OCCUPATIONAL WAGE SURVEY SIXTH ROUND 2008 REPORT ON TEN
ENGINEERING INDUSTRIES
CHAPTER - IV
PAYROLL EARNINGS
4.1 INTRODUCTION
Payroll earnings of workers in different occupations in an industry/region reflect the inter-industry and intra-industry differentials in income and socio-economic conditions of the workers. Data on earnings from payrolls of establishments refer to cash payments received by the workers from the employers. It include remuneration paid to workers regularly in every wage period for normal working hours, overtime payment, bonus (production, incentive, attendance, etc.), dearness allowance, remuneration for time not worked (public holidays, sick leave and other paid leave), other cash allowances of a regular nature, and regular payments made in kind. Payments of irregular nature, such as, profit sharing bonus, ex-gratia payment, etc. are excluded from the scope of data on earnings. Similarly, payments made towards free housing, ex-gratia payments like gratuity, lay-off compensation, etc. are also excluded from the scope of earnings. The requisite information collected during the course of survey from a sample of workers drawn from each selected occupation in ten selected Engineering Industries is analyzed in the succeeding paragraphs.
The information on average daily earnings, presented in this Chapter and elsewhere in the Report, relates to wages/earnings per manday paid for. For arriving at the figure of average daily earnings, the total payroll earnings in a pay period is divided by the total number of days paid for during the period i.e. the total number of days worked plus the number of days not worked but paid for.
4.2 AVERAGE DAILY EARNINGS BY SEX AND AGE
Table 4.1 gives sex-wise average daily earnings of workers. The overall average daily earnings of men, women and all workers for all the Ten Engineering Industries combined together worked out to Rs. 263.72, Rs. 212.38 and Rs.259.79, respectively.
The average daily earnings of women workers were more than that of men workers in Motor Vehicles and TV and Teleprinters Industries and less than men workers in all other Engineering Industries excluding Aircrafts where no women workers were reported to be employed. At the stratum level, the average daily earnings of women workers were higher than their men counterparts in Haryana stratum of Motor Vehicles Industry, Residual stratum of TV and Teleprinters, Uttar Pradesh and Kerala strata of Computers and Residual strata of Watches & Clocks industry.
The average daily earnings of men workers were the highest at Rs.396.10 in Aircrafts industry followed by Rs.332.10 in Motor Cycles/Scooters industry. The average daily earnings of women workers were the highest at Rs.309.54 in Motor Vehicles industry followed by Rs.273.31 in TV and Teleprinters industry. The average daily earnings of men workers were the lowest at Rs.141.88 in Bicycles and Rickshaws whereas, for women workers these were the lowest at Rs.88.18 in Refrigerators and Air Conditioners industry.
4.3 AVERAGE DAILY EARNINGS BY SYSTEM OF WAGE PAYMENT
The average daily earnings of workers by system of wage payment are given in Table 4.2. For all the Ten Engineering Industries taken together, the average daily earnings of time-rated workers being Rs. 260.22 were higher than that of the piece-rated workers being Rs. 181.58. At the industry level, the average daily earnings of piece-rated workers were more than that of their time-rated workers in Bicycles and Rickshaws and Watches & Clocks industries, whereas the average daily earnings of time-rated workers were more than that of piece-rated workers in Motor Vehicles, Motor Cycles/Scooters and Refrigerators and Air Conditioners industries. The piece-rated workers were not reported in Ship Building, Locomotives, Aircrafts, T.V. and Teleprinters and Computer industries. The highest average daily earnings of the time-rated workers was recorded at Rs. 396.10 in Aircrafts industry, followed by Rs. 330.59 in Motor Cycles/Scooters industry, whereas the lowest average daily earnings of Rs. 137.89 was reported in Bicycle and Rickshaws industry. The highest average daily earnings of piece-rated workers was Rs.490.23 in Watches & Clocks and the lowest being Rs.144.78 in Motor Cycles/Scooters industry.
