Opinion: Linking Unrest in Labour Force to Unrealistic Laws Oversimplifies Complex Issues

India's Workplace Hierarchies: A Complex Web of Dignity and Disparities

In many Indian workplaces, the question of where to eat can reveal more than just lunch preferences. It exposes the subtle and often stark hierarchies that exist in everyday routines, reflecting broader societal norms and institutional legacies.

As an entrepreneur who employed thousands across logistics and manufacturing, I recall a group of blue-collar workers approaching me with an unusual request: they wanted their uniforms redesigned to match those worn by supervisors and managers. This moment stayed with me, suggesting that for many of these workers, the request was not about pay or hours, but about dignity and how they were perceived day to day.

This raises a harder question: what sustains these hierarchies today? Some of it may reflect institutional legacies like the British colonial era or the caste system, and some of it may come from social norms that persist to date. However, it is essential to identify and weed out practices that perpetuate those hierarchies.

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In contrast to the relative informality between employees and employers in the US, India's workplaces often institutionalize hierarchy in visible and invisible ways. I have repeatedly observed segregated canteens, separate dining areas for executives and workers, and even separate entry gates, distinct security protocols, and segregated restrooms.

These practices are not confined to traditional manufacturing setups. Even in modern corporate offices and retail environments, one encounters subtle yet telling distinctions, such as separate elevators for senior leadership. It is hardly surprising that our residential spaces, especially in urban India and in the glitzy towers of Gurgaon, mirror these divides.

Contractualization of Labour: A Complex Issue

Beyond these symbolic separations lie more structural disparities. Human resource policies, employment terms, and career advancement opportunities often differ significantly between managerial staff and blue-collar workers, especially when comparing permanent employees to blue-collar contract workers. Companies often cite India's antiquated labour laws as one reason for relying on contractual labour, arguing that hiring personnel contractually provides flexibility in uncertain markets.

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However, the scale of contractualization today is telling. According to the Annual Survey of Industries (ASI) 2023-24, 42% of workers in India's organized sector are employed on a contractual basis. Even some of India's most respected corporations, such as the Tatas or Infosys, outsource a significant portion of their low-wage workforce.

A closer look at income data reveals a deeper economic dynamic. The Periodic Labour Force Survey (PLFS) Annual Report 2025 shows that the average salaried worker earns approximately ₹21,000 per month, while the median income for a casual worker stands at just ₹9,000. These patterns raise the possibility that some firms rely more on cost advantages from labour than on productivity gains from skill, innovation, or automation.

India Inc. at an Inflection Point

The implications are not merely ethical; they are economic. Managers across sectors often express frustration when large segments of their contractual workforce leave en masse during festive seasons, sometimes not returning for weeks. Others switch employers after receiving marginal pay increases, despite years of training invested in them. These disruptions carry operational, financial, and occasionally existential costs.

India Inc. stands at an inflection point. It must initiate an honest and nuanced conversation about the future of work in this country. The challenge lies in striking a balance between the need for labour flexibility and the risks of overdependence on precarious employment, between avoiding the excesses of politicized unionism and ensuring basic protections for workers.

Ultimately, improving baseline security and workplace conditions will have economic benefits, including productivity and retention. Perhaps the most meaningful place to begin this transformation is also the simplest: the dining hall. And from there, into our broader social fabric, including the gated communities many of us call home.