Increasing role of job contractors

Politicians have their fingers in various pies at the same time; anything which gives them more money and probably increase their vote bank, they get into it. We did know that labour unions are a big money earner for them so are the water tankers. Realty was always a well known bastion and so is media and now one more big emerging money spinner for them is as job contractors.

Yes, many small and big politicians own job contracting firms which supply blue collared workers to so any factories around. There is one we know of Upshot -  started in 2010 by a MLA of Dravida Munnetra Kazhagam. There are many such ministers and panchayat chiefs who own job contracting firms.

This is BIG money – imagine this. If a company rents out 30,000 workers, and each of them makes Rs 10,000 a month, with the company taking a 10% commission, or Rs 1,000 from each. This means the company earns Rs.3 crore every month. This is good income in a business with low overheads.

With more and more companies hiring contractual workers, reducing the share of employees on their pay roll to bring down costs, the role of such job contractors will only go up.