Looks like a crazy idea...
Let’s assume that, as per the labour law of India, a resource can work for 10 hrs/day.
· If 1000 people are working 10 hrs per day, the task will get over in 1 month.
· Corporate has achieved its goal of completing the task.
· Corporate pumped (1000X20000) 20 million rupees i.e., 20M INR in to the economy.
· 1000 families are earning 20000 per month.
· Corporate created a talent pool of 1000 people. If each family spends 10000 and saves 10000 in banks per month, 10 million will reach the market as direct revenue for the companies and 10 million will be available to the companies as Capital which is saved in banks. So, 20 million is back in the market.
In an economy of 1200 people who are in search of suitable jobs,
· Govt is able to provide employment for only 1000. So, remaining 200 people/families are unemployed.
· Govt is not able provide employment for 200 persons, which will increase the gap b/w the have’s (1000) and the have not’s (200), this lead to conflicts b/w the two classes.
· Due to unemployment, basic needs of the 200 people/families will not be met and then arises the gap between the have’s (1000) and the have not’s (200).This will therefore lead to conflicts among them and henceforth divides them into 2 different classes.
· The have not’s (200 eligible candidates) might end up in extremist’s activities to fulfil their personal needs.
· If the demand rises sharply, the corporate might force the employees to work 15 hrs per day which would result in undesired consequences on the social structure. So the corporate might need to struggle to achieve the target.
· Unfortunately, 100 resources are out of work and again the corporate is in trouble. It might not be able to meet the deadline with 900 work forces.
Let us think in a different way;
Govt has changed the policy to reduce the work hours to 8hrs per day,
· In order to meet the client commitment, the corporate has to recruit and train 1200 resources. This will be a headache to the corporate, as, it has to administer 200 extra resources.
· Corporate would now be paying 16000 per employee, as the administrative activities have consumed extra 0.8 Millions per month.
· Now if we see the economy, all the 1200 resources are employed.
· There is no question of have’s and have not’s in the knowledge society.
· All the 1200 families would be spending 8000 as expenditure 8000 as saving (as the salary levels go down spending of families also goes down), remaining 0.8 Million also will come into market as the corporate spends in Training and in Administration. So 20 Million is in the open market again.
· If the demand goes up sharply, employer can increase the work hours for certain duration (on work-pay basis) to fulfil the requirements, so corporate will not loose the market.
· Reducing work hours means spending more time with family community, which is the most desirable feature of any knowledge society for the inclusive growth.
Looks so simple...But what are the challenges ahead of the Country to do the same.
· The GoI (Govt of India) along with the Executive (Bureaucrats) would be thinking from the capitalistic corporate point of view to exploit the resources, instead of a sustainable society.
· The GoI would be under severe pressure from the corporate to do the same as it incur 0.8 Million extra cost to corporate which would eat-up the overall margins of the corporate.
· Employees might not co-operate to reduce their salaries as they are used to high salaries.
· Training and administration would be a big challenge to the country and the corporate.
So, the Govt with its supreme power “Law of the Land”, has to ensure that the demand and supply are met, thus resulting in growth and wellbeing of all sections of the society. It can now concentrate on amendments to the labour law to make sure that there is equality in the knowledge society, thus becomes an important step in its commitment towards inclusive growth.
If the Govt along with the bureaucrats implements this idea with an amendment to the law, we can increase the employment by 20 % :) more over we can have sustainable knowledge society.
Thanks for Reading,
Yogesh Thandava.
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