4.4 AVERAGE DAILY EARNINGS OF TIME–RATED WORKERS
Table 4.3 presents average daily earnings of time-rated workers by sex and age. The average daily earnings of time-rated men, women and all workers were recorded at Rs. 264.20, Rs. 212.34 and Rs. 260.22, respectively. Further, average daily earnings of time-rated men workers were lower than women workers in Motor Vehicles and T.V. and Teleprinters industries and higher in the remaining Engineering Industries excluding Aircrafts where no women workers were employed. The highest average daily earnings of time-rated men workers were reported in Aircrafts industry at Rs. 396.10 and that for women in Motor Vehicles at Rs.309.54. The lowest average daily earnings of time-rated men workers were reported in Bicycles and Rickshaws at the rate of Rs. 138.75 and time-rated women workers in Refrigerators and Air Conditioners at the rate of Rs.88.18.
4.5 AVERAGE DAILY EARNINGS OF PIECE–RATED WORKERS
Sex-wise information on average daily earnings of piece-rated workers is given in Table 4.4. The average daily earnings of piece-rated men, women and all workers worked out to be Rs. 180.58, Rs. 250.00 and Rs. 181.58 respectively. The average daily earnings of piece-rated women workers were higher than piece-rated men workers in Motor Cycles/Scooters, the only industry where piece-rated women workers were employed. The highest average daily earnings of piece-rated men workers were reported in Watches & Clocks at the rate of Rs. 490.23 whereas the lowest were reported in Motor Cycles/Scooters at Rs. 140.86.
4.6 AVERAGE DAILY EARNINGS BY COMPONENTS
The average daily earnings by components are presented in Table 4.5. It may be seen from the Table that the basic wages and dearness allowance were the two main components of worker's earnings. Both these components taken together accounted for about 62.21 per cent of total average daily earnings for all the Ten Engineering Industries taken together. The other components of earnings in order of their percentage share in the total average daily earnings were 'Other Allowances' 22.51 per cent, 'House Rent Allowance' 10.64 per cent, 'Bonus' 4.26 per cent and 'City Compensatory Allowance' 0.38 per cent. Benefits in kind was not paid in any of the Ten Engineering Industries. It could also be seen from the Table that Dearness Allowance, Bonus, House Rent Allowance and Other Allowances were paid across all the ten Engineering Industries whereas, City Compensatory Allowance was not paid in Motor Cycles/Scooters and Bicycle and Rickshaws industries.
4.7 DISTRIBUTION OF WORKERS BY LEVELS OF AVERAGE DAILY EARNINGS
The distribution of workers by different groups of average daily earnings is shown in Table 4.6. For all Engineering industries taken together, the average daily earnings of 37.18 per cent of workers were Rs. 250.01 and above, whereas for 7.38 per cent, 46.78 per cent and 8.66 per cent workers these ranged between Rs.200.01 to Rs.250.00, Rs.100.01 to Rs.200.00 and Rs.25.01 to Rs.100.00 respectively. The average daily earnings of none of the workers were below Rs.25.00.
The highest proportion of workers in Aircrafts, Watches & Clocks, Motor Cycles/Scooters, T V and Teleprinters, Refrigerators and Air Conditioners, Ship Building, Motor Vehicles, Computers and Locomotives Industries, i.e. 68.82 per cent, 49.25 per cent, 47.62 per cent, 41.29 per cent, 36.72 per cent, 35.61 per cent, 35.37 per cent, 31.45 per cent and 25.72 per cent of the workers, respectively, had average daily earnings of Rs. 250.01 and above. On the other hand, in Bicycles and Rickshaws, the highest percentage of workers i.e. 32.11 per cent of the workers earned between Rs.75.01 to Rs.200.00. It may also be seen from the table that 15.65 per cent of the workers in Ship Building industry earned only upto Rs.100.00 per day.
