Labor Supply Contracting was probably a product of the Union Raj in India. Glamorized by Bollywood in the 70's the reality was probably not as exciting. Some Labor Unions had become so powerful that they operated like a criminal organization. Their leaders were feared and resulted in many manufacturing units shutting down. Mumbai saw some of its worst days and many mills and factories shut down.
Human Resource Managers and Industrial Disputes professionals preferred to hire labor through a sub-contractor. This had multiple benefits. They could discontinue or hire employees at will. The labor contractor was usually a middleman who would mange the statutory requirement and was therefore paid a nominal fee of 10% to 15% of the service.
The contractual labor in this case was usually paid a minimum wage as per the prevailing laws (at least on paper). They could not be a part of the Union as they were not Permanent Employees of the company.
The erstwhile unions would negotiate wages for their members with the management. As the original members retired the unions became weaker, and the sub-contractor became the norm for hiring labor in manufacturing companies. The management ensured statutory compliance through regular audits.
Labor supply contracts are a product of this history. As manufacturing expanded, Labor contractors were readily available and even today offer labor for a multitude of services. These include contractual labor for the shop floor, labor for canteens, labor for housekeeping, labor for security, and labor for gardening.
As IT and services companies started growing this tradition of labor services contracts have continued. The priority and goals are to ensure statutory compliance and minimizing labor related liability.
Landscape gardens had not evolved and investments in landscape were at best mediocre. So for all these years and even today in many cases the Labor Supply Contracts are the norm.
With many Indian Corporates now competing on the global stage and MNCs setting up world class manufacturing in India, Landscape is now an essential aspect of the brand image and environmental consciousness. It is now a considered a key element of work environment. Therefore corporates hire professional landscape architects and contractors to develop world class landscapes.
Labor supply contracts in these cases however are not the correct fit. The labor contractor has no goals in terms of the actual work done or the skills of the technicians. They get paid for the number of labor supplied on a monthly basis.
In conclusion - It is essential for corporates to rethink and upgrade the labor supply contracts and start considering Landscape Service Contracts for the Landscape Maintenance.
