social security, skill formation and many other

factors are vital in labour performance. But the perspectives tend to be dominated

by the questions of the organisation of labour, industrial relation systems and the

state's role in the labour market. Trade Unions are viewed as the primary

institutions in the labour market (Papola and Rodgers, 1992).

The diluted role of governments in regulating LMF has weakened unions

because unions have less space to claim when scope, frequency and intensity of

tripartite industrial dialogues and social partnership are reduced in favour of

decentralized powerplay. Once solidarity is replaced by competition, market

forces tend to prevail in the long run and inflexibilities dissolve away (Mathur,

1994).

The basic issues in a study of relationship between labour institutions and

economic development are, firstly, to identify the links between economic and

social forces which results in individuals undertaking productive work,

productivity of the work and conditions under which it is done. Secondly there are

many factors which induce the workers to work and also affect their work, namely

economic incentives and rewards and the rewarding nature of particular jobs

(Papola and Rodgers, 1992). Labour institutions may serve the interest of

economic efficiency and growth. They may also be instruments to moderate the ill

effects of indiscriminate efficiency mainly in terms of maldistribution of income,

deterioration in non-economic indicators ofthe quality of life.

A common hypothesis often advanced in respect of labour institutions in

India is that they have not been helpful in the efficient and adequate use of the

large mass of available labour for economic development. Trade Unions have

'been often identified as institutions restraining employment and production. Yet

140

some industrial centres like Bombay and Ahmedabad have experienced high

growth despite unionism. In Kerala unionism have been able to sustain high

wages but at the cost of very high _levels of unemployment. Now two questions

arise in our mind. One, does LMF clear away unemployment and two (following

Pi ore 1993) - can labour institutions be housed in a competitive structure, where

cooperation exits between employee and employer (not explained by model of

labour market outcomes).

In this chapter, we intend to study whether institutions (labour, social or

government institutions) in the three towns, through regulation have been able to

turn flexibility to a form of 'active versatility'. We shall look at these issues based

on the empirical experiences we have gathered on working conditions of labour,

employee-employer relations, labour market information system, labour

flexibility, their security and skill formation.

V.2 Labour market information system

How people get into the jobs in these towns? Since all the firms are

private there are no formal procedures to recruit the workf.orce like in the

government establishments. We had interviewed both employee and employer on

how they got into the jobs or how they recruit labour? We provided the following

· options to the workers about the market information system - personal contacts,

advertisements, family and relations, direct visit to firm and any other reasons. We

asked the entrepreneurs whether they recruited workers through advertisement,

word of mouth or through contractors and other methods.

Table 5.1 shows a contrasting picture of labour market information system

for the three towns. In Tiruppur workers came to know about job availability

through personal contact with the entrepreneurs; family, friend and relatives,

direct visit to firms or through advertisement board placed outside the factory

gate. All these are common practice in Tiruppur and have almost equal share in

the labour market information system. We had interviewed 120 male workers and

80 female workers (including the child labourers) in Tiruppur. Altogether 33 male

. 141

workers (about 28 percent) and 27 female workers (about 34 percent) had reported

that they got their jobs through personal contacts. Thirty five male (29 percent)

and 21 female (about 26 percent) reported their job

Table 5.1

Labour Market Information System

Job Acquisition TIRUPPUR KANNUR MORBI tbrou2h

Male Female Male Female Male Female

1) Personal Contacts 33(27.5) 27(33.8) 25(71.-l) 11(44.0) 21(100.00 5(25.0)

2) Informal 35(29.2) 21(26.3) - - - -Advertisements

3) Family & Relations 21(17.5) 15(18.7) 4(11.-l) 6(24.0) - 15(75.0)

4) Direct visit to firms 28(23.3) 17(21.3) 5(14.3) 4(16.0) - -5) Others 3(2.5) - 1(2. 9) 4(16.0) - -Total Sample No. 120 80 35 25 21 20

• Figures in brackets are in percentage • Source of data: Field work, 1997-98

Table 5.2

How Entrepreneurs Recruit Worker

TIRUPPUR KANNUR MORBI (i) Advertisement 35 (61.4) P1 - -

. (informal) (ii) Word of Mouth 21 (36.8) PI, 14 (93.3) (100.0)

55 (96.5) PII (iii) Contractors - -(iv) Others I (1.8) 1(6.7) -

(Recommendation) N-57

Note: * PI: First priority * PII: Second priority * Figures in brackets are in percentage * Sources of data: field work, 1997-98

l.J2

N-15 N-15

acquisition through informal advertisement. For 2I male ( 18 percent) and 15

female workers (18 percent) it was done through family and relations. A

considerable proportion ofworkers (28 in total or about 23 percent male and I7 in

total or 2I percent female workers) got their jobs through direct visits to the ·firms.

We had asked the entrepreneurs how they recruit workers. Majority ofthem (35 in

total or about 61 percent) responded that they first put a board at the factory gate

indicating the type and quantity of labour requirements. Preference of 21

entrepreneurs (36.8 percent) was to send the message by word of mouth. Most of

the entrepreneurs (55 or about 97 percent) resort to word of mouth procedure as

second priority to recruit labours (Table 5.2). Now-a-days some entrepreneurs

display their labour requirements through the cinema halls advertisements. We

had earlier mentioned cinema halls as being a major source of recreation for

Tiruppur workers.

Kannur showed a difference picture. There we interviewed 35 male and 25

female workers. For 25 male workers (71 percent) personal contacts was a major

source of labour market information, while only II female workers (44 percent)

had reported this as an option. Family and relations is another major source of

information for 6 (24 percent) female workers (Table 5.1 ). Out of IS

entreprenuers with whom we had interaction I4 had reported that passing the

message through word of mouth is the main procedure for the recmitment of

labour: A few had responded to preference for recommendations by senior,

experienced workers (Table 5.2). Workers in Morbi town had responded in a

different way. All male workers responded that they got the information of job

availability through personal contact with the employer (Table. 5.1 ). In the case of

female workers, the situation we found was different from the male. Altogether 15

female workers (75 percent) responded that they got the information about job

availability through family and relatives. Rest of the female workers told that they

got job market information through personal contact. All Morbi entrepreneurs rely

on the procedure of world of mouth to recruit labourers (Table 5.2).

V.3 Education and skill of labourers

Tiruppur knitwear industry can also be seen as a generalised process of

skill acquisition. Workers have tended to acquire a range of different skills in

different workshops accentuated by the demand for labour (Cawthorne, 1995).

Even though workers can perform different kind of jobs, for the sake of

efficiency, entrepreneurs do not ask them to shift. New technologies are now

coming to Tiruppur. However, for this workers need not to suffer because the

14J

basic principles to operate the old machine and new ones are same (as reported by

the owner of a firm). Among the types of work performed in Tiruppur knitwear

industry- knitting, cutting, to stitching, ironing and packing, dyeing and

bleaching, embroidery and printing, all ofthem do not require automation, except

in knitting of yarn and embroidery and printing of cloths. Automation is optional

for embroidery and printing works - these are generally done by manual labour.