At stratum level, amongst all the different strata of ten Engineering Industries, the highest proportion i.e. 95.68 per cent of the workers in Kerala stratum of Computers closely followed by Maharashtra stratum with 92.67 per dent of Motor Cycles/Scooters earned Rs. 250.01 and above per day whereas, the lowest proportion i.e. 1.28 per cent workers in Gujarat stratum in Watches & Clocks earned Rs.250.01 and above per day. It is observed from the Table that 50.06 per of the workers in Motor Cycles/Scooters industry of Residual stratum earned only upto Rs. 100.00 per day
4.8 DISTRIBUTION OF WORKERS BY WAGE LEVEL AND OCCUPATION
The percentage of workers in each occupation and the percentage of total wage bill accrued to them have been presented in Table 4.7. It is observed that in each Engineering Industry, there were only few main occupations, which employed bulk of workers in that particular industry. These main occupations accounted for the major portion of the wage bill in the industry. In Ship Building six occupations viz., ‘Coolie/Mazdoor', 'Fitter, 'Gas Cutter', 'Helper', 'Supervisor' and 'Welder" accounted for 62.80 per cent of the employment and 59.85 per cent of the wage bill. In Locomotives, seven occupations viz., 'Coolie/Mazdoor', 'Fitter', 'Helper', 'Moulder', 'Supervisor', 'Welder' and 'Machine Operator/Machinist' accounted for 58.82 per cent of the employment and 57.16 per cent of the wage bill in the industry. In Motor Vehicles, five occupations viz., 'Assembler', 'Grinder', 'Helper', 'Supervisor' and 'Machine Operator/Machinist' accounted for 55.18 per cent of the employment and 62.91 per cent of the wage bill in the industry. In Motor Cycles/Scooters, six occupations viz., 'Assembler', 'Coolie/Mazdoor', 'Fitter', 'Helper', 'Welder' and 'Machine Operator/Machinist' accounted for 67.06 per cent of the employment and 63.69 per cent of the wage bill in the industry. In Bicycles and Rickshaws five occupations viz., "Helper', 'Packer', 'Press Man', "Supervisor' and 'Machine Operator/Machinist' accounted for 55.12 per cent of the employment and 53.77 per cent of the wage bill in the industry. In Aircrafts, seven occupations viz., "Fitter', 'Mechanical/Electrical Foreman', 'Helper', 'Mechanic (General)', 'Machine Operator/Machinist', 'Aircraft Erector' and 'Radio/Radar Mechanic' accounted for 84.41 per cent of the employment and 81.63 per cent of the wage bill in the industry. In Refrigerators and Air Conditioners six occupations viz., 'Assembler', 'Fitter', 'Helper', 'Watchman', 'Welder' and 'Machine Operator/Machinist' accounted for 62.49 per cent of the employment and 62.88 per cent of the wage bill in the industry. In T. V. and Teleprinters, five occupations viz., 'Assembler', 'Helper', 'Machine Operator/Machinist', 'Operator' and 'Technician' accounted for 65.10 per cent of the employment and 66.85 per cent of the wage bill in the industry. In Computers, five occupations viz., 'Assembler', 'Helper', 'Supervisor', 'Operator' and 'Technician' accounted for 68.45 per cent of the employment and 70.12 per cent of the wage bill in the industry. In Watches & Clocks, Five occupations viz., 'Assembler', 'Supervisor', 'Machine Operator/Machinist', 'Operator', and 'Watch Maker' accounted for 62.08 per cent of the employment and 75.13 per cent of the wage bill in the industry.
4.9 CO-EFFICIENT OF VARIATIONS IN AVERAGE EARNINGS BY OCCUPATIONS AND BETWEEN STRATA
The co-efficient of variation is a measure of relative dispersion and defined as:
Standard Deviation
Co-efficient of Variance (CV) = -------------------- x 100
Mean
It is generally expressed in terms of percentage. The use of Co-efficient of Variance is important due to the fact that the Mean and Standard Deviation tend to change together in many experiments. Also the Standard Deviation is not a very helpful measure of dispersion when studied alone for any distribution, in general. Hence, knowledge of relative variation i.e. co-efficient of variance is valuable in evaluating the consistency of various parameters estimated by a survey.
