Why not hire our own people working in the Gulf?? - Indian Real Estate Forum

hema · 05-11-07

India’s growth story has thrown up immense job opportunities for expat and NRI managers, pilots and other high-salaried professionals, so far. Now it’s the turn of cheap and skilled labour from outside India to participate in the growth story. Companies have already started hiring or plan to hire such labour in thousands.

India’s biggest real estate developer, DLF, plans to bring 20,000 Indian labourers from the Middle East back home to work for its projects. This follows the move made by Reliance Industries, which hired nearly 4,000 Chinese workers to lay a gas pipeline in the country.

DLF Laing-O’Rourke, a joint venture between DLF and UK-based real estate company which undertakes construction work for DLF in India, wants to hire skilled labourers such as carpenters, bar benders and electricians from China, Indonesia and Philippines. “Chinese labour comes at a low cost and is more productive. Plus, they can be used as captive resource,” says a DLF official who didn’t want to be named.

But the UPA government, surviving on support from pro-labour Left ally, has been reluctant in issuing visas. So, the company is now focussed on bringing back Indian labourers working in the Middle East.

“There’s a large Indian workforce in the Middle East including in projects executed by Laing-O’Rourke. Some workers may be wanting to relocate to India and we could look at the possibility of absorbing them in our projects here,” said DLF Laing O’Rourke India director, JK Chandra. DLF didn’t give out numbers officially but a senior official, who didn’t want to be named, said it could be close to 20,000.

If the plan goes through, it could be one of the biggest homecoming for Indian labourers, who for the past three decades have been working in Gulf countries to earn higher wages under difficult conditions. DLF’s move holds the promise of a better life for these labourers, who are seen as the least beneficiary of India’s economic reforms.

DLF plans to match wages and perks the workers currently earn in the Middle East. They would be brought on the rolls of the company, a departure from the current practice where most construction companies source labourers from labour contractors.

At the mercy of labour contractors, workers generally earn very little, less than what the company forks out to the contractors. RIL, India’s largest private sector company, already has 4,000-strong Chinese workforce working for its gas pipeline project and Jamnagar Refinery.

RIL spokesperson declined to give details on the matter, but a company official, who didn’t want to be named said, “Chinese workers have been working on the company project for the past couple of months. These skilled and semi-skilled workers have earlier executed a similar project in Russia. Lack of experience in domestic market prompted us to get workers from China.”

RIL wants to hire many more workers from China. It is also eyeing welders and other low-skilled workers from Indonesia and Philippines. But its plans have been frustrated by the government’s reluctance to issue visa to these workers.

A DLF official says that by bringing workers on rolls, the company’s wage bill would go up only marginally but the commercial gains by finishing projects earlier could be much larger. Manpower cost is less than 7% of the total building cost of houses and goes down further in commercial constructions.

He says in India, almost two-thirds of the workers — mostly migrant workers go back to villages during the agricultural peak season, which lasts almost four-five months — slowing down construction work.

Over 5,000 workers are working for DLF-LOR in India but only 300 are directly on the rolls of the company. The company is already in the process of bringing more workers on the rolls.

“Once they are on rolls, they will be given better wages, accommodation and other facilities so that they can live near the site with their families. This will discourage them from going to their native place in agricultural peak season,” explains a DLF official.

Economic times
5th Nov'07

05-11-07	#1
hema New Member Join Date: Oct 2006 Posts: 23 Thanks: 0 Thanked 0 Times in 0 Posts	Why not hire our own people working in the Gulf?? India’s growth story has thrown up immense job opportunities for expat and NRI managers, pilots and other high-salaried professionals, so far. Now it’s the turn of cheap and skilled labour from outside India to participate in the growth story. Companies have already started hiring or plan to hire such labour in thousands. India’s biggest real estate developer, DLF, plans to bring 20,000 Indian labourers from the Middle East back home to work for its projects. This follows the move made by Reliance Industries, which hired nearly 4,000 Chinese workers to lay a gas pipeline in the country. DLF Laing-O’Rourke, a joint venture between DLF and UK-based real estate company which undertakes construction work for DLF in India, wants to hire skilled labourers such as carpenters, bar benders and electricians from China, Indonesia and Philippines. “Chinese labour comes at a low cost and is more productive. Plus, they can be used as captive resource,” says a DLF official who didn’t want to be named. But the UPA government, surviving on support from pro-labour Left ally, has been reluctant in issuing visas. So, the company is now focussed on bringing back Indian labourers working in the Middle East. “There’s a large Indian workforce in the Middle East including in projects executed by Laing-O’Rourke. Some workers may be wanting to relocate to India and we could look at the possibility of absorbing them in our projects here,” said DLF Laing O’Rourke India director, JK Chandra. DLF didn’t give out numbers officially but a senior official, who didn’t want to be named, said it could be close to 20,000. If the plan goes through, it could be one of the biggest homecoming for Indian labourers, who for the past three decades have been working in Gulf countries to earn higher wages under difficult conditions. DLF’s move holds the promise of a better life for these labourers, who are seen as the least beneficiary of India’s economic reforms. DLF plans to match wages and perks the workers currently earn in the Middle East. They would be brought on the rolls of the company, a departure from the current practice where most construction companies source labourers from labour contractors. At the mercy of labour contractors, workers generally earn very little, less than what the company forks out to the contractors. RIL, India’s largest private sector company, already has 4,000-strong Chinese workforce working for its gas pipeline project and Jamnagar Refinery. RIL spokesperson declined to give details on the matter, but a company official, who didn’t want to be named said, “Chinese workers have been working on the company project for the past couple of months. These skilled and semi-skilled workers have earlier executed a similar project in Russia. Lack of experience in domestic market prompted us to get workers from China.” RIL wants to hire many more workers from China. It is also eyeing welders and other low-skilled workers from Indonesia and Philippines. But its plans have been frustrated by the government’s reluctance to issue visa to these workers. A DLF official says that by bringing workers on rolls, the company’s wage bill would go up only marginally but the commercial gains by finishing projects earlier could be much larger. Manpower cost is less than 7% of the total building cost of houses and goes down further in commercial constructions. He says in India, almost two-thirds of the workers — mostly migrant workers go back to villages during the agricultural peak season, which lasts almost four-five months — slowing down construction work. Over 5,000 workers are working for DLF-LOR in India but only 300 are directly on the rolls of the company. The company is already in the process of bringing more workers on the rolls. “Once they are on rolls, they will be given better wages, accommodation and other facilities so that they can live near the site with their families. This will discourage them from going to their native place in agricultural peak season,” explains a DLF official. Economic times 5th Nov'07

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