So, workers can easily adjust themselves to the new machines, after learning a few

basic tips from the technicians. Whole knitwear industry is based on labour

intensive technique and requires only semi-skilled labourers. In Tiruppur's

knitwear industry, entry point for job is through unskilled and semi-skilled jobs

for helpers. They assisted other workers in stitching, iron and packing. Knitting of

yarn, cutting of cloths to different size and stitching require some amount of

training. Helpers in course of time can adapt to these kinds of skilled work. The

dyeing master has to be qualified and highly experienced. He is responsible for

colour matching and quality of colour on the cloths. The workers who engage in

the dyeing section have to be at least semi-skilled. Embroidery and printing works

on cloths require skilled work~rs, irrespective of whether these works are done

manually or not. Automation of these works need further technical training

(Table S.A). Workers do not have to be highly educated. for such jobs. Even with

Table: S.A

Stage of Production, Degree of Automation and Workers Qualification

Stage of Work Automation Workers QUalifications TIRUPPUR Knitting Yes Skilled Cutting No Skilled Tailoring No Skilled Iron and Packin!! No Semi-skilled Helpers No Unskilled Dveing Yes Skilled/Semi-skilled Bleaching No Semi-skilled Embroidery Yes/No Skilled Printing Yes/No Skilled/Semi-skilled KANNUR Winding No Skilled Weaving No Skilled Design/Sample No Skilled Made-up No Skilled MORBI Cabinet box making Yes/No Skilled/Semi-skilled Assembling of auartz No Skilled Design No Skilled Fixation of hands. glass Yes/No Semi/Skilled

144

simple education they can perform the tasks. In Tiruppur, 63 male workers (63

percent) had reported that they had required skills before joining the present job,

while in case of female workers 26 (43 percent) had reported this (Table 5.3).

About educational qualification of workers out of I 00 male workers only 9 had

reported they were illiterate, 26 studied upto primary school, 42 studied upto

middle school and 23 workers responded that they studied upto secondary school.

There is not much variation in educational qualification of female workers from

the male workers. Out of 60 female workers with whom we had interactions only

one had reported that she is illiterate. Among others 13 (about 22) percent studied

upto primary school, 32 (53 percent) studied upto middle school and 13 (22)

percent reported that they studied in high school. One worker reported that she has

passed class XII (Table 5.4).

Table 5.3

Skill before Joining The Present Job

TIRUPPUR KANNUR MORBI

Male Female

Yes 63(63.0) 26(43.3)

No 37(37.0) 34(56.7)

Sample Size 100 60

*Figures in brackets are in Percentage

*Sources of Data: Field work, ,1997-98

145

Male

25(71.4)

1 0(28.6)

35

Female Male Female

21(84.0) 9(42.8) 1(5.0)

4(16.0) 13(57.2) 19(95.0)

25 21 20

Table 5.4

Educational Qualification OfWorkers

TIRUPPUR

Male Female

Illiterate ') (9.0) l (1.7)

Primary 2o (26.0) 13 (21.7)

Middle 42 (42.0) 32 (5:U)

Secondary 23 (23.0) D (21.6)

Higher Secondary - I ( 1.7)

Graduate or technical - -

N. ]()() 60

* Figures in brackets are in percentage * Sources of data, Field work, 1997-98

KANNUR

Male Female

- -

13(37.1) 19 (76.0)

- -

16(45.7) 6 (24.0)

I (2.9) -

5 (14.3) -

35 25

MORBI

Male Female

- -

I (4.8) -

- I 0 (5ti.O)

19(90.4) 9 (45.0)

I (4.8) I (5.0)

- -

21 20

Kannur's handloom industry IS a traditional industry and its skill

acquisition requires practice. The members of traditionai weaver community

families wh0 were involved in weavjng for longer periods of time were

traditionally trained with weaving. However, to become a master weaver and

master dyer it requires experience and practice. This does not mean that for new

entrants it is difficult to enter the job. With practice they can adjust to the demands

of t~e job. In Kannur 25 male workers (71 percent) and 21 female workers (84

percent) reported that they had skills before joining the present job (Table 5.3).

Educational level is higher among Kannur workers than Tiruppur. Almost half of

workers interviewed were High School pass, wheeras 19 out of 25 female workers

(76 percent) just had primary education (Table 5.4). Handloom Industry also does

not require highly educated workers. The entrepreneurs of Kannur told us that

weaving is not considered a high status job (Here we mean to say that there is a

tendency among highly educated people to go in for white collar jobs).

Morbi's clock industry worker have to acquire some technical knowledge.

Since technology is not sophisticated (very few firms make quartz in Morbi),

firms require some kinds of semi-skilled workers. The assembling of quartz needs

a bit skill that can be learned with informal training, apprenticeship and

l-l6

expenence. Cabinet making and glass cutting (done through machines) the

ancillary parts of the clock industry, do not require much skill. However, making

of wooden cabinet boxes for clock requires skill. In fact 9 male workers (42

percent) who responded to us reported that they had skills before joining the

present job. While in the case offemale workers, most ofthem (19 or 95 percent)

responded that they did not have the skill (Tabie 5.3). Most of the male workers

(19 or about 90 percent) mentioned that they had studied till Class X while half of

the female workers who talked to us had been to middle school and other half to

high school (Table 5.4). Since clock industry is a bit technical it demands some

education from the workers than either knitwear or handloom industry. In

Tiruppur, very few workers reported that they had lost job because they were

unskilled. In Kannur and Morbi nobody had reported that they had lost job for

being unskilled (Table 5. 7). This ~emonstrates the demand for labourers in these

towns and the number of extra job these towns have been able to generate.

V.4 Basis of employment: Entrepreneur's view

The sole aim of entrepreneurs is to earn profit and they try to get the best

workforce available in the town. As such they are able to extract maximum work

from the workers. It is seen that very few entrepreneurs give priority for technical

experiences while recruiting labour in all the three towns (Table 5.5). They prefer

experienced one, which is their first priority. Since experienced and skilled

labourers are not available at required numbers in the three towns, entrepreneurs

go in for apprenticeship as their second priority. In Tiruppur out of 57

entrepreneur 55 had reported that they look for experienced workers. Only 2

entrepreneurs had reported that they look for technically qualified workers.

However, 34 entrepreneur told that apprenticeship by the workers is their second

priority as the basis for employment. In Kannur for 12 out of 15 entrepreneurs,

experience of workers is the first priority and apprenticeship by the workers is the

second priority for 11 entrepreneurs. In Morbi, also majority of the entrepreneurs

( 14 out of 15 we interviewed) want experienced workers. Interestingly one had

reported that he recruits workers on personal favour. In Tiruppur and Morbi there

were shortage of skilled workers, while in Kannur this was not the reason.

Preference of people for white collar jobs is more there, than weavers job (as told

147

by the entrepreneurs).