For comparing the variations in the average earnings at industry, stratum and occupation level, the co-efficient of variation in average daily earnings for all the strata and occupations in different industries were worked out. These have been presented in the Tables 4.8.1 and 4.8.2, respectively. The co-efficient of variation for average daily earnings for some of the occupations could not be worked out because of the reason that only one worker was found employed in these occupations in an industry. The parameter for such occupations has been indicated by putting a dash (-) against these occupations.
It may be seen from Table 4.8.1 that at Industry level, the maximum co-efficient of variance was observed at 71.13 per cent in Watches & Clocks and the lowest was reported in Ship Building at 45.79 per cent. At stratum level, among all the different Engineering Industries, the highest co-efficient of variance at 76.16 per cent was observed in Residual stratum of Watches & Clocks the lowest at 29.07 per cent in Haryana stratum of Bicycles and Rickshaws.
Table 4.8.2 presents occupation-wise co-efficient of variance in each industry. The highest and the lowest co-efficient of variance in Ship Building was reported at 67.56 per cent in ‘Sweeper' and 1.75 per cent in 'Shaper Machine Operator' occupations, respectively. In Locomotives, the highest and lowest co-efficient of variance was reported to be 64.27 per cent in ‘Assembler' and 0.95 per cent in 'Setter' occupations, respectively. The highest and lowest co-efficient of variance in Motor Vehicles was reported to be 80.72 per cent in 'Driver' and 5.86 per cent in 'Chargeman' occupations, respectively. In Motor Cycles/Scooters, the highest and lowest co-efficient of variance was reported to be 98.83 per cent in 'Driller' and 0.03 per cent in 'Sheet Metal Worker' occupations, respectively. In Bicycles and Rickshaws, the highest and lowest co-efficient of variance was reported to be 52.99 per cent in 'Milling Machine operator' and 1.46 per cent in "Hammer man ' Occupations, respectively. In Aircrafts, the highest and lowest co-efficient of variance was reported to be 98.94 per cent in 'Painter' and 1.23 per cent in 'Moulder' occupations respectively. In refrigerators and Air Conditioners, the highest and lowest co-efficient of variance was reported to be 80.38 per cent in 'Coolie/Mazdoor' and 2.17 per cent in 'Boiler Attendant' occupations respectively. In T V and Teleprinters, the highest and lowest co-efficient of variance was reported to be 89.98 per cent in 'Checker' and 0.15 per cent in 'Boiler Attendant' occupations respectively. In Computers, the highest and lowest co-efficient of variance was reported to be 91.53 per cent in 'Packer' and 0.14 per cent in 'Coolie/Mazdoor' occupations respectively. In Watches & Clocks, the highest and lowest co-efficient of variance was reported to be 88.22 per cent in 'Setter' and 0.01 per cent in 'Coolie/Mazdoor' occupations respectively.
4.10 EARNINGS OF WORKERS BY OCCUPATION AND SEX AND AGE
Average daily earnings of workers by occupation and sex have been presented in Table 4.9. The highest average daily earnings in all the different occupations were reported Rs. 531.29 for 'Charge man’ in Ship Building, Rs.412.37 for ‘Assembler' in Locomotives, Rs.513.82 for 'Charge man' in Motor Vehicles, Rs.782.38 for ‘Charge Hand' in Motor Cycles/Scooters and Rs.302.53 for 'Mechanical/Electrical Foreman' in the Bicycles and Rickshaws, Rs.757.33 for 'Charge Hand' in Aircrafts, Rs.534.08 fir 'Pattern Maker' in Refrigerators and Air Conditioners, Rs.580.63 for 'Die Maker' in T V and Teleprinters, Rs.848.07 for 'Mistry/Kangani' in Computers and Rs.568.34 for 'Furnaceman' in Watches and Clocks industry. On the other hand, the lowest average daily earnings were reported Rs.87.39 for 'Marker' in Ship Building, Rs.111.60 for 'Power Hammer Operator' in Locomotives, Rs.98.93 for ‘Furnaceman’ in Motor Vehicles, Rs.121.29 for 'Loader/Unloader' in Motor Cycles/Scooters, Rs.93.21 for 'Driller' in Bicycles and Rickshaws, Rs. 162.58 for 'Oilman/Greaser' in Aircrafts, Rs.98.84 for 'Loader/Unloder' in Refrigerators and Air Conditioners, Rs. 80.74 for 'Loader/Unloader' in T V and Teleprinters, Rs.78.49 for 'Tool Maker' in Computers and Rs.40.32 for 'Chargeman' in Watches & Clocks industry.
