12
NOTES AND COMMENTS THE FOUNDRY CLUSTER IN HOWRAH : SOCIO-ECONOMIC DIMENSIONS Jayanta Mitra" The paper portrays an overview of a foundry cluster in Howrah, the plight of the unorganized workforce, and the prospect of the iron foundry industry in the years to come. An effort is made to understand the problems and prospects of the iron foundry units from within; and to study labour related issues, the origin of the labour class the profile of the workforce, the characteristic patterns of the foundry units in Howrah, the working conditions and future prospects of the industry. Finally, the paper proposes a viable solution to the problems, through a partnership approach, facilitating a development dialogue. Introduction The small-scale industry (551) sector occupies a position of prominence in the Indian economy. The sector accounts for a significant proportion" of the country's export and employs considerable manpower. The survival and growth of 551 largely depends on their ability to innovate, improve operational efficiency and strike a balance between social concern ecological functioning, quality of work and the environment. Such a balance would ensure sustainable development and can be a leading force for social change. Sustainable development requires that the environment and the economy be viewed as one system for decision-making purposes. Again policy choices are valid only if they support both welfare and environmental integrity. A comprehensive and a viable strategy to ensure the sustainability of the 551 sector is obviously a prerequisite for its very survival. • Dr. Jayanta Mitra belongs to TERI (Tata Energy Research Institute), Darbari Seth Block, Habitat Place, Lodhi Road, New Delhi. Pollution control and technological efficiency in small industries cannot be expected to follow from simply following models that have been used for large industries. These operations are still essentially rooted in a socio-economic culture that has been displaced in developed countries. Again the workers in the small-scale sector constitute an extremely vulnerable segment of society. Insecurity of job tenure, appalling working conditions, the constant threat of closure of livelihood mark their lives. They live In very poor housing, have low levels of empowerment but are subject to high levels of industrial pollution. It is necessary to remedy inefficiencies so as to generate benefits for a large group of urban poor. It is also important to do something about the large number of vulnerable low-income workers in the small industries and those living near highly polluting clusters of industries. To achieve all this, a participatory approach is needed to enhance technological efficiency and the effective utilization of human and other resources. at PENNSYLVANIA STATE UNIV on September 18, 2016 mls.sagepub.com Downloaded from

notes and comments the foundry cluster in howrah : socio

Embed Size (px)

Citation preview

NOTES AND COMMENTS

THE FOUNDRY CLUSTER IN HOWRAH :

SOCIO-ECONOMIC DIMENSIONS

Jayanta Mitra"

The paper portrays an overview of a foundry cluster inHowrah, the plight of the unorganized workforce, andthe prospect of the iron foundry industry in the years tocome. An effort is made to understand the problems andprospects of the iron foundry units from within; and tostudy labour related issues, the origin of the labour classthe profile of the workforce, the characteristic patternsof the foundry units in Howrah, the working conditionsand future prospects of the industry. Finally, the paperproposes a viable solution to the problems, through apartnership approach, facilitating a development dialogue.

Introduction

The small-scale industry (551) sectoroccupies a position of prominence in theIndian economy. The sector accounts for asignificant proportion" of the country'sexport and employs considerablemanpower. The survival and growth of 551largely depends on their ability to innovate,improve operational efficiency and strikea balance between social concernecological functioning, quality of work andthe environment. Such a balance wouldensure sustainable development and can bea leading force for social change.Sustainable development requires that theenvironment and the economy be viewedas one system for decision-makingpurposes. Again policy choices are validonly if they support both welfare andenvironmental integrity. A comprehensiveand a viable strategy to ensure thesustainability of the 551 sector is obviouslya prerequisite for its very survival.

• Dr. Jayanta Mitra belongs to TERI (Tata EnergyResearch Institute), Darbari Seth Block, HabitatPlace, Lodhi Road, New Delhi.

Pollution control and technologicalefficiency in small industries cannot beexpected to follow from simply followingmodels that have been used for largeindustries. These operations are stillessentially rooted in a socio-economicculture that has been displaced indeveloped countries. Again the workers inthe small-scale sector constitute anextremely vulnerable segment of society.Insecurity of job tenure, appalling workingconditions, the constant threat of closure~nd ~oss of livelihood mark their lives. Theylive In very poor housing, have low levelsof empowerment but are subject to highlevels of industrial pollution. It is necessaryto remedy inefficiencies so as to generatebenefits for a large group of urban poor. Itis also important to do something about thelarge number of vulnerable low-incomeworkers in the small industries and thoseliving near highly polluting clusters ofindustries. To achieve all this, aparticipatory approach is needed toenhance technological efficiency and theeffective utilization of human and otherresources.