Table 5.5

Management of Workers by the Firms (respondent entrepreneurs) Basis for Employment

TIRUPPUR KANNUR MORBI (i) Technical qualification 2(3.5)PI 2 (13.3 )PI (ii) Experiences 55 (96.5) PI, 13 (86.7) PI, 14 (93.3) PI

1(1.75) PII 2 (6.7) PII {iii} Apprenticeship 31 (54.4) PII 10 (73 .3) PII 13 (86. 7) PII (iv) Personal Favour 1 (6.7 )PI (v) Others

N-57 N-15 N-15

All t~e entrepreneurs in Tiruppur, Kannur and Morbi reported that they

prefer women workers for their firms. They are sought for their manual dexterity

and docile personalities, which can withstand long hours of monotonous and

repetitive work. This is clearly reflected in some most suc~essfu1 clock

manufacturing units of Morbi, like Ajanta and Solar Clock industries. Ajanta is

the largest clock manufacturer in the world. There, except for the managerial staff, ~

all workers are young women. Even the bus driver who transport fernale.workers

from the nearby villages to the factory are women. Ajanta follows a unique system

to recruit the workforce. They send the messages by word of mouth when they

want to rec~it labour. They prefer girls at the age group of 18-20 years. The

management tests their intelligence and accordingly they are send to different

manufacturing sections like quartz making, moulding, assembling, store-despatch

etc, all of which requires different levels of intelligence.

V.5 Effect of Busines~· cycle on worker.-.

Tiruppur, Kannur and Morbi as we know go through a lean season during

particular periods of the year. In Tiruppur and Morbi changes in demand for the

products is the main factor, whereas for Kannur, weather (rainy season) along

. with demand are the causes. Moreover Tiruppur and Morbi follow the just-in-time

(JIT) system (we have discussed about JIT in Chapter IV). JIT has important

implication on labour. Labour has to be flexible because work is done when it is

needed, for the specific order of a stated amount (Sayer, 1986). In Tiruppur it is

seen that majority of male (88 or 88 per cent) and female workers (57 or 95.0 per

cent) reported that they lose their job temporarily during the lean season. In Morbi

16 male workers (76 per cent) reported that they lose jobs during the lean season.

But only 2 female workers ( l 0 percent) reported that they lost job during a

particular time of the year (Table 5.6). Seasonal job loss also depends on which

kind of firms they were attached to. Some firms get constant orders throughout the

year. In Morbi clock Industry, the tendency to retain the female workers is more

for their efficiency. In Kannur nobody had reported that they lost job during a

particular season. Constant demand for handloom even for local market, along

with the role of labour institutions provides tenurial safeguards to the labourers

were mentioned as main reasons. What can we comment from the experiences of

the three towns? Indeed Flexibility may bring vulnerability to workers life.

In Tiruppur there are large incidences of job loss, and workers face a hard

time during the off-season. They have to depend on savings if they manage to

save. No one can agree more that d-aily earning for the wage earners is very

important. Tiruppur workers are not very well paid, that they will try to save from

their earning, despite their life styles (we have discussed this in Chapter III). Most

of the workers had told us that they borrow money during the lean seasons. The

condition in Morbi is also like that of Tiruppur. However, in Kannur even where

there is not much work, a minimum dearness

Table 5.6

Effect of Business Cycle on Workers (Skilled)



No job Loss 12 (12.0) 3 (5.0) 3 5 (I ()().()) ,25( 100.0) 5 (23.8) 18 (90.00

Temporal)' job loss RR (88.0) 57 (95.0) - - 16 (76.2) 2 (IO.o) (seasonal) I

Spell of unemployment 2-3 months

Sample Size: 100 60 35 25 21 20

Table 5.7

Job Loss for Being Unskilled



Yes I ( 1.0) - - - - -No 99 (99.0) 60 (100.0) 35 (100.0) 25 (100.00 21 (100.0) 20 (100.0)

Sample size 100 60

* Figures in brackets are in percentage * Sources of data: field work, 1997-98

35 25 21

allowance is assured to the workers. This is possible because of the presence of a

strong labour union in Kannur. Though there are labour unions in Tiruppur, they

have not been able to do much for all the workers. As in Morbi. labour unions are

discouraged in Tiruppur by the firms. As far possible they try to avoid workers

who are involved in trade unions. In other words, Institutional regulations are very

important for the well being of the workers. DistFibutional (income) issues, which

are vital in the development process are often left out in neoclassical economics

with its preoccupation with the market as the only arbiter in economic activities.

There is increasing recognition that the labour market is the least homogenous and

the most intractable of all markets since it deals with human being located in the

historical context of social institutions. Historically labour institutions have been

instrumental in determining the pace of development and the distribution of

benefits (Kannan, 1992). Unemployment during the off-season may be

complemented by high wages and by paying some subsistence money during the

off-season. Comparative earnings by the workers are shown in the Appendix 5.1.

During our visit to Tiruppur in 1997 we found that workers in cutting,

stitching, ironing and packing were assured of minimum wage of Rupees 47.50.

They get yearly increment of Rupees 9.50 and dearness allowance of Rupees

22.00. So, for them daily wages came to 79 Rupees. Likewise a helper earns about

Rupees 50.00 per day as wages. These rates were fixed by the representatives of

150

20

the trade unions and entrepreneurs for the llext three years. Besides the wages the

workers were entitled to overtime charges and bonus of I 0 to 33 percent of their

wages depending on the type of firm for which they work. In Kannur for weavers

and winders a minimum dearness allowances of Rupees 32 is assured. Weavers

get Rupees 8.00 for weaving of per meter cloth and Winders get Rupees 5.00 tor

per cone winding of threads. Kannur workers get greater bonuses than Tin.tppur

workers, varying from 35 percent to 50 percent. Morbi workers do not get much.

They get Rupees 60.00 per day as per government recommendation. Every year a

worker gets Rupees 12.00 as increment to his wages.

V.6 Firm's Reaction toward (.'hanging Market Demand and Labov.r

Requirements

Most of the firms ( 41 or 72 per cent) in Tiruppur had reported that they

stick to the policy of temporary lay off and recall. Rest of the entrepreneurs we

interviewed told that they kept the same labour force (Table 5.8). In Tiruppur the

whole of labour market is not regulated by institutional and government regulation

with regards to the fixation of minimum wages. So during the off-season if

workers want job, they are paid less. "During peak season we have to look for

labourers and sometime have to agree to whatever the amount they ask for. But

during the lean season the labourers stand in que for jobs. At that time they should

be ready to accept whatever the amount we want to pay" (Manager of a firm,

Tiruppur). This kind ofbargaining is also prevalent in Morbi. But in Morbi half of

the entrepreneurs (8 or 53 percent) we interviewed told that they followed the

temporary lay off and recall procedure, while the rest were able to keep the same

labor force. Subcontracting of work is very much prevalent in Tiruppur, especially

when one exporter gets a bulk order for export. In Kannur when firms get large

assignment which is beyond their capacity to handle, they assign their work to

some home workers or to the cooperatives.

