Larsen & Toubro's (L&T) Chairman SN Subrahmanyan has drawn fresh criticism following controversial remarks about labor mobility and the work culture in India, wherein he suggested many workers are unwilling to seek employment opportunities beyond their local comforts due to the benefits of government welfare schemes.
Speaking at the CII’s Mystic South Global Linkages Summit 2025 held on Tuesday in Chennai, Subrahmanyan highlighted growing difficulties faced by the construction industry. He pointed out, "Labour is not willing to move for opportunities... Maybe it is due to the various government schemes & DBTs (direct benefit transfers) available to them," illustrating the influence these programs have had on worker mobility.
His comments bring to the forefront the changing perceptions and motivations of the workforce amid shifting economic scenarios, especially for lesser-skilled workers who often rely on government benefits. He claims this reluctance derives from the local economy being stable or perhaps even thriving, which discourages workers from seeking employment elsewhere.
Subrahmanyan emphasized the growing challenge this creates, stating, "So, I have to recruit 16 lakh people to get 4 lakh laborers due to high attrition levels." This suggests the construction industry is experiencing significant hurdles as it attempts to maintain sufficient staffing levels for its numerous large-scale projects across the nation.
The remark follows on the heels of last month's outrage over his suggestion of implementing a 90-hour work week, which led to widespread debate around work-life balance within the corporate sector. During the same speech, he had controversially stated, "What do you do sitting at home? How long can you stare at your wife? Come on, get to the office and start working," questioning the motivation behind workers' reluctance to engage with their jobs.
His previous statements have drawn varied reactions from other industry leaders. Business magnates such as Adar Poonawalla, Anand Mahindra, and ITC’s Sanjiv Puri have spoken out about the necessity to maintain work-life balance for long-term productivity and mental health. Their remarks underline the tension between existing corporate expectations and the reality of workers' well-being and preferences under changing socio-economic conditions.
The discussion surrounding Subrahmanyan's recent comments has even reached the floor of Parliament. Government representatives clarified to lawmakers, stating there are no proposals to expand work hours to 70 or 90 hours per week, indirectly supporting employee concerns highlighted during public debates this past year.
Critics argue the need for a more humane approach to labor mobilization, as highlighted by recent studies indicating detrimental health impacts from extended working hours. The pre-Budget Economic Survey warned against excessive working hours, citing effects on mental well-being and overall productivity levels of workers who are under prolonged stress.
There remains a broader discourse on labor preferences, particularly among the youth and tech employees. Subrahmanyan noted the trend whereby younger tech professionals exhibit reluctance to relocate, stating, "Today, if I take someone from Chennai and ask him to go to Delhi and work, he says 'bye.'" This shift shows not just the changing workplace preferences but indicates broader societal changes over generational attitudes toward work—something Subrahmanyan himself acknowledges as he expressed the need for organizations to adapt their human resources policies.
Subrahmanyan's comments have sparked discussions on how Indian corporate culture needs to evolve. He referred to his networking with senior peers as they navigate this new labor environment, saying, "It's a funny world which we are trying to live in, and many of us wearing slightly more white hair are trying to understand it."
Overall, the current conversations surrounding labor mobility and workplace flexibility appear to be pressing matters for Indian companies. With businesses like L&T confronting severe challenges related to workforce availability, addressing these issues with empathy and innovation may be key to ensuring the sustainable growth of India's infrastructure and its economic stability.