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

47 The Foundry Cluster in Hotoralt : Socio-Economic Dimensions

The discussion that follows is based onthe author's reflections based on hisinteractions with the employers and theworkforce of some foundry units. We alsoattempt to provide a framework for actionand for building shared objectives andshared strategies.

The discussion that follows is basedon the author's reflections based onhis interactions with the employersand the workforce of some foundryunits. We also attempt to provide a

framework for action and forbuilding shared objectives and

shared strategies.

Section I : Background of the FoundryCluster

The foundries in the Howrah-Liluahbelt are the manifestation of an urban modeof production coupled with an unorganizedlabour force. The Howrah cluster ischaracterized by informality, smallness,technical and structural limitations, use ofcontract labour, low levels of productionand a status quo orientation. Das (1999) hasaptly drawn attention to all these issues.Mukhopadhyay (1998) has opined that theexperience of the informal sector in Indiais similar to global trends. The increasinguse of capital along with the lack ofinvestment in the small scale industries(55Is) have thrown a large number oflabourers out of the market. Over the lastfifty years the pool of unemployed hasincreased. The informal sector couldactually be the basis of a survival strategy.

Along with globalization, the trendstowards increasing ancillarization and sub­contracting have increased. Generallyinvestors feel that their low labourestablishment costs, gives the informalsector especially in the intermediatemanufacturing industries a comparativeadvantage. Unfortunately, this costadvantage of the informal sector comes

from the exploitation of an unprotected andimpoverished labour force.

Who are these people, categorized asdaily wage labourers? What are theirorigins and what really has allured themto come to a competitive urbanenvironment and choose this kind ofemployment? Has it made any differenceto their lives? What is the level ofincongruence between their means oflivelihood and their needs? What is thecharacteristic pattern of the foundries?How are the working conditions? What isthe future prospect of these foundries?These are the common questions thatsurface in the mind when one thinks aboutthese foundries.

The Howrah foundry cluster was thefirst organized modern industrial cluster inIndia. It was set up in British days, whenCalcu tta became the political andcommercial capital of British India and theIndian Railway system was established byBritishers. The history of the foundrycluster, along with the jute industry, issynonymous with the rise of Britishmercantile colonialism in India. The clusterused to be considered the Manchester ofIndia. During the post independenceperiod, the medium sized firms owned bythe British were sold to the newentrepreneurial community of Marwaris.The smaller firms continued to remain withthe second genera tion of Bengalientrepreneurs. Continued availability ofcheap pig iron and coaking coal and a largepool of skilled labour ensured a competitiveadvantage to the cluster. In the same periodnew foundry industries came up in otherregions as well, like Agra, Batala,Jullundhar, Coimbatore, Nagpur andAhmedabad (Khandelwal, 1995). In theseventies, the Communist movement inWest Bengal led to major labour unrest thatresulted in the sale or closure of a largenumber of industrial units in West Bengal.A majority of the non-Bengali industrialists

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

Management & Labour Studies, Vol. 26, No.1, January 2001 48

moved out of the State and most of theBengali owned small foundries were closeddown. Subsequently one also noticed a shiftof skilled labour to Surat and Gaziabad.Eventually the Howrah cluster lost all itstraditionally built up competitiveadvantage. Technology remained stagnantwith non re-investment. Markets declinedto low value added products of the simplestkind and owners lost interest in theirbusiness. In the early nineties, however, thesituation changed drastically with theeconomic reforms launched in 1991. Whatremains today is an obsolete asset base andproduction facilities, a rising demand forits products and a class of owner-managerswho are uncertain about the prospects ofthe industry after the last two decades ofexperience (Sen, 1995).

What remains today is an obsoleteasset base and production facilities,

a rising demand for its productsand a class of owner-managers whoare uncertain about the prospectsof the industry after the last two

decades of experience

The Study

A pilot trip to some foundry units inHowrah was made, in March 1999 with theaim of gauging the possibility ofconducting a study from a socio-economicpoint of view. An attempt was made tointeract with the entrepreneurs, theworkforce, office bearers of the IndianFoundry Association (IFA) and officials ofvarious departments like the PollutionControl Board, the Howrah DistrictIndustries Centre, the Department of theEnvironment, Government of West Bengal.Besides, visits to research institutesprovided an interaction with someacademicians and enabled the collection ofpertinent information and literature thatcould help in preparing the theoreticalframework.