151

Table 5.8

Firms Reaction Towards Changing Market Demand and Labour Requirement

(i)TemQ_orary lay off and recall (ii) Works are subcontracted out (iii) Use of Labour Force for other

purpose (iv) Wage rate cut down (v) Keep the same labour force (vi) Unskilled are left out (vii) Transfer labour to a friendly

firm

Note: * means when there are more works * * means when there are less works # Figures in brackets are in percentage

# Sources of data: field work, 1997-98

V. 7 Labour Market Security

TIRUPPUR KANNUR

41 (71.9) -2 (3.5*) 4(26.7*}

-

6 (10.5**) -16(28.1) _(100.0_1

--

N-57 N-15

MORBI 8(53.3)

--

-7 (46.7)

--

N-15

Apart from the seasonal job loss, we asked workers a few questions about

internal and external flexibility of their job. Whether they were guaranteed a

particular job in the firm (job security), guaranted employment in different jobs

(employment security), and guaranted employment in labour market (labour

market security). Most of the workers in all three towns reported that they are

generally guaranted with a particular job. If they stick to a particular job then it

enhances their efficiency that the employers want. Since jobs in Tiruppur and

Kannur are semi-skilled and workers tend to easily acquire different skills, they

are sometimes trusted to do other kinds of jobs i.e. a tailor may be asked to cut the

cloths. This was not seen in Kannur because for a winder it is difficult to do

weaving and weavers may not be interested to do the winder's job as this yields

lower wages. In Tiruppur's knitwear industry and Morbi's clock industry, there

are some segments of work that yield almost the same level of wages to workers

(Appendix 5.1 ). However, there are no tensions among the workers because of

income variations (Table 5 .I 0). All workers accept that they are paid according to

their working capacity. Tiruppur workers were confident that they can easily find

a job in the labour market. This was true of Kannur and Morbi male workers.

More than 95 percent of workers irrespective of gender in all three towns reported

that they feel secure of their jobs. In Tiruppur, 44 males and 29 females ( 48

percent) reported that they were sometimes asked to do other kinds of jobs during

the lean season (employment security). Such shifting in jobs is not the case for

Kannur. Only 2 male workers had reported this kind of job shifting in Kannur. In

Morbi 5 male workers (24 percent) and 3 female workers ( 15 percent) reported

that sometimes they were asked to do other kind of jobs (Table 5.9). In the

cooperative sector in Kannur access to job is difficult. If one worker belonged to a

particular trade union, which has under power in the cooperatives only then can

they expect a job.

Table 5.9

Labour Market Security (Apart from Seasonal Job Loss)


Male Female

Job Security 100 59 (100.0) (98.3)

N-100 N-60

Employment Security 44 29 (44.0) (48.3)

N-100 N-60

Labour Market security 99 52 (99.0) (86.7)

N-100 N-60

*Figures in brackets are in Percentage * Sources of data: field work, 1997-98

Male

34 (97.1)

N-35

2 (5.7)

N-35

30 (85.7)

N-35

Table 5.10

Female Male

25 20 (100.0) (95.2)

N-25 N-21

0.0 5 (23.8)

N-25 N-21

10 21 (40.0) (100.0)

N-25 N-21

Income Variations and Social Tensions Among Workers

Female

19 (95.0)

N-20

3 (15.0)

N-2Q

10 (50.0)

N-20



Yes - - - - - -

No 100.0 100.0 IOO.O 100.0 100.0 100.0

Sample size 100 60 35 25 21 20

* Figures are m percentage * Source of data: field work, 1997-98

153

We asked another question to the workers in the towns- do they have the

capacity to shift job at their will. Most of the Tiruppur workers (99 male and 54

female) said 'yes'. In Kannur only 19 male workers (54 percent) and 7 female

workers (28 percent) expressed their capability to shift their jobs in the labour

market. In Kannur job market, particularly in the cooperatives are controlled by

the unions and they have major role to play in recruiting a worker. In Morbi 14

male workers (67 percent) and 3 female workers (15 percent) reported that they

have the capacity to shift job in the town at their will (Table 5.11). In Morbi

though sufficient number of jobs are available yet the entrepreneurs prefer to keep

the female workers because of their capacity to withstand long working hours. Yet

we found that the level of confidence of female workers to find a job is rather low.

Probably they do not dare to venture to search for jobs like the male workers.

Moreover, most of the female workers had reported that they get job information

from their family and relatives.

Table 5.11

Personal Skill and Capacity to Shift Job

. TIRUPPUR KANNUR

Male Female Male

Yes 99 54 19 (99.0) (90.0) (54.3)

No I (1.0) 6 (10.0) -Cannot Say - - 16 (45.7)

Sample size 100 60 35

* Figures in brackets are in percentage * Source of data: field work, 1997-98

Female

7 (28.0)

-18 (72.0)

25

MORBI

Male Female

14 3 (66.7) (15.0)

- -7 (33.3) 17 (85.0)

21 20

In Tiruppur and Morbi, workers informed that learning of new skills

certainly assured jobs. Entrepreneurs invariably try to retain the best skill even

during the lean season. However, majority of Kannur workers (28 or 80 percent

male and 22 or 88 percent female) with whom we had interacted told that learning

ofnew skills do not help.(Table 5.12). Kannur handloom industry is so traditional

that, weavers from the traditional family can easily cope with the required skills.

15-l

Weavers Service Centre at Kannur provides some training particularly in the field

of textile designs, but financial incentives are not much to attract the weavers.

Table 5.12

Learning of New Skills Assure Job



Yes 100 60 (100.0) (IOO.o)

No - -Cann't Say - -Sample size 100 60

*Figures in brackets are in percentage * Source of data: field work, 1997-98

6 3 21 20 (17.1) (12.0) (100.0) (100.0)

28(80.0) 22 (88.0) - -I (2.9) - 7 (33.3) -

35 25 21 20

What the workers do when they lose . jobs? Workers of Tiruppur and

Morbi generally wait for a call from the firms. During that time Tiruppur workers

look for casual or any other kinds of work. Most of the male workers of Morbi (15

or 71 per cent) also look for casual or any kind ofjobs. Many workers in Tiruppur

knitwear indusrty go back to their homes to work in the agricultural fields. Lean

season of Tiruppur knitwear industry corresponds to the monsoon season. No

. Table 5.13

Job Loss What Workers Do

TIRUPPUR KANNUR MORBI Male Female Male Female Male Female

No job loss 12 3 35 25 6 18 (12.0) (5.0) (100.0) (100.0) (25.8) (90.0)

Learn new skill 5 (5.00) 15(71.4) Wait for a call and 88 (88.0) 57 (95.0) - 2 {1 0.0) Looks for

6 (6.8). 4 (7.00) 3 (20.0) -(i )permanent salaried work (ii) self employment 12 (13.6) 3 (5.3) - -(iii) casual work 20 (22. 7) 16 (28.1) 6 (40.0) 2 (100.0) (iv) any work 50 (56.3) 34 (59.6) 6 (40.9) -Sample size 100 60 35 25 21 20

* Figures are in percentage * Sources of data: field work, 1997-98

worker from Kannur reported that they lose jobs during any part of the year (Table

5.13). Implications ofthis issue shall be taken up in the conclusion.

V. 8 Employment Benefit

We had asked the labourers of Tiruppur. Kannur and Morbi whether they

enjoy the schemes like Bonus, Provident Fund, ESI Benefit, Gratuity, Housing

and Paid Holidays?

Most ofthe workers we interviewed in Tiruppur reported that they receive

bonus. Altogether 44 male and 39 female (65 per cent) workers reported that they

received Employees State Insurance (ESI) Benefit. Majority of the workers (72

male and 49 female) reported that they enjoyed paid holidays (Table 5.14 A-C-F).

