Larsen and Toubro chairman and managing director SN Subrahmanyan on Tuesday noted that construction labourers are showing a reluctance to work, citing the existence of welfare schemes and increased comfort as contributing factors. He highlighted the unique challenge faced by India where, unlike in other parts of the world experiencing significant migration, there is a notable trend of individuals being disinclined to relocate for employment opportunities in the construction industry.
Subrahmanyan observed that while many countries face substantial migration issues, India presents a distinctive challenge as many people are hesitant to relocate for work. His remarks in January 2025 regarding employees working 90 hours per week stirred up controversy and sparked widespread debate.
Addressing the CII South Global Linkages summit in Chennai, Subrahmanyan said: “We have to employ 4 lakh laborers and the attrition rate is three to four times a year, so for employing 4 lakh laborers we employ about 6 million.”
He further stated that there have been significant changes in the method of labor mobilization. In order to acquire carpenters for a new site, the company now utilizes communication methods to reach out to a pre-existing list of carpenters with whom they have previously collaborated. The decision to accept the job then lies with the workers themselves.
“That is a method of mobilisation. But at the same time imagine now to mobilise 1. 6 million people every year. So we have created a separate department called HR for Labor which does not exist in the company but it does exist. And sometimes I even sit on that,” he said.
He explained that people are not willing to come for various reasons, because of the bank accounts (Jan Dhan), the direct benefit transfers, Garib Kalyan Yojana, the MGNREGA schemes and not wanting to move from rural places preferring comfort.
Subrahmanyan explained that the company has a standardised method for labour mobilisation including a dedicated HR team for labour where he is currently involved. “But there is difficulty despite this, because labour is not willing to move for opportunities… Maybe their local economy is doing well, maybe it is due to the various government schemes & DBTs available to them, but they are not willing to move.”
Subrahmanyan also observed a reluctance to move for job opportunities among engineers and other professionals. He recounted an example from his own experience, sharing that in the past, employees were willing to relocate for work assignments.
However, he noted that nowadays, employees are more resistant to moving for their jobs. He emphasized the need for flexible HR policies to adapt to the changing landscape of work. This trend poses a challenge to the nation-building efforts of L&T and the industry as a whole.
Last month, Subrahmanyan caused a stir online when a video of him advocating a 90-hour work week went viral. The undated video featured Subrahmanyan suggesting that employees should consider giving up their Sundays as well.
“How long can you stare at your wife,” he asked.
“I regret I am not able to make you work on Sundays. If I can make you work on Sundays, I will be more happy, because I work on Sundays. What do you do sitting at home? How long can you stare at your wife? How long can the wives stare at their husbands? Come on, get to the office and start working,” he added.
Following backlash online, the company responded by stating that Subrahmanyan’s comments were meant to be taken lightly and had been misinterpreted.