Subsequently around ten foundry units,both big and small, were visited in theHowrah-Liluah belt and separatediscussions were held with the employersand the workers (both the permanent onesand the daily wage labourers employed bythe contractors) as well as with labourcontractors. Partly structured discussionsbasically revolved around workingconditions, the profile of the workers, theirhealth status, their living conditions, theemployer-employee relationships, the roleof the unions.

Later the actual study was conducted,responses being elicited through astructured interview schedule. Finally, fortyone workers were contacted andinterviewed from five foundry units.

Apart from identifying areas of researchand subsequently pursuing the survey, aconscious attempt was made to introducethe idea of intervention at the unit andcommunity level and a follow-upmechanism through a participatory andpartnership approach with the involvementof TERI (Tata Energy Research Institute).The whole exercise was a part of TERI/seffort to understand the small-scalefoundries as a socio-technical system. Aneffort was also made to identify local NGOsthat could be brought in whileimplementing the outcome of the study.

Origin of the labour

Twenty to thirty years ago when smallscale industries created a demand for cheaplabour, a majority of these labourers camefrom the neighbouring states, Bihar(Chapra, Gaya, Gopalganj, Siwan, Ara,Motihari) and Orissa and some from UP.(Ajamgarh, Benaras, Balia, Gajipur,Faizabad). Apparently, these states hadfewer opportunities to offer especially tosmall farmers and landless labourers. Mostof these migrants came with the hope ofderiving economic benefit, but wereultimately caught in a difficult life

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

49 The Foundry Cluster in Howrah : Socio-Economic Dimensions

situation. During those days the localpeople were engaged in agriculturalactivities and land was the major source ofincome in West Bengal. Gradually with thegrowth of industries and the loss of land,many were left with only one choice:rushing to the city and joining the informalsector to earn their livelihood.

Twenty to thirty years ago whensmall scale industries created a

demand for cheap lab6ur, amajority of these labourers came

from the neighbouring states, BiharIChapra, Gaya, Gopalganj, Siwan,

Ara, Motihari) and Orissa and somefrom UP. IAjamgarh, Benaras, Balia,

Gajipur, Faizabadl.

Over time, the trend of an irresistibleinflow of population has undergone anobservable change. The population growthin the surrounding districts is much higherthan in the urban agglomera tion; yetmigration from the rural areas to the citieshas decreased during the last quarter of acentury, not only in West Bengal but also inIndia as a whole (Bremen, 1976). Goswami(1995) reports that in the two decadesfollowing 1955, a large number of migrantsarrived in the city both from inside andoutside the state. This influx also requireda forced expansion in the job types and ahigher degree of informalization ofindustrial activities.

The relative stagnation of industry had amultiplier effect on other job opportunitiesand this reduced intra-state as well as inter­state migration (Giri, 1998). However,Mukhopadhyay (1998) asserts that"Although the influx from the rural areas hasdecreased over the decades in Calcutta,migration from other states has swelled thepool in the city. The reason is the asymmetricgrowth of the rural sector in the state of WestBengal during the Left Front regime relativeto the other neighbouring states. This is due

to successful implementation of a landreforms programme in the state of WestBengal during the Left Front regime". Mostfoundry labourers today commute from theadjoining areas or districts, Howrah-Liluah,Bamangachi, Bagnan, Hooghly, Midnapur,Burdwan, North 24 Parganas. Some comefrom more distant places, work for the wholeweek, live in the locality and return to theirfamilies at the weekend. Those who migratedfrom other states long ago, settled in andaround Howrah.

Economic and Social Situation

The purchasing power of the work forcehas not gone up. They continue to live atthe subsistence level and the cycle ofpoverty continues. To supplement theirincome they work overtime, but that toodepends on job orders. Sometimes theylook for contract work even in otherfoundries, after their working hours in theunit where they are actually employed.Some also start small ventures, such askirana shops, papad making, packet making.The level of indebtedness seems to be highand is apparently a common concernamong the workers. However, it has beenobserved that labourers from other statesare more savings conscious. This seems tobe a common observation for almost allmigrants, particularly in the labour class.It is substantiated by a study conducted inthe Durgapur industrial belt whichrevealed that comparatively non-migrantshave lower living conditions than themigrants (Mitra, 1993).

The level of indebtedness seems tobe high and is apparently acommon concern among the

workers. However, it has beenobserved that labourers from otherstates are more savings conscious.