However, all workers in Tiruppur had reported that they do not receive provident

fund, gratuity and housing facilities.

In Morbi very few proportion of workers received. bonus, provident fund

and ESI Benefit. From our sample of 21 male and 20 female workers, only 3

males {14 percent) and 4 females (20·percent) reported that they received bonus.

Altogether 6 male workers (about 29 percent) and 2 female workers (10 percent)

reported that they have provident fund facilities. Again 6 male workers and 2

female workers reported that they received ESI benefits. No workers reported that

they received housing facilities. Though it was noticed that some big firms like

Ajanta and Scientific, provide housing to few workers. Workers do not get

gratuity in Morbi. However, in firms like Ajanta where about 2000 female worker

were employed, they get some form of gratuity when they leave the firm for

reasons such a5 marriage and they are not replaced. They get cash and gifts for

their marriage as well. This incentive attracts many female workers to Ajanta

clock industries. There are no wage differences between male and female workers.

156

Table 5.14 Employment Benefits

Table 5.14.A

Received Bonus



Yes 94 (94.0) 58 (96.7) 35 25 3 (14.3) 4 (20.0) (100.0) (100.0)

No 6 (6.0) 2 (3.3) - - 18 (85.7) 16 (80.0)

Sample Size 100 60 35 25 21 20

Table 5.14.8

Received Provident Fund

TffiUPPUR KANNUR MORBI Male Female Male Female Male Female

Yes 6 (6.0) 35 25 6 (28.6) 2 (8.0) . (100.0) (100.0) No 94 (94.0) 60 - - 15(71.4) 18 (92.0)

( 100.0) Sample Size 100 60 35 25 21 20

Table 5.14.C

ESI Benefit


Yes 44 39 32 25 6 2 (44.0) (65.0) (91.4) (100.0) (28.6) (8.0)

No 56 21 3 - IS 18 (56.0) (35.0) (8.6) (71.4) (92.6)

Sample Size 100 60 35 25 21 20

Table 5.14.0

Gratuity


Yes - - (I 00.0) ( 100.0) - 12 (60.0) No (I 00.0) ( 100.0) - - (100.0) 8 (40.0) Samgle Size 100 60 35 25 21 20

!57

Table 5.14.E

Housing and Electricity


Yes - - - - - -No {100.0) (100.0) (100.0) (100.01 _(100.0) (100.0) Sam_Qle size 100 60 35 25 21 20

Table 5.14.F

Paid Holidays



Yes 72 (72.0) 49 (81.7) (100.0 100.0) ·s (38.1) 14 (70.0)

No 28 (28.0) 11 (18.3) - - 13 (61.9) 6 (30.0)

Sample size 100 60

*Figures in brackets are in percentage

* Sources of data: field work, 1997-98

35 25 21

Most ofthe workers in Kannur had reported that they get almost all kinds

of benefit like bonus, ESI, provident fund, gratuities and paid holidays (Table

5.14). Workers in cooperatives generally got bonuses upto 50 per cent, while

private firms provided upto 35 per cent bonus. We were told that after retirement

· or voluntary retirement many Kannur weavers with their provident fund and

gratuity money purchase looms and starts their own job working business. In

Tiruppur too we had noticed some small job working firms run by persons who

earlier used to work for other firms. Such 'worker to owner' transformation was

not noticed in Morbi. In Tiruppur with the advent of new international

technologies in the knitwear industry old machines were becoming obsolete.

These were generally used in the lower end of the market for the production of

cloth for the local market. Many workers with their savings buy these machines

and start their own business. In many job working firms of Tiruppur and Kannur

owners supervise the work and as well as work along with their workers.

15X

20

I

I

In Kannur strong labour unions enable the worker to enjoy most of the

benefits. Though in Tiruppur labour unions now started to put pressure on the

entrepreneurs for higher dearness allowances and other benefits they have not

been able to do much (Appendix 5.1 shows the negotiations and bargaining on

wages by exporters and labour unions). During peak season in Tiruppur there is

deficient of workers and during the lean season there is surplus workers. During

the peak season the union can put pressure on the owners of the firms for better

wages and benefits. Good wages reflect 'high road' path of development in an

industrial district. We shall take up this issue in the conclusion of this chapter.

Though there is no strong and active labour unions in Morbi, some firms were

providing benefits to some workers who had worked in the firm for a longer

duration.

V.9 Humane Working Conditions

Fixed working hours, rest hours, facilities of canteen, recreation room and

toilets, are essential for a good and unexploitative working environment. We had

asked the workers in the three towns whether they enjoy these facilities. Though

in Tiruppur working hour ~s fixed for 12 hours a day and six days a week, during

the peak season workers are engaged for 20 hours a day seven days a week. We

did not find any evidence in Kannur and Morbi of overtime even during the peak

season. All workers in the three towns reported that their work hours were fixed

(Table5.15A). In Tiruppur only one worker had reported that he has no fixed

working hours.

Table 5.15 Humane Working Conditions

Table 5.15.A

Hours of Works Fixed

TIRUPPUR KANNUR MORBI Male Femaie Male Female Male Female

Yes 99 (99.0) ( 100.0) (100.0) (I 00.0) (100.0) (100.0) No I ( 1.01 - - - - -Sample size 100 60 35 25 21 20

15CJ

Table 5.15. 8

Rest Hours



Yes (100.0) ( 100.0) (I 00.0) (100.0) ( 100.0) (100.0)

No - - - - - -

Sample Size 100 60 35 25 21 20

Table 5.15.C

Canteen



. Yes I (1.0) - 12 (34.3) 8 (32.0): - -

No 99 (99.0) ( 100.0) 65.7 17 (68.0) (100.0) (100.0)

Sample size 100 60 35 25 21 20

Table 5.15.0

Recreation Room



Yes - - 2 (5.7) 1 ( 4.0) - -

No (100.0) ( 100.0) 3 3 (94.3) 24 (96.0) (l 00.0) (100.0)

Sample Size 100 I 60 35 25 21 20

((,()

Table 5.15.E

Toilet



Yes (100.0 100.0) {l 00.0) (100.0) 16 (76.2) 15 (75.0)

No - - - - 5 (23.8) 5 (25.0)

Sample size 100 60

*Figures in brackets are in percentage * Sources of data field work, 1997-98

35 25 21

All workers in the three towns enjoy rest hours in between their work.

Generally they get a number of breaks for tea and lunch. Tiruppur workers get

·half an hour lunch break and few tea breaks in between. Workers in Morbi get two

hours lunch break. In Kannur also workers get a good one hour lunch break (Table

5.158).

Canteen and recreation facilities are not enjoyed by the most of workers in

the towns. In Kannur 12 male workers (34 percent) and 8 female workers (32

percent) reported that they enjoy canteen facilities (Table 5.15C). Only in Kannur

again very few workers had reported that they enjoy recreation room facilities i.e.

library (Table 5.150). In Tiruppur and Kannur workers reported that they enjoy

common toilet facilities. However, in Morbi some workers (5 male and 5 female

in total) reported that they do not have toilet facilities in their work place (Table

5.15E). Kannur weather is much pleasant for work than hot and humid Tiruppur

and Morbi. Kannur firms are more spacious than Tiruppur and Morbi. Yet we

noticed that Tiruppur and Morbi people are extremely hardworking.

