Intensifying exploitation of workers in manufacturing

According to the  Annual Survey of Industries (ASI) wages as percentage of net value added has been declining over the last two decades.

Some broad trends in the country's manufacturing sector show that since the liberalization of the economy (taken from 1990-91 because 1991-92 saw unduly depressed profits) till 2011-12, the latest year for which ASI data are available, profits have gone up at a compounded annual growth rate (CAGR) of 19.15%. [this is the growth rate measured year on year, from 1990-91 to 2011-12, over a period of 21 years).

We can compare how wages have grown in the same period. It turns out that the growth of wages between 1990-91 and 2011-12 has been at a CAGR of 10.12%. Growth in profits has been much higher than the growth in wages. If we look at it another way, the share of wages in net value added fell from 25.6% in 1990-91 to 11.9% in 2011-12 [Net value added is the difference between the value of the physical inputs and the value of the output, minus the value of wear and tear of machinery employed