This seems to be a commonobservation for almost all migrants,

particularly in the labour class.

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

Management & Labour Studies, Vol. 26, No.1, January 2001 50

The hardships suffered by the workersis reflected in their life style and the factthat many travel ticketless whilecommuting by train. Clearly it waseconomic compulsion that allured them tocome to the cities and now to adopt meansthat are termed "illegitimate" by the largersociety. Clearly the means to achieveculturally prescribed aspirations are notavailable to many of these workers whorepresent the disadvantaged section ofsociety.

A more or less stable group entered thefoundry units and is functioning there fora long time. One hardly finds new entrantsin this industry, because of the hard labourinvolved, the unhealthy workingconditions and the health hazards. Also, thechoices in the urban environment havemultiplied and with some education andexposure among the youth, the level ofaspirations has also gone up. They are nolonger willing to till land or to stick to thetraditional family occupation. This sort ofoccupational shift seems to have becomemore pronounced due to the availability ofjobs in the informal sector, though theincome earned by labour is meagre. Despitethe labour, effort, energy that the workersput in, these are not at all proportionate tothe wages they earn. The average incomerange is Rs. 60/ to Rs. 70/- per day and theywork for 48 hours a week on an average.

Finally, while dialoguing with theworkers, one of the issues thatemerged was the social stigma

attached to work and life infoundry units. The workers are

often labelled by othersdhalaiwalas and looked down

upon.

Finally, while dialoguing with theworkers, one of the issues that emerged wasthe social stigma attached to work and lifein foundry units. The workers are often

labelled by others dhalaiwalas and lookeddown upon.

Profile of the Workforce

The workforce belong to the age groupof 30-40 years and most have primaryeducation or are illiterate. A few havecompleted their school education or eventaken ITl training. A majority were schooldropouts at an early age. This loweducational status leads to low self-esteemand perpetuates disadvantages throughoutlife and can have an impact on futuregenerations. since children of poorlyeducated adults run a risk of being poorlyeducated themselves. Basically the menwork in the foundry units; a few localwomen are also found in the cleaningoperations. Acute unemployment in thestate compels youth to take up anyavailable job to meet their basic needs. Thecensus (1991) data reveal that theparticipation of workers in manufacturing,processing and repairs in other thanhousehold industry, construction, trade andcommerce, transport and communicationsand other services is higher at the districtlevel than in the state. Thus in Howrah thepercentage is 33.14 while in West Bengal, itis only 12.06.

Local people have their own houseswhile those who migrated from other statesmostly reside in rented houses and somewhose families have been left behind arehoused within the premises of the foundryunits. Many who came 20-30 years ago havesettled in and around the Howrah-Liluahbelt. Those who are working in foundriesfor decades are mostly from familiestraditionally engaged in casting and whohave acquired skills. For many, theirgrandfathers were involved in patternmaking, their fathers were engaged inmoulding and now some of them are doingfettling or moulding jobs. However, thistrend is changing now with the loss ofinterest in foundry work owing to the hard

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

51 The Foundry Cluster in Howrah : Socio-Economic Dimensions

labour involved and the inhuman conditionin foundries. The relative deprivation at thedistrict level is much more compared to theoverall situation in the country. In WestBengal the relative deprivation indexindicates that the more urbanized regionshave higher levels of human developmentat the expense of the less urbanized ones(Bhattacharya, 1998).

Characteristic patterns of the foundryunits

Most structures of the iron foundryunits are old and cramped, and haveancient furnaces and equipment, little or noinvestment having been made to modernizethem over the years. The owner-managersare also third generation Bengalientrepreneurs, many of whom areinterested only in a safe monthly incomerather than building empires. Hence theyprefer to extract whatever is possible fromthe existing assets and equipment handeddown by their fathers, rather than investanew. Usually these small foundriesproduce a variety of low value, low marginiron castings used in industries in the smallscale sector within West Bengal (Sen, 1995).Poor quality, inadequate availability of rawmaterial, obsolete technology, industrialstagnation in West Bengal for the lasttwenty years, poor infrastructural facilitiesand shortage of power have caused thepresent state of affairs in the iron foundryindustries in Howrah.

Poor quality, inadequate availabilityof raw material, obsolete

technology, industrial stagnation inWest Bengal for the last twenty

years, poor infrastructural facilitiesand shortage of power have caused

the present state of affairs in theiron foundry industries in Howrah.