V.l 0 Employee-Employer Relations

For a smooth functioning of the firm and the cluster, a congenial

relationship is desired between employees and the employer. Unionism is not

· desired by the employer and is a major source of dispute between the employee

and employer. The workers were queried on few questions regarding

161

20

relationships, problem sharing regarding the functioning of the firms, decisions

regarding . the working hours, incentives given by employer to his employee,

employers concern for the workers regarding their skill formation, flexibility of

time given to the female workers and confidence of workers to remain employed

in the firm.

No entrepreneur shares problems regarding the functioning of the firms

with the workers nor are the workers much interested. But few exceptions in

Tiruppur can be observed in some small firms and in the cooperatives of Kannur.

In Tiruppur and Kannur half of the workers interviewed reported that they discuss

among each other and home insiders knowledge about the firm (Table5.16A). Out

of 100 male workers in Tiruppur 58 reported that they discuss among themselves

what is going on in the firm or in the industry. A considerable proportion of

female workers (29 or about 48 percent) said 'yes' to this. In Kannur 23 mate

workers (about 66 percent) and 11 female workers (44 percent) reported that they

discuss among each other what is going on in the firm or in the industry. In Morbi

female workers do not discuss with each other about. the industry, while a few

male workers (4 in total or 14 percent) said' yes' to this question.

Table 5.16 Employee-Employer Relations

Table 5.16.A

Share Different Problems in the Functioning of the Firm (Concern for the Firm, Respondent Workers)



Yes 58 (58.0) 29 (48.3) 23 (65.7) 11 (44.0) 4 (19.0) (0.0)

No 42 (42.0) 31 (51 J) 12 (34.3) 14 (56.0) 17(81.0) (100.0)

Sample Size 100 650 35 25 21 20

l(o2

Table 5.16.8

Working Hours Decided b~· (Res,,ondent Workers)



Entrepreneur l ( l. 0) l ( l. 7) - - (100.0) (100.0)

Employee - - - - - -Negotiated by both 99 (99.0) 59 (98.3) (100.0) (100.0) - -Depends on demand * * - - - -Others - - - - - -

Sample size 100 60 35 25 21 20

Table 5.16.C

Belong to Trade Unions (Respondent Workers)



YES 75 (75.0) 28(46.7) 30 (85.7) 20 (80.0) - -NO 25 (25.0) 32 (53.3) 5 (14.3) 5 (20.0) (100.0) (100.0)

Sample Size 100 60 35 25 21 20

Table 5.16.0

Attend Union Meetings



YES 35 (46 7) 9 (32.1) 23 (76. 7) 8 (40.0) - -

NO 40 (53.3) 19 (67.9) 12 (23.3) 12(60.0) - -

Sample Size 75 28 30 20 0 0

161

Table 5.16.E

Affected By Unions or By Economic Incentives of Employer



Affected by unions 27 3 (5.0) 10 (28.6) - - -(27.0)

Economic Incentives by 2 (2.0) 1 (l. 7) 4 (11.4) 5 (20.0) 6 (28.6) 9 (45.0) employer

Not affected by anyone 71 56 (93.3) 4 (11.4) 3 (12.0) 15 (77.4) II (55.0) (71.0)

All according to rule - - 17 (48.6) 17 (68.0) - -No Remarks - - - - - -Sample Size 100 60 35 25 21 20

Table 5.16.F

Confidence about Job Safety



Yes 95 (95.0) 55(91.7) 34 (97.1) (100.0) (100.0) 17(85.0)

No 3 (3.0} 4 (6.7) 1(2.9) - -Can't say 2 (2.0) I (1.6) - - -Sample size 100 60 35 25 21

Working hours in Tiruppur and Kannur is decided by negotiation between

the labour unions and the manufacturers associations. In Tiruppur a few (only two

in total) had reported that their working hour is decided by their employer. It is

possible that in some firms, if workers need job desperately employers are in an

advantageous position to bargain. In Morbi entrepreneurs have the say in deciding

· the working hours (Table 5.16-B). Which is from morning 8 A.M. to I P.M. and

then from 3 P.M. tb 6 P.M.

164

15.0

-20

Most of the workers in Kannur informed that they belong to trade unions.

Out of 35 male and 25 female workers, 30 males (86 percent) and 20 females (80

percent) reported that they were members of trade unions. In Tiruppur 75 male

and 28 female workers (46 per cent) reported that they were members of trade

unions. In Tiruppur one trade union leader told us that only I 0 per cent of the

workers have membership of trade unions. In Morbi only one trade union exits

(Majoor Mahajan Sangh), but they have no workers from the firms in the private

sector as its members.

Workers concern for umomsm was generally lukewarm. In Tiruppur

among the member respondent, very few (in total 35 male or 46 per cent and 9

female or 32 per cent) attended union meetings. In Kannur 23 male workers (76

per cent) told us that they attend union meetings (Table 5.16-D). On the question

whether workers efficiency to do work was affected by unions or by economic

incentives of employer, 27 male workers in Tiruppur and I 0 male workers (28 per

cent) in Kannur reported that they were affected by unions. Most of the workers

are not affected much by incentives from entrepreneurs (Table 5 .16-E). Tiruppur

workers told us that they are not affected by anyone, whereas Kannur workers get

their due as per the rules laid down. Morbi workers told us that they were also not

affected by anyone, but some female workers (9 in total or 4-5 per cent) were

affected by the promise of economic incentives from their employers.

It is not always that unions are run on philanthropic attitude. Rather they

are run by the self-interest of their leaders who were controlled by political

parties. It is the entrepreneur who gives bread to the workers not the union leaders.

If workers are satisfied with the wages and work hour is not too long, then they

have nothing to do with the unions. Workers are generally influenced by this

attitude and so their concern for unionism is lukewarm. It is not that unions are not

effective in Tiruppur. It was only since 1985, that Tiruppur is experiencing an

export boom whereby more jobs are being created and the trade unions have

recently started taking interest for the well being of the workers. On the other

hand Kannur has a long history of trade union movement. We shall discuss the

role of institutions i.e. trade unions and their role in the wellbeing of workers in

the conclusion of this Chapter.

165

Most of the workers in the three towns reported that they are confident

about their job safety (Table 5.16-F) Only 3 male workers and 4 female workers

(about 7 percent) reported that they do not feel confident about the safety of their

jobs. In Kannur only one male worker and in Morbi 3 female workers had

reported this to be true

None of the workers received any formal training from the entrepreneurs

and there were no such future opportu~ities in the three towns. We have already

discussed that jobs in Tiruppur and Morbi are semi-skilled and do not need much

training, except for the few highly skilled jobs performed by -master dyers and

embroidery works in machines etc. in Tiruppur and quartz watch making in

Morbi. Being from traditional weaver family, Kannur workers do not feel the need

of training.

