ANNUAL SURVEY OF INDUSTRIES, 2002-03, VOL. II REPORT ON ABSENTEEISM,

 LABOUR TURNOVER,  EMPLOYMENT AND LABOUR COST IN CENSUS SECTOR

CHAPTER-III

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:

 

a)           Inadequate wage levels leading to employees moving to competitors,

b)           Poor morale and low level of motivation within the workforce,

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 during the year 2002 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 2002, was 13.12 percent as compared to 12.84 percent during the year 2001. The overall separation during the year 2002 was 15.53 percent as compared to 16.37 percent during the year 2001. Thus, there was about 2.41 percent decrease in overall employment during the year 2002 as compared to 3.53 percent decrease during the year 2001.  At all India level, about 84.95 percent factories reported Labour Turnover in their units during the year 2002.

 

The lowest and highest rates of accession, during the year 2002 were observed at 1.00 percent in Jharkhand and 38.96 percent in Delhi, respectively. Similarly, the lowest and highest rates of separation, during the year, were observed in Tripura (3.08 percent) and Uttar Pradesh (35.70 percent), respectively.  The total Labour Turnover was highest in Delhi (71.73 percent) and lowest in Meghalya (5.60 percent). During the year, 13 States recorded higher accession rates and 12 States recorded higher separation rates than the respective rates at the all India level.

 

3.2  Labour Turnover in Industries

 

     Industry-wise Labour Turnover among directly employed regular workers during the year 2002 is given in Table 3.1.2. The highest rate of accession at 108.58 percent was recorded in the industry group ‘014-Agricultural and animal husbandry service activities, except veterinary activities’, whereas, the lowest rate of accession at 1.11 percent was recorded in the industry group ‘353–Manufacture of aircraft and space craft’.

 

On the other hand, like accession, the highest rate of separation at 110.02 percent was also recorded in the industry group ‘014-Agricultural and animal husbandry service activities, except veterinary activities’. The lowest rate of separation, however, was recorded at 2.46 percent in industry group '223-Reproduction of recorded media'. The total labour turnover was highest in industry group ‘201-Saw milling and planing of wood’, (218.60 percent) and lowest in industry group ‘353-Manufacture of aircraft and spacecraft' (5.24 percent).

 

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 Joint Sector at 18.50 percent, followed by Private Sector (13.51 percent) and Public Sector (6.68 percent).  Separation rate was again the highest at 22.60 percent in Joint Sector, followed by Public Sector (15.26 percent) and Private Sector (14.87 percent).

 

     Among States, the highest rate of accession in Public Sector was recorded in Uttar Pradesh at 51.74 percent and lowest rate in Bihar (0.48 percent). In Joint Sector, the highest rate of accession was reported in Haryana at 64.10 percent and lowest rate in Himachal Pradesh (0.11 percent). In Private Sector, Delhi reported the highest rate of accessions at 39.26 percent, whereas, Jharkhand reported lowest rate of accessions at 2.63 percent.

 

 In Public Sector, the highest rate of separation was reported in Madhya Pradesh at 108.41 percent and lowest rate in Bihar (0.48 percent). In Joint Sector, the highest rate of separation was reported in Haryana at 58.59 percent and lowest in Meghalya (0.74 percent), whereas, in Private Sector, the highest rate of separation was reported in Uttaranchal at 36.09 percent and lowest in Assam (2.92 percent).

    

3.4  Labour Turnover in Industries by Sectors

 

     Industry-wise and Sector-wise Labour Turnover among 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 113.60 percent and 113.27 percent, respectively. The highest rates of accession and separation in the Public Sector were reported in the industry group '154-Manufacture of other food products' at the rate of 70.52 percent and 84.72 percent, respectively. In Joint Sector, the highest rates of accession and separation were reported in the industry groups '154-Manufacture of other food products' and '181-Manufacture of wearing apparel, except fur apparel' at the rate of 71.80 percent and 214.29 percent, respectively.

 

Sector-wise lowest rate of accession was recorded at 0.04 percent in the industry group '210-Manufacture of paper and paper products' in Public Sector, 0.05 percent in industry group ‘322–Manufacture of television and radio transmitters and apparatus for line telephony and line telegraphy‘ in Joint Sector and 0.86 percent in industry group ‘353-Manufacture of aircraft and spacecraft’ in Private Sector.

 

     In Public Sector, separation rate was lowest at 0.81 percent in industry group '172-Manufacture of other textiles'. In Joint Sector, the separation was lowest at 0.70 percent in the industry ‘243-Manufacture of man-made fibers' and in Private Sector, the separation rate was lowest at 2.46 percent in industry group ‘223-Reproduction of recorded media'.