The Howrah-Liluah belt itself iscongested and the unplanned growth of

foundries has made it more so. The densityof population (per sq. km.) in Howrah is 2,542, compared to the state level figure of767. Besides, one wonders about the levelof compliance of these units withenvironmental regulations. The state istolerant or apathetic. The employmentpotential is relatively high in foundries andif these units closed down, the state wouldnot be able to absorb the labour force,producing unemployment, crime andpolitical instability. West Bengal does nothave enough resources to cope with thesechallenges.

Banerjee (1995) has provided threeclassifications of the foundries operating inHowrah. 50-60 per cent of 250 oddfoundries operate on a molten metal sellingbasis. The entrepreneurs produce onlymolten metals, which are then used by anumber of small operators, each employinga few workmen to produce castings toorder. The second group, comprising 25 to30 per cent of the operating foundries ofHowrah are run on a contract labour basis.A number of labour contractors areengaged on the basis of a contract systemof payment for good castings produced.The third and the smallest group,comprising 5 to 10 per cent of the foundriesare operated by entrepreneurs, employingtheir own labour. These are jobbingfoundries, executing orders secured fromlarge industries. Entrepreneurs without thehelp of any other professional run 95 percent of all the foundries. The availabilityof skilled labourers is dwindling day byday, since working in agriculture hasbecome more remunerative and peoplefrom the hinterland seem to be losinginterest in getting trained in foundrytechniques. Besides, the increased cost ofinputs, and the resulting low value addedcastings do not bring in enough profit tomake the entrepreneur interested enoughto invest in modernization anddi versification.

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

Management & Labour Studies, Vol. 26, No.1, January 2001 52

The Chairman of the Indian FoundriesAssociation believes that modernization orstructural change is not possible in morethan 50 per cent of the foundries becauseof their small size, lack of investmentcapacity and interest, total profitorientation, lack of social responsibility anda lack of vision. There is also the constantthreat of closure, demolition, anddisplacemen t.

The iron foundry units basically thriveon the daily wage labourers drawn mainlyfrom the surrounding areas. A fraction ofthe total workforce is directly recruited bythe unit, especially in the case of relativelylarge units and the rest are employedthrough labour contractors who are mostlyfrom Bihar, Orissa or UP. These contractorsare like middlemen who ensure a flow oflabour into these foundries. The biggerunits often off-load work to the smallerones. The average production range ofsmall units is 150-250 tons of castings a yearand they have 10-20 workers, while thebigger, more structured and betterorganized ones accommodate 80-100labourers or more.

A fraction of the total workforce isdirectly recruited by the unit,

especially in the case of relativelylarge units and the rest areemployed through labour

contractors who are mostly fromBihar, Orissa or UP.

The work in foundries revolves aroundmoulding, core making, melting, fettling,casting, pattern making. The whole job isdivided and is a group process in thefoundry. The workers who are directlyemployed by the unit get Provident Fund(PF) and health benefits in the EmployeesState Insurance (ESI) scheme and itshospitals. However, both employers andworkers agreed that the ESI hospitals areof poor quality and they are quite unhappy

about the doctors' indifference. Thecompany does not have any suchobligations towards the daily wagelabourers since contractors employ them.Sometimes on humanitarian groundsemployers get sick workers treated.

Unionism and Grievance Handling

We felt the presence of workers' unionsespecially while we were dialoguing withthe workers. The unions are affiliated topolitical parties. The major unions are CITU(Marxist), INTUC (Congress) and BharatMazdoor Sangh (Socialist). The researcheralso had a chance to interact with a fewunion leaders in the bigger units. Thelabourers usually perceive the relationshipwith the employers as exploitative, perhapsdue to the inherent inequality between thetwo classes. Caste is also associated withpower and status. This can help inunderstanding the power relations.Apparently, whenever problems crop up,the union leaders, employers andcontractors sit together to resolve issuesrelated to wage hikes or production. Itappears that the employers always seeunionism as a threa t to the smoothfunctioning of their units.

"Complaints from most employees areevidence of a problem or an opportunity.The difference lies in how the supervisorhandles them. It is important forsupervisors to take employee complaintsseriously and handle them properly, evenwhen they are from constant complainers"(Noronha, 1999). This will reassure well­intentioned employees that theircomplaints will be given the attention theydeserve and will discourage habitualcomplainers and whiners who simply usecomplaining as a way to get attention.