The women workers were employed in a few occupations in all the different Engineering industries covered in the survey except Air Crafts industry. Out of 40 occupations in Ship Building, women were employed in 3 occupations and their earnings were less than men workers in all these occupations but for 'Sweeper' in which their earnings were significantly higher than men. Out of 53 occupations in Locomotives, women were employed in 4 occupations and their earnings were more than men workers in 2 occupations, viz. ‘Core Maker' and 'Machine Operator/Machinist'. Out of 45 occupations in Motor Vehicles, women were employed in 10 occupations and their earnings were less than their men counterparts in all these occupations but for 'Assembler' and 'Machine Operator/Machinist' in which their earnings were more than men workers. Out of 47 occupations in Motor Cycles/Scooters, women were employed in 13 occupations and their earnings were significantly less than men in most of these occupations. Out of 46 occupations in Bicycles and Rickshaws, women were employed in 6 occupations and their earnings were less than men in all these occupations. Out of 40 Occupations in Refrigerators and Air Conditioners, women were employed in 3 occupations and their earnings were less than men in all these occupations. Out of 41 occupations in T. V. and Teleprinters, women were employed in 14 occupations and their earnings were less than men an all these occupations except the 4 occupations of 'Supervisor', Watchman', 'Cabinet Fitter' and 'Operator'. Out of 45 occupations in Computers, only women workers were employed in one occupation viz., 'Wireman', whereas both women and men were employed in 14 occupations and their earnings were less than men in all these occupations except 'Sweeper' and 'Operator' occupations. Out of 38 occupations in Watches & Clocks industry, women were employed in 16 occupations, out of which their earnings were equal to men in one occupation of 'Soldering Operator', more than men in 'Operator' and less than men in remaining occupations.
4.11 EARNINGS BY OCCUPATIONS, SEX AND SYSTEM OF PAYMENT
Average daily earnings of workers by occupations, sex and system of payment have been presented in Tables 4.10.1, 4.10.2 and 4.10.3, respectively. Table 4.10.1 shows that the average daily earnings of time-rated workers for all Engineering Industries taken together were higher than the earnings of piece-rated workers. Out of the five Engineering Industries reporting both time-rated and piece-rated workers, the average daily earnings of time-rated workers were less than Piece-rated workers in Bicycles and Rickshaws and Watches & Clocks industries and more than piece-rated workers in Motor Vehicles, Motor Cycles/Scooters and Refrigerators and Air Conditioners.
Table 4.10.2 depicts the average daily earnings of time-rated workers by occupations and sex and age.
An analysis of data presented in Table 4.10.2, revealed that at occupation level, the average daily earnings of time-rated women workers were higher than men workers in one occupation i.e. 'sweeper', in Ship Building, in two occupations, viz. 'Core Maker' and 'Machine Operator/Machinist' in Locomotives, in two occupations viz., 'Assembler' and 'Machine Operator/Machinist' in Motor Vehicles, in four occupations of 'Supervisor', 'Watchman', 'Cabinet Fitter' and 'Operator' in T V and Teleprinters, in two occupations viz., 'Sweeper' and 'Operator' in Computers and in one occupation of 'Operator' in Watches & Clocks. In case of Motor Cycles/Scooters, Bicycles and Rickshaws and Refrigerators and Air Conditioners industries the average daily earnings of time-rated women workers were less than the men workers in all occupations employing women workers.
