By Arun Srivastava
The push from the corporate sector for longer working hours while simultaneously advocating for lower wages reveals a concerning shift in the character of the Indian economy, aligning it more closely with capitalist industrial relations.
Karl Marx posited that capitalists exploit workers by demanding longer hours than necessary for production. This is echoed in the current demands from industry leaders in India. Not one of these corporate executives has committed to raising employee wages in proportion to the proposed extension of working hours. Their stance reinforces the idea that disputes over work hours are a critical element of capitalism.
Industry leaders are calling for an increase in working hours to as much as 70 to 90 hours per week, effectively forcing workers to sacrifice family time and personal well-being for industrial growth. Ironically, the manufacturing sector has been on a steady decline, with gross value added (GVA) per establishment dropping by 6.7% in 2023-24 compared to the previous year, and GVA per worker decreasing by 4.2%. According to the Annual Survey of Unincorporated Sector (ASUSE), this downward trend indicates a fall in productivity at both organizational and individual levels.
In this economic landscape, the push for longer working hours suggests a troubling agenda. It is no coincidence that this issue arises amid manufacturing’s decline. There seems to be a concerted effort by industry leaders, supported by right-wing political factions, to dismantle the Indian working class, which is viewed as an obstacle to growth and expansion under the current regime.
The status of the Indian labor market is dire, with alarmingly high rates of youth unemployment. The unemployment rate stands at 3.2% for those aged 15 and older, reaching 10.2% among individuals aged 15 to 29. Urban areas experience higher unemployment compared to rural areas, and women face even greater challenges in urban employment.
While capitalist nations typically enjoy shorter working hours—some even reducing them further in recent years—Indian corporate leaders are pushing for longer hours. In developed countries, rising incomes allow workers to afford more leisure time, which is not the case in India. For Indian workers, the notion of leisure is poorly defined and often unattainable.
Do these executives genuinely believe that extending working hours will exponentially increase their profits? Research indicates a correlation between national income and average working hours. The corporate sector’s reluctance to invest significantly in manufacturing also highlights a shift away from producing tangible goods. Manufacturing involves transforming raw materials into finished products, while trading firms act as essential intermediaries connecting manufacturers with consumers. In the pursuit of becoming a highly developed nation, many in the corporate sphere seem to prefer quick profits through trading over substantial investments in manufacturing.
Trading firms serve as crucial links between manufacturers and consumers, overseeing product sourcing and distribution. They often offer a wide range of products sourced from various factories. At present, the Indian market is inundated with Chinese products. The Indian corporate sector appears less inclined to develop unique goods catering to market needs, as this approach demands greater investment. Conversely, trading offers higher profits with lower initial costs, essential in today’s globalized economy where the lines between manufacturers and trading companies are increasingly blurred.
A 2019 report by the National Statistical Office of the Government of India, titled “Time Use in India – 2019,” unveiled a stark reality: male urban workers aged 15-59 spend an average of 521 minutes a day, or nearly 61 hours a week, engaged in direct employment activities. This challenges the notion of a legally mandated 48-hour workweek. Similarly, rural women in the same age bracket dedicate an astonishing 13 hours daily to paid and unpaid work, shedding light on their harsh realities.
Despite these alarming findings, Narendra Modi’s pro-capitalist government has suppressed the report’s findings, hindering political discussion. The move to extend working hours poses serious risks and echoes the historical struggles of workers in America over 137 years ago, who demanded an 8-hour workday, fighting for their right to balance work, leisure, and rest.
A concerning factor is the rise of work-from-home arrangements in the IT sector, which have stretched the workday almost to 24 hours. While this arrangement allows workers to be with family, it robs them of leisure time, as they remain on call around the clock. Indian industrialists are eager to mimic capitalist practices but are resistant to reforming industrial relations and production methods. Except for a few who have embraced innovation, many continue to rely on traditional production methods, showing a reluctance to embrace technological advancements that could enhance efficiency and productivity.
Industrialists are often dismissive of labor guidelines; despite claiming adherence to capitalist production modes, their attitude remains feudal. The International Labour Organization (ILO) deems working over 48 hours per week excessive, citing detrimental effects on health, safety, productivity, and work-life balance. Labour economists agree that reasonable work hours can actually boost production, opposing the notion that overworked, fatigued laborers can be productive.
It is encouraging to hear Anand Mahindra, chairman of the Mahindra Group, state that quality of work outweighs quantity of hours. He has openly opposed the idea of extending working hours, asserting that impactful work can be achieved within shorter timeframes. His comments respond to L&T chairman S.N. Subrahmanyan’s suggestion that employees should work 90-hour weeks. Mahindra emphasized the benefits of spending time with family and engaging in personal interests, which ultimately lead to better decision-making.
He stated, “I do not understand why business managers and owners seem intent on prolonging the work week when productivity—and consequently, profits—have demonstrably improved with shorter work weeks. This seems evident, even without the existence of a four-day workweek. Can anyone clarify this for me? Please, feel free to explain it simply.”
Last week, CPI(ML) MP Raja Ram Singh wrote to Union Labour Minister Mansukh Mandaviya, voicing concerns over recent comments from industry leaders advocating longer work hours, including proposals that would undermine the legally mandated eight-hour workday. Singh, who serves on the standing committee for labor, textiles, and skill development, called for strict enforcement of laws governing working hours and six-day work weeks. He contended that extended working hours often lead to decreased productivity and are harmful to workers’ health. (IPA Service)
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