One of the employers thought thereshould be only one union and better stillno unions at all, especially in small units.He added that unionism can really makeno difference, given the reality in the

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

53 The Foundry Cluster in Howrah : Socio-Economic Dimensions

foundries. The labourers' view is that theyneed to be better organized and that thelabour movement has not really moved inthe desired direction. The unions are oftenfound to playa limited role of campaigningfor higher wages or bonus, but hardlyaddress issues such as working conditions,living conditions or other services thattouch the lives of the workers.

"It is important for supervisors totake employee complaints seriously

and handle them properly, evenwhen they are from constant

complainers:"

Working Conditions

On the whole, the working conditionsof these iron foundries are most unhealthy.There are hardly any toilet or bathingfacilities. Safe drinking water is notavailable in every unit. Some maintain atank for drinking water and some have atube-well, which is shared by workers ofadjacent foundries too. During the lunchhour the workers eat and rest at the siteitself which is dusty and hot.

Though records show that afterinstallation of pollution control devices thedust level has been checked, the realityspeaks for itself. One of the managerial staffof a unit thought the silicon dust particlescould cause silicosis and breathing troublelater in life. The risk is rated as high inmoulding and casting work since the workershardly use any safety devices. Apparentlythey feel uncomfortable with these devices.Perhaps experts could design devices thatsuit the workers' needs and reduce the risk.

The health hazards are greater inmoulding where most of the workers areengaged. Some of the common diseasesfound are breathing trouble andtuberculosis. The labourers also complainof eye irritation, body pain and generalweakness. Their overall awareness about

health is low and it is of great importanceto raise it. Health consciousness could alsoimprove the family's health. Sometimes theworkers are absent from work eitherbecause of illness or because they feel theyhave earned enough for the week andprefer to sit back and relax, since the workdemands hard labour. Workers attributeabsenteeism to their physical weakness;because the hard labour saps their energy,and the unhealthy working conditions andpollution add to the problem. It is also truethat since a more or less stable group oflabourers is functioning in these foundriesfor a number of years, they are aging andtheir ability to work at the same pace hasdeclined

In a nutshell, with a lack of propersanitation, drainage, ventilation, lighting,adequate measure to check the floor dust andthe gas fumes from the casting operations, thehealth of the foundry workers emerges as oneof the major concerns.

There have been certain initiatives bypublic bodies, unions and an NCO (NagarikManch) to address the issues of occupationalhealth in the state. "Shramjivi Hospital", theworkers' hospital, a unique experiment,established by the efforts of workers and theirunions reflects the collective consciousnessof society (Mukul, 1997).

In a nutshell, with a lack of propersanitation, drainage, ventilation,

lighting, adequate measure tocheck the floor dust and the gas

fumes from the casting operations,the health of the foundry workers

emerges as one of the majorconcerns.

Prospects of the Howrah Foundries

The future of the Howrah foundrieslooks bleak. Their chances of survival aredim owing to competition. Their only hopeis to modernize but most have neither the

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

Management & Labour Studies, Vol. 26, No.1, January 2001 54

capacity nor the willingness to invest. Manyunits will close down or be wiped out inthe years to come. The workers, however,hope that, as the factories are modernized,their productivity will be enhanced andtheir own incomes will increase. This is anoptimistic assumption; but one does notknow to what extent, earnings will betranslated into welfare benefits. The factremains that presently the units are moreconcerned about survival thanmodernization. Units are increasing facingstiff competition and their survival is beingquestioned. A sense of uncertainty has creptinto the minds of the employers as well asthe daily wage earners. This uncertaintyaccentuates the social and cultural fragilityof the labour already hit by the crisis intraditional values of family, religion, andcommunity. Das (1999) states that since1991, and the beginning of the era ofliberalization, globalization, andcompetition, modernization and links withthe outside world are indispensable for thefoundries' survival.

Banerjee (1995) remarks "A freshprofessional outlook only can save thewhole industry from its present decayingposition and push it towards a brightercompetitive industrial future", while Gupta(1995) highlights the fact that mostfoundries continue to manufacture low­value castings that were in demand decadesago and the attitudes of the owners are alsoold fashioned. Gupta (1995) also quotes thethen President of the Indian Institute ofFoundries: "If you are producing yourcastings the way you did 10 years ago, youare heading towards obsolescence"

