L&T Chairman SN Subrahmanyan discusses labor shortages, impact of welfare schemes, and changing work culture, sparking debate and criticism.
SN Subrahmanyan, chairman and managing director of Larsen & Toubro (L&T), has recently shared his views on various issues impacting the construction industry and the broader work culture in India. His comments have sparked discussions and even criticism from some quarters.
Labor Shortages and Welfare Schemes
Speaking at the CII South Global Linkages summit in Chennai, Subrahmanyan highlighted the challenges L&T faces in securing an adequate labor force. He pointed out that the construction industry is experiencing labor shortages, and he attributed this partly to the availability of government welfare schemes and a preference for comfort among workers. According to Subrahmanyan, many laborers are unwilling to move to work due to schemes like Jan Dhan, direct benefit transfers, Garib Kalyan Yojana, and MGNREGA. He stated that the company has to employ 4 lakh laborers, and faces an attrition rate of three to four times a year. This means they need to employ about 6 million people to maintain their workforce of 4 lakh.
He noted that L&T has adapted its labor mobilization methods, now using messages to contact carpenters who have worked with the company in the past. However, mobilizing such a large workforce annually requires a dedicated HR department specifically for labor.
Reluctance to Relocate
Subrahmanyan also addressed the reluctance of engineering graduates and IT professionals to relocate for work. He contrasted the present situation with his early career experiences, saying that graduates used to be willing to work anywhere in the country. He noted that if you tell an IT employee to come to the office and work, he says bye. He acknowledged the need for companies to adopt flexible policies to accommodate the changing preferences of the workforce.
Criticism from BJP MP Praveen Khandelwal
SN Subrahmanyan’s remarks regarding the impact of government welfare schemes on the willingness of laborers to work drew criticism from BJP MP and Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal. Khandelwal described Subrahmanyan’s statement as “misleading, insulting, and demoralising” to India’s hardworking labor force.
Khandelwal asserted that it is unacceptable to undermine the contributions of the labor force to India’s growth. He stated that Subrahmanyan’s remarks are not only misleading but also disrespectful and demoralising to the significant progress and development achieved at the grassroots level in India.
Earlier Comments on Work Hours
It’s worth noting that Subrahmanyan’s comments on labor and work culture are not new. Earlier, he had sparked an online debate by advocating a 90-hour work week and suggesting employees should even give up Sundays. This statement was also criticized as being impractical and disregarding work-life balance.
Broader Context
Subrahmanyan’s observations come at a time when India is focused on infrastructure development and economic growth. Infrastructure projects require a large and mobile workforce, and any factors hindering labor mobility can pose challenges. At the same time, government welfare schemes play a crucial role in providing a safety net for vulnerable populations. The discussion around these issues highlights the complexities of balancing economic development with social welfare and evolving work preferences.
Key Developments Shaping the World
Subrahmanyan identified human migration, tech transition, energy transition, and sustainability as key developments shaping the world.
Sources: https://timesofindia.indiatimes.com/business/india-business/reluctance-of-workers-to-relocate-poses-a-challenge-lt-md-sn-subrahmanyan/articleshow/118138246.cms
https://www.indiatoday.in/india/video/lt-chief-discusses-government-schemes-affecting-worker-migration-ytvd-2679234-2025-02-13
https://www.livemint.com/politics/news/bjp-mp-slams-l-t-chairman-subrahmanyan-for-insulting-demolarising-remarks-on-indian-labourers-11739411996839.html