Labour Contractors and Global Production Networks: The Case of India’s Auto Supply Chain

Tom Barnesa*, Krishna Shekhar Lal Dasb & Surendra Pratapca Institute for Religion, Politics and Society, Australian Catholic University, Melbourne, Australiab Department of Civic and Ethical Studies, College of Social Science and Humanities, Wolkite University, Ethiopiac Centre for Workers Education, New Delhi, IndiaCorrespondence Address: Tom Barnes, Institute for Religion, Politics and Society, c/o Locked Bag 4115, Fitzroy MDC, Australian Catholic University, Melbourne, Victoria 3065, Australia. Email: tom.barnes@acu.edu.auAn Online Appendix is available for this article which can be accessed via the online version of this journal available at http://dx.doi.org/10.1080/00220388.2014.983908AbstractResearch on labour in global production networks has raised serious questions about the role played by labour contractors. This article uses a case study of automotive components production in north India to show how labour contractors assist firms to adapt to the rigours of competition in supply chains. We demonstrate that a regional contract labour system has enabled employers to keep wages low, increase firm flexibility, offload the burden of monitoring and controlling workers and undermine collective bargaining and trade union rights. These problems further expose serious weaknesses in the implementation and enforcement of labour laws in India.