Workers' Perceptions and Policy Issues

Their Personal Lives

The workers are all Hindus and only afew belong to the scheduled castes andother backward classes. Most of thelabourers dropped out from primaryschools due to poverty absence of rolemodels in the family and lack of

motivation. A few have completedsecondary school. The parents of theseworkers were mostly illiterate and wereengaged in farming, small business,carpentry, black-smithy and work in ironfoundries. As several of them worked infoundries in the past, their sons found anentry into foundry work an easy option.This reflects the easy availability of such jobin the unorganized sector and the demandfor cheap labour. It also shows the lack ofchoices and the workers' inadequateeducational attainments. Thus the cycle ofpoverty continues: low education, low levelof income, and low self-esteem alienatingthem from the main stream culture.However, despite their own educationalbackwardness and poverty, theyacknowledge the need for education, fortheir children. It is also encouraging to notethat an almost equal proportion of boys andgirls are continuing their studies. Mostly,it is the boys who drop out of schoolbecause of economic compulsions. This iscontrary to the usual gender bias, especiallyamong the marginalized poor, where thegirl child is usually discouraged fromcontinuing education, so as to do householdwork and enable the boys to continue theirstudies

Mostly, it is the boys who drop outof school because of economic

compulsions. This is contrary to theusual gender bias, especially among

the marginalized poor, where thegirl child is usually discouraged

from continuing education.

The foundry workers are mostlyemployed by labour contractors and tothese workers the industry has hardly anyobligations. Many of the labourers, whohailed from the adjacent districts of WestBengal, Bihar, Uttar Pradesh and Orissa,arrived years ago due to economiccompulsion, and non-availability of gainfulemployment in their own areas. They got

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

55 The Foundry Cluster in Houirah : Socia-Economic Dimensions

trapped in the hands of contractors whoensure a steady supply of cheap labour tothe foundries in Howrah. Despite the poorworking conditions and the hardships,these workers continue to work for theirown and their family's survival and manyhave worked in the foundries for twentyyears and some even for thirty years ormore - a real bondage.

Their Hopes and the Reality

The average monthly income of theselabourers is only around rupees twothousand, a substantial part of which goesfor family expenses (the average family sizeis 5), children's education, rent, medicines.The amount of labour, the effort and energy,the workers put in, bears no proportion tothe wages they earn. Often they are forcedto take loans from colleagues at theworkplace, or the employer or fromneighbours or relatives. Given thissituation, they can hardly save anything.Only a few have other sources of income tofall back on. Thus labourers who couldconstruct their own houses have rented outpart of these houses to other workers. Somealso work extra time to supplement theirincome and a few earn from agriculturalactivities back in their native villages or bycultivating small patches of land near theirpresent homes.

A closer look at the workers' housinggives some idea about their livingconditions. Some live in a semi-permanenthouses which they also own; some,especially the migrant labourers, live inrented houses located near the foundriesand a few are given space within thefoundry premises which they guard afterworking hours. Most reside close to theirworkplace; but a large number commutedaily from distant locations. They describetheir surroundings as 'village-like',indicating a feeling of community, in termsof living and income patterns, infrastructural inadequacies, hardships and alsosocial ties. This community feeling and

these social ties are the only insurance thepoor have to fall back on in moments ofcrisis. Some also live in slum like areaswhere they lack even basic amenities. Menwho have left their families behind in theirnative villages tend to share a rented roomwith others. Speaking of better livingconditions, the labourers suggested betterwages, medical facilities and someentrepreneurial opportunities.

As far as pollution levels are concerned,more than two-fifth (44 per cent) of theworkers feel that the pollution level is low,a little less than one fourth (24 per cent)consider it moderate and about 32 per centthink the pollution level is high. This showsthat some degree of compliance withenvironmental norms as well as sometechnological up-gradation has made adifference. However, when one combinesthe responses of all the workers, the issueclearly deserves much more attention.

More than half (54 per cent) of theworkers perceive that the degree of risk atwork is high and think the risks areprimarily health related, such as eyeirritation and respiratory trouble. Theworkers made some suggestions for theimprovement of working conditions:controlling the pollution level, more spacefor easier operations, mechanization andbetter lighting. Most of the workers also feltthe need for training in moulding relatedactivities to enhance their level ofperformance as also to develop other skills.

Most of the workers also felt theneed for training in moulding

related activities to enhance theirlevel of performance as also to

develop other skills.

Perceptions Regarding the Future whenthe foundries dose down

Some cannot visualize the future andare reluctant even to anticipate the

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

Management & Labour Studies, Vol. 26, No.1, January 2001 56

possibility of the foundries closing down.An immediate reaction of many was thatthey would look for similar jobs in otherunits. Some have skills in electric weldingand carpentry and would shift to a placewhere such skills could be used; some seesmall businesses such as selling vegetablesor fish and supplying of constructionmaterial as a choice and a f~w are open toany hard work, such as cycle rickshawriding to earn a livelihood. A final choiceseems to be farming that some would optfor in the event of closure of the foundryunits.

Remedial Measures

• The units need to be modernized.Labour productivity is low because ofobsolete technology and because wagesare not linked to productivity. It hasbeen estimated that with moderntechnology, productivity could go upfourfold.

• Working conditions call for substantialimprovement.

• Workers need training to increase theirskills.

• Government should show some interestin the foundries.

• Possible diversification of foundryactivities, where castings would berequired should be identified.

• Eco-friendliness needs to be ensured.

• Special importance has to be attachedto the health status of the workers andregular health check-ups made.

• A minimum level of services to theemployees needs to be ensured by eachunit.

This sketch provides an overallunderstanding of the foundries in Howrahand the issues they are grappling with.

Some General issues

There is need to :

i) form a follow-up group comprising theworkers, the unions, the employers, NGOrepresentatives such as a person from theTata Energy Research Institute (TERI)andESI doctors for collaborative action;

ii) strengthen ties between the stakeholders;

iii) prepare a long term agenda based onissues that could emerge through brainstorming;

iv) effectively co-ordinate between thefollow-up group and the healthdepartment;

v) foster community outreach;

vi) create a helpdesk to disseminateinformation concerning entrepreneurialschemes, possibilities of new ventures,ESI benefits, institutions that could caterto the needs (health, housing, education,security) of the daily wage earners andalso reach out to the foundry units whenrequired. This helpdesk could be a liaisonbetween the workers, employers, NGOs,financial institutions and other publicbodies. Such a help desk could be anextension of an already existingcommunity based organization in thearea.

Communities with poor housing and lowlevels of empowerment but subject to highindustrial pollution form an important targetgroup for assistance. Inefficiencies in clustersof small-scale industries must be correctedto generate benefits for a large group of theurban poor. One must begin with the largenumber of vulnerable low-income workersin small industries. This kind of approach willcall for structural changes and value shiftswhich will eventually bring aboutfundamental changes in the cultural ethos ofthose involved.

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from

57 The Foundry Cluster in Howrah : Socio-Economic Dimensions

References

1. Banerjee, A 1995. Howrah Foundries atCross Roads: Amrita Bazar Patrika(Saturday, September 23)

2. Bhattacharya, B 1998. Urbanization andHuman Development in West Bengal­a district level study and comparisonwith inter-state variation: Economic andPolitical Weekly (Vol. 33)

3. Bremen, J 1976. A Dualistic LabourSystem: A critique of the InformalSector Concept, Economic and PoliticalWeekly (Vol 11).

4. Census, 1991. Report of PopulationEstimates of India, Government of India.

5. Das, S.K. 1999. Small Scale Industries ofHowrah District: An Overview - a draftnote, DIC, Howrah.

6. Giri, P. 1998. Urbanization in WestBengal, 1951-91, Economic and PoliticalWeekly (Vol. 33) Nos. 47-48

7. Goswami,O 1995. Calcutta's Economy1918-1970: The fall from Grace in SChaudhuri (ed). Calcutta the Living City:The Present and Future, OUP, Oxford.

8. Gupta, S 1995. Foundry Industry Needto be cast in a New Mould, A Statesmansupplement (May, 29) p. 6

9. Khandelwal, R B1995.Foundry Industryin Howrah. The Economic Times, Calcutta(June 29, Thursday) p. 15

10. Mitra, J1993. A Study of the DevelopmentTrendand Crime Patterns in an IndustrialArea, M.Phil, Thesis (unpublished)TISS, Mumbai

11. Mukul 1997, Polluting IndustriesEnvironment and Workers Health - ACase for Intervention Economic andPolitical Weekly (Vol. 32)

12. Mukhopadhyay, I 1998. Calcutta'sInformal Sector: Changing Pattern ofLabour use, Economic and PoliticalWeekly (Vol. 33 no. 47 - 48)

13. Noronha, E 1999, Grievances andGrievance Handling Procedures(unpublished) XLRI [amshedpur.

14. Sen B. 1995. The Howrah Foundry Cluster:A Report on Field Visit for Evaluation ofCluster Modernization Programme.

15. Sen, A 1999. Floundering for aFoothold. The Economic Times, Calcutta(Sunday, 28 March).

at PENNSYLVANIA STATE UNIV on September 18, 2016mls.sagepub.comDownloaded from