ANNUAL SURVEY OF INDUSTRIES 2003-04 (PART I & PART II)
LABOUR TURNOVER
Labour turnover is an important parameter indicating the over all health of an industry or an establishment in terms of wages, industrial relations, working conditions and other welfare facilities provided by the employers to the workers. Higher rate of Labour Turnover indicates lack of stability in the labour force, which in turn may not be considered conducive to the productivity of labour. For higher productivity of labour, it is essential that labour force remains stable over a period of time. Labour Turnover measures the extent of change in the work force due to accession or separation during a particular period of time.
High Labour Turnover causes problems for a business. It is costly, lowers productivity and morale and tends to get worse if not dealt with. Labour Turnover does not just create costs, but some level of Labour Turnover is important to bring new ideas, skills and enthusiasm to the labour force. A natural level of Labour Turnover can be a way in which a business can slowly reduce its workforce without having to resort to redundancies. A high level of Labour Turnover could be caused by many factors such as:
a) Inadequate wage levels leading to employees moving to competitors,
b) Poor morale and low level of motivation within the workforce in a specific industry,
c) Recruiting and seeking the wrong employees in the first place, meaning they seek more suitable employment, and
d) A buoyant local labour market offering more attractive opportunities to employees.
Statistics relating to the rate of accession and separation in respect of directly employed regular workers, their average number in employment and the percentage of factories reporting labour turnover by States, Industries and Sectors during the year 2003 have been presented in Tables 3.1.1. 3.1.2, 3.2.1 and 3.2.2.
3.1 Labour Turnover in States
State-wise Labour Turnover among directly employed regular workers is presented in Table 3.1.1. It may be seen from the Table that at all India level, the rate of accession, during the year 2003, was 16.79 per cent as compared to 15.44 per cent during the year 2002. The overall separation rate during the year 2003 was 18.11 per cent as compared to 16.57 per cent during the year 2002. Thus, there was about 1.32 per cent decrease in overall employment during the year 2003 as compared to 1.13 per cent decrease during the year 2002. At all India level, about 64 per cent factories reported Labour Turnover in their units during the year 2003.
The lowest rate of accession during the year 2003 was observed in Tripura at 0.84 per cent followed by Assam (3.27 per cent), Jharkhand (3.73 per cent) and Orissa (4.61 per cent). The highest rate of accession during the year 2003 was observed in Punjab at 39.52 per cent followed by Uttar Pradesh (31.70 per cent), Haryana (28.31 per cent), Delhi (27.86 per cent), Chandigarh (26.21 per cent) and Uttaranchal (25.93 per cent).
The lowest rate of separation during the year was also recorded in Tripura at 1.28 per cent, followed by Assam (3.28 per cent), Orissa (6.77 per cent), Chhattisgarh (7.24 per cent), Kerala (7.47 per cent) and Pondicherry (7.56 per cent) . The highest rate of separation during the year was also observed in Punjab at 37.13 per cent, followed by Bihar (33.31 per cent), Uttar Pradesh (32.43 per cent), Uttaranchal (28.54 per cent), Delhi ( 27.37 per cent) and Haryana (26.36 per cent).
The total Labour Turnover was also highest in Punjab (76.65 per cent) and lowest in Tripura (2.12 per cent). During the year, only 12 States recorded higher accession rates as against 19 States recording higher separation rates at the State level. There is a very strong positive correlation between the accession and separation rates.
Amongst the States employing more than 5 per cent of the directly employed workers at all India level, the rates of accession and separation were highest in Punjab followed by Uttar Pradesh, whereas these rates were the lowest in Kerala.
3.2 Labour Turnover in Industries
Industry-wise Labour Turnover among directly employed regular workers during the year 2003 is given in Table 3.1.2. The highest rate of accession at 105.15 per cent was recorded in the industry group ‘014-Agricultural and animal husbandry service activities, except veterinary activities’, followed by industry groups ‘142-Mining and quarrying n.e.c.’ (88.21 per cent), ‘153-Manufacture of grain mill products, starches and starch products, and prepared animal feeds’ (39.42 per cent), ‘371-Recycling of metal waste and scrap’ (39.24 per cent) and ‘300-Manufacture of office, accounting and computing machinery’ (38 77 per cent). The lowest rate of accession at 3.44 per cent was recorded in the industry group ‘243–Manufacture of man-made fibres’, followed by industry groups ‘232-Manufacture of refined petroleum products’ (4.11 per cent), ‘241-manufacture of basic chemicals’ (4.56 per cent), ‘352-Manufacture of railway and tramway locomotives and rolling stock’ (4.69 per cent) and ‘353-Manufacture of aircraft and spacecraft’ (4.80 per cent).