Table 4.10.3 shows the average daily earnings of piece-rated workers by occupations and sex and age. Of the five Engineering Industries reporting employment of piece-rated workers, the piece-rated women workers were found to be employed in 'Machine Operator/Machinist' occupation of Motor Cycles/Scooters industry only with average daily earnings higher that than their men counterpart.
4.12 EARNINGS BY OCCUPATIONS AND COMPONENTS OF WAGES
The average daily earnings of workers by components in each occupation are depicted in Table 4.11. It is observed that in all the occupations as well as at industry level, the basic wages, dearness allowance and other allowances were the major components of the average daily earnings. Among other components of earnings, Bonus and house rent allowance were paid in most of the occupations in all the Ten Engineering Industries. The city compensatory allowance was not paid to the workers in any occupation in Bicycles and Rickshaws and Motor Cycles/Scooters. The benefit in kind was not paid to the workers in any of the Ten Engineering industries.
The percentage distribution of workers as per their average daily earnings by occupations and income groups is given in Table 4.12. It is observed that all the workers in 7 out of 40 occupations in Ship Building, in 4 out of 53 occupations in Locomotives, in 6 out of 45 occupations in Motor Vehicles, in 5 out of 47 occupations in Motor Cycles/Scooters, in 1 out of 46 occupations in Bicycles and Rickshaws, in 5 out of 15 occupations in Aircrafts, in 7 out of 40 occupations in Refrigerators and Air Conditioners, in 10 out of 41 occupations in T. V. and Teleprinters, in 9 out of 45 occupations in Computers and 6 out of 38 occupations in Watches & Clocks industry had their average daily earnings of 250.01 and above.
At industry level for all occupations combined, the average daily earnings of 35.61 per cent of workers in Ship Building, 25.72 per cent workers in Locomotives, 35.37 per cent workers in Motor Vehicles, 47.62 per cent workers in Motor Cycles/Scooters, 7.47 per cent workers in Bicycles and Rickshaws, 68.82 per cent workers in Aircrafts, 36.72 per cent workers in Refrigerators and Air Conditioners, 41.29 per cent workers in T V and Teleprinters, 31.45 per cent workers in Computers and 49.25 per cent of workers in Watches & Clocks had average daily earnings of Rs.250.01 and above. Further, in Bicycles and Rickshaws industry more than 54.00 per cent of the workers earned between Rs.50.01 to Rs.125.00.
4.13 TREND IN AVERAGE DAILY EARNINGS AND REAL EARNINGS OF WORKERS
The trend in average daily earnings of workers by sex-age and system of wage payment over different rounds has been presented in Table 4.13. It is seen that the average daily earnings in 6th round have registered an increase over 5th round in all the Ten Engineering Industries.
In order to assess the improvement in the economic conditions of the workers, it is necessary to examine the data on real earnings. The real earnings for the workers have also been presented in the Table 4.13. The real earnings have been defined on the same line as the real wage rate defined in paragraph 3.9 under Chapter-III.
The Table shows the extent of increase in real earnings of workers in the year 2007 as compared to that in the year 1995. The Table reveals that the real earnings of the workers have increased in all the Ten Engineering Industries except Ship Building and Locomotives during 6th round of Occupational Wage Survey. The highest increase in real earnings has been reported at 72.70 per cent in T. V. and Teleprinters, followed by 63.33 per cent in Motor Vehicles, 57.05 per cent in Motor Cycles/Scooters, 52.14 per cent in Watches & Clocks, 46.11 per cent in Computers, 25.00 per cent in Bicycles and Rickshaws, 22.39 per cent in Refrigerators and Air Conditioners , 10.40 per cent in Airrafts. The real earnings of workers have declined by 50.17 per cent in Ship Building and 24.22 per cent in Locomotives