V.ll Child Labourers of Tiruppur

The Factories Act 1948 defines a 'child' as a person who has not

completed his/her fifteenth year of age. The Act prohibits employment of child in

any factory. In contrast to other two towns of our study, child labour is prevalent

in Tiruppur. Given that Tiruppur now has to cater for larser demand from both

national and international market, so the demand for labour is ever increasing.

There is shortage of labourers in Tiruppur during the peak season. Moreover, poor

economic conditions of nearby villages compel parents to send their children to

work. Entrepreneurs do not mind if child workers are going to be of some help for

them. Child workers of Tiruppur give only a helping hand to cutting and sewing

section, which does not require any skilL So, they get easy entry to the knitwear

industry of Tiruppur. Here the child labourers are not employed in knitting,

bleaching, dyeing, printing and embroidery sections. These jobs need some

experienced and skilled hands. Moreover, there is no risk of accident in the jobs

done by the child labourers.

Daily earning of children is not bad. A skilled worker earns about Rs.80 to

l 00 per day, whereas a child earns almost equivalent to a unskilled adult worker.

They earn about 40 rupees for a days work of 12 hours. So in a six day week

166

every child brings home 240 rupees. If there are two children from a house, the

household earning would double. One entrepreneur told us that apart from the

parent's earning, children's earnings are considered as bonus, so many parents

from nearby villages encourage their children to work rather than to ·study.

Poverty is the main reason that compels a child to work. Earning from agriculture

is not enough to sustain a family in the nearby regions of Tiruppur because of

water crisis. Again education for the children is not a priority for the poverty

stricken parents. In the factory where child labourers work no outsiders are

generally allowed to enter those factories. Whenever factory inspectors and NGO

people come, it is reported that the management locks all children in a room.

Since the children require jobs and money they keep quiet to get rid of the factory

inspectors or NGO representative.

In our interaction with 40 children in Tiruppur (20 male and female each)

regarding their entry to jobs, education. skill and job security we had a diverse set

of responses. There were no child worker in Kannur and Morbi.

Child labourers get into the jobs through their family, relatives and friends.

Family members and friends ask the entrepreneurs whether they need any extr.a

hands. Most of the times particularly during the peak seasons firms have

additional work and they require people. Proportion of child male workers getting

into the job through family and relations is quite high (14" in total or 70 per cent,

Table 5.17 A), as compared to female child workers (9 in total or 45 per cent). It

looks surprising that female child workers get into the jobs through direct visit (6

or 30 per cent) or they know the entrepreneur personally (5 or 25 per cent). Such

entries are possible if they reside by the small sized firms. Tiruppur knitwear

industry has now spread out into the outskirts of the town. Moreover, many small

sized firms are operating from within the neighboring set of houses. As a result,

Child labourers have information about job availability in the nearby household

firms.

167

Table 5.17 Child Labourers ofTiruppur

Table 5.17.A

Labour Market Information System for Child Workers

JOB ACQUISATION MALE FEMALE THROUGH :

(i) Personal contract 2 (10.0) 5 (25.0)

(ii) Advertisements - -(iii) Family and Relations 14 (70.0) 9 (45.0)

(iv) Direct visit to firms 2 (10.0) 6 (30.0)

(v) Others 2 (10.0) -

Sample size 20 20

Table 5.17.B

Child Labourers-Skill before Joining the Present Job

MALE FEMALE

Yes 2 (10.0) -No 18 (90.0) (100.0)

Sample size 20 20

Table 5.17.C

Educational Qualifications of Child Workers

MALE FEMALE

l11iterate 4 (20.0) 2 (10.0)

Primary 15 (75.0) 18 (90.0)

Middle I (5.0) -

Sample Size 20 20

168

Table 5.i7.D

Effect of Business Cycle on Child Labour

MALE FEMALE

No job loss 0.0 0.0

Temporary job loss (seasonal) (1 00.0) (I 00.0)

Sample Size 20 20

Table 5.17.E

Labour Market Security for Child Labourers

MALE FEMALE

Job security 6 (30.0) 6 (30.0)

Employment Security (0.0) (0.0)

N-20 N-20

Labour Market Security 1 (5.0) 1 (5.0)

N-20 N-20

Table-5.17.F

Job Status of Tiruppur Child Labourers

MALE FEMALE

Yes No N.A Yes No N.A Job Loss for being unskilled 9 (45.0 11 - 10 10 -

(55.0 (50.0 (50.0 Learning new skills to ensure (100) - - (100) - -job

Personal skill and ability to - - (100) - - (100) shift job

Do income variation among - (100) - - (100) -them create tension N-20

169

Table 5.17.G

Durin~ Job Loss What Do Child Workers Do

MALE

Learned new skills 4 (20.0)

Wait for a call and look for (100.0)

(i) permanent salaried -(ii) self employment -(iii) casual work 3 (I 5.0)

(iv) any work 7 (35.0)

(v) sit at home 10 (50.0)

N-20

# All figures in brackets are in percentage # Sources of data field work, 1997-98

FEMALE

7 (35.0)

(1 00.0)

-

--

13 (65.0)

7 (35.0)

Child labourers are not employed in any segments ofthe knitwear industry

which are a bit technical or difficult, like knitting, bleaching, dyeing, printing, etc.

They are employed generally as a helper in the cutting and sewing section, which

does not require much skiU. Being associated with this section they in course of

time learn the skill. Most of the child labourers reported that they had skills before

joining their job (Table 5.17 B). It is the poor economic conditions of their

families that pushed the child labourers to work. Moreover, now given such an

environment, earning gives them more pleasure than to study. Few had reported

that they are no good at studies and so want like to work. However, most of them

( 15 male and 18 female) had been to primary school (5.17 C). Lean business

season of Tiruppur affects the child labourers. During that season most of the

child workers either do less amount of work or lose jobs. In our sample, all had

reported that during lean season they lost their jobs for few months (Table 5.17

D). Child labourers in Tiruppur do not feel secure about their jobs. Only 6 each of

male and female child workers reported they feel secure about their jobs. They do

not have any employment security and they are not employed in any activity other

than as helper in cutting and sewing segment. They do not feel that, they could

claim or take up to jobs at any time in the Tiruppur labour market (Table 5.17 E).

170

Apart from the seasonal job loss, most of the child labourers lose their jobs for

being unskilled (altogether 9 males and I 0 females reported this to be true, Table

5.17 F). All of them agree that they have to be skilled to ensure their job in the

labour market. On the question regarding their present personal skills and ability

to shift job to other firms at will, all of them said that they did not try this or were

not confident to undertake sucha step. All of these indicate that the job status of

Tiruppur child workers is rather low. They are just used as filler when there are

needed.

What is the response ofthe child labourers when they lose their jobs? All

of them wait for a call from the firms (Table 5.17 G). Most of the male children

either stay at home or do casual or any other kinds of work. It was surprising to

see as compared to male child only a small segment of female children stayed at

home. As compared to I 0 male children only 7 female children reported that they

stayed at home. Rest went in for other kinds of work. Tendency to learn new skills

is more among the female child. Only 4 male child workers reported that they

learn new skill when they lose jobs whereas 7 female child workers r~ported that

they learn new skills when they lose jobs.

At present, Tiruppur Exporters Association (TEA) has resolved to totaily

eliminate child labour from Tiruppur knitwear industry. Their target is to abolish

child labour by the end of 1998. TEA has distributed "No Child Labour

Employed" boards for display in front of the unit, to those member units who have

given undertaking to the TEA that no child labour will be employed in their unit.

However, it is not possible for TEA to enforce this restriction to those units who

are not members of TEA. Especially now TEA has come under pressure from

many international buyers, that they were not going to buy any products produced

with the help of a child. All these buyers make periodic, surprise visit to the units,

including the job working units to check whether child labour was employed. If

they find units which are supplying garments to them employing child labour they

immediately cancell the orders.

TEA has started campaign against the abolition of child labour with the

help of various associations and service organisations in Tiruppur. What will be

171

the effects of this abolition on the economy of poorer family, and future

accumulation (Development of human resources, through good education and

training)? TEA and other voluntary organisations have not come out with a plan

for the well being of the child labourers who are going to be displaced. Instead of

creating a band of competent human resources through the TEA public school

(TEA is spending a lot of money on it), TEA could have provide vocational

training and alternative schooling for the child workers.

One feels awkward that in a prosperous Industrial District like Tiruppur

child labour exists. It is also surprising that a country which is not able to provide

jobs to millions of surplus workforce, Tiruppur is like a island of prosperity able

to generate more jobs than its own working population. Cawthorne (1995)

remarked Tiruppur is a class1c example of sweating of labour. However, if the

adult population were to earn more they could prevent their children from working

at an early age in lieu of education. We also have found that comparative earning

of Tiruppur is less than Kannur, but more than Morbi. Yet Morbi has no child

labour.

VI. 6 Conclusion

The towns (Tiruppur, Kannur, and Morbi) have able to create enough jobs

in their specific industries by exploring market niches for their product. (About

the market for the products of our study towns, we have addressed in chapter IV

and VI). There are two cases that emerge from our study. In Case I -towns have

created jobs through active versatility. This can offer two conditions for the

workers-

(i) Innovative and skilled workers, highly paid jobs and better working conditions

(Flexible Specialisation)

(i) Low paid jobs and bad working conditions (exploitative conditions).

Employers shall try to extract maximum from the workers at minimum

cost- unless workers interests are represented by some strong institutions

(Government or trade unions).

In Case II, we assume that, towns have created jobs through pass1ve

172

pliability. This can offer one condition to the workers - low paid jobs and bad

working conditions. Role of institutions will be different in Case 11. Here it is

believed that cost cutting (passive pliability) will boost the productivity and profit.

Till this point only firms should adopt the cost_ cutting strategy. Once profit comes

firms must adopt the 'active versatility' strategy. Role of institutions here is to

turn the low road path to flexible specialisation to 'high road'. A High road, which

is based on skilled and polyvalent labour force, where workers also have the

capacity to turn passive pliability to active versatility by producing excellent

quality products. High road is based on efficiency enhancement and innovation,

which makes economic gains and so wage gain feasible. Here some extra push

from the institutions is required.

From our empirical study of the towns, we have seen that conditions of

workers are better in Kannur than in Tiruppur and Morbi. We have seen that in

Tiruppur and Morbi, labour market flexibility clear away unemployment except

for a brief season. We have also seen that Trade Unions are strong in Kannur than

in Tiruppur and no such institutions exit in Morbi. Kannur was able to create

market niches for its handloom products, though handloom is not much in .demand

and is a costly substitute to other types of clothings. Still handloom industry of

Kannur was able to pay better wages to its workers (Appendix 5.1). We have

termed that Kannur production is taking a form of a 'active versatility.' As we

have mentioned in the Chapter III, Kannur has a typical case of handloom

cooperatives apart from the private firms. Though wages in the cooperatives and

in the private firms are same, cooperatives give more bonus to the workers than

that of the private firms. Workers in the cooperatives get bonus upto 50 percent as

compared to maximum 35 percent in the private firms. Very often it is argued that

cooperatives maximise earning per worker and so reduce surplus for

accumulation. However, the management of the cooperatives refute the allegation

by saying that surplus earning of the private firms go for investment in personal

luxurious items. In Chapter Ill we had mentioned that handloom cooperatives are

running under losses and most of them are under liquidation. From our personal

observation at Kannur, it is the management of the firms or cooperatives that

matter most than to provJsJon for high or low wages and its effect on

accumulation. We saw few cooperatives were doing very well and one of them

even started exporting to the international market.

Tiruppur was able to create market niches through active versatility and

some market from passive pliability (Chapter IV). Yet workers were not getting

very good wages. This is a example~of 'classic sweating.' and labour sweat shops '

(Cawthorne, 1995). This is also reflected by the presence of child labour. So we

see that Tiruppur follows a 'low road', despite the presence of trade unions and

government regulations. Morbi case is similar to Tiruppur. There are no active

labour institutions and workers get only a minimum wage as determined by the

government.

However, we are not gomg to compare the working standards with

Western industrial world. The main thing we wanted to argue was the role of

institutions for the well being of workers in an industrial space. Kannur showed by

the example how institutions (trade unions) can be housed in a competitive

economic environment.

What can be an ideal condition m the context of our study towns?

Exploring market niches, all towns have been able to create -demand and jobs for

their industries, except during periods of lean season. Following Kannur's

example we propose an ideal situation. Good payments for workers through

institutional interventions for 9 to 10 months and pay holiday or possible

minimum dearness allowances for 2-3 months. We believe good payments or

wages to workers can lead to a 'high road' of development and make them more

confident and efficient in an industrial space. Exploration of market niches shall

always be the prime factor. Labour market flexibility with strong institutions can

be effective. However, without support from any institutions, for the well being of

workers would leads to a 'low road' path of development.

174

APPENDIX 5.1

WAGES OF LABOURERS IN TIRUPPUR, KANNUR AND MORBI

* Workers are paid both on wage rate and piece rate basis in the three towns. Here in tables we have mentioned only the prevailing wage rates.

TIRUPPUR

TyQe ofworks Minimum Yearly Dearness wages Increment allowance (Rs.) (Rs.)

Cutting, Tailoring, 47.53 9.50 Iron and packing

Checking 27.15 5.43

Helpers 23.77 4.75

* Apart from wages they are paid 10 to 33 percent bonus. Work for 12 hours Source CITU, Tiruppur1997.

KANNUR

Dearness Allowances

(Rs.)

22.11

22.11

22.11

Weavers DA Rs. 32 + Rs. 8 for per mt weaving + 3 5 to 50 per cent + bonus and incentives

Winders DA Rs. 32 + Rs. 5 for per cone winding+ 35 to

* * *

MORBI

50 per cent bonus and incentives

An average weaver can weave about 8 meters cloth in a day's work. An average winder can make 6 cone of thread per day. Source CITU, Kannur 1997.

Minimum wages Increment All woJ>kers Rs. 60-62 per day as per Rs. 12 per

government recommendation year.

Source: Majoor Mahajan Sangh Morbi 1998.

175

Total

(Rs.)

79.14

54.69

50.63

CHAPTER-V Labour Market of Tiruppur, Kannur and Morbi...

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