On the other hand, like accession, the highest rate of separation at 106.24 per cent was also recorded in the industry group ‘014-Agricultural and animal husbandry service activities, except veterinary activities’, followed by industry group ‘142-Mining and quarrying n.e.c.’ at 88.27 per cent. The lowest rate of separation, however, was recorded at 4.36 per cent in industry group ‘353-Manufacture of aircraft and spacecraft’, followed by industry groups ‘232-Manufacture of refined petroleum products’ (5.36 per cent), ‘314-Manufacture of accumulators, primary cells and primary batteries’ (7.41 per cent) and ‘231-Manufacture of coke oven products’ (7.48 per cent).
The total labour turnover was highest in industry group ‘014-Agricultural and animal husbandry service activities except veterinary activities’, (211.39 per cent) and lowest in industry group ‘353-Manufacture of aircraft and spacecraft’ (9.16 per cent). During the year, only 25 industry groups recorded higher accession rates as against 38 industry groups recording higher separation rates at the industry level.
Amongst the industry groups employing more than 5 per cent of the directly employed workers at all India level, the rates of accession and separation were highest in industry group ‘154-Manufacture of other food products’ followed by industry group ‘181-Manufacture of wearing apparel, except fur apparel’, whereas these rates were the lowest in the industry group ‘271-Manufacture of basic iron and steel’.
3.3 Labour Turnover in States by Sectors
State-wise and Sector-wise Labour Turnover among directly employed regular workers is presented in Table 3.2.1. From the Table, it may be observed that at all India level, accession rate was the highest in Private Sector at 17.65 per cent followed by Joint Sector at 15.31 per cent and Public Sector at 6.76 per cent. Separation rate was the highest at 23.00 per cent in Joint Sector, followed by Private Sector at 18.06 per cent and Public Sector at 15.15 per cent.
Among States, the highest rate of accession in Public Sector was recorded in Uttaranchal at 51.12 per cent and lowest rate in Andhra Pradesh at 0.75 per cent. In Joint Sector, the highest rate of accession was reported in Punjab at 51.46 per cent and lowest rate in Jharkhand at 0.47 per cent. In Private Sector, Punjab reported the highest rate of accessions at 40.67 per cent, whereas Tripura reported lowest rate of accessions at 1.57 per cent.
In Public Sector, the highest rate of separation was reported in Uttranchal at 58.14 per cent and lowest rate in Bihar at 1.69 per cent. In Joint Sector, the highest rate of separation was reported in Uttar Pradesh at 60.44 per cent and lowest in Delhi at 0.88 per cent, whereas in Private Sector, the highest rate of separation was reported in A & N Islands at 39.68 per cent and lowest in Tripura at 1.57 per cent.
Amongst the States employing more than 5 per cent of the directly employed workers at all India level, the high rates of accession and separation in Punjab were mainly contributed by the Joint Sector establishments in the state, whereas the low rates of accession and separation in Kerala were prevalent in all three Sectors in the state.
3.4 Labour Turnover in Industries by Sectors
Industry-wise and Sector-wise Labour Turnover amongst directly employed regular workers is given in Table 3.2.2. It may be seen from the Table that in Private Sector, the highest rates of accession and separation were recorded in the industry group ‘014-Agricultural and animal husbandry service activities, except veterinary activities’ at the rate of 105.07 per cent and 105.87 per cent, respectively. The highest rates of accession and separation in the Public Sector were reported in the industry group ‘172-Manufacture of other Textile’ at the rate of 51.88 per cent and 47.52 per cent, respectively. In Joint Sector, the highest rates of accession and separation were reported in the industry groups ‘014-Agricultural and animal husbandry service activities except veterinary activities’ at the rate of 113.24 per cent and 145.59 per cent, respectively.
Sector-wise lowest rate of accession was recorded at 0.08 per cent in the industry group ‘352-Manufacture of railway and tramway locomotives and rolling stock’ in Public Sector, 0.11 per cent in industry group ‘273–Casting of metals’ in Joint Sector and 3.55 per cent in industry group ‘243-Manufacture of man-made fibres’ in Private Sector.
In Public Sector, separation rate was lowest at 0.65 per cent in industry group ‘300-Manufacture of office, accounting and computing machinery’. In Joint Sector, the separation was lowest at 0.89 per cent in the industry ‘243-Manufacture of man-made fibers’ and in Private Sector, the separation rate was lowest at 5.39 per cent in industry group ‘353-Manufacture of aircraft and spacecraft’.
Amongst the industry groups employing more than 5 per cent of the directly employed workers at all India level, the high rates of accession and separation in industry group ‘154-Manufacture of other food products’ were mainly contributed by the Joint Sector establishments in the industry group, whereas the low rates of accession and separation in the industry group ‘271-Manufacture of basic iron and steel’ were mainly due to low labour turnover rates in Public Sector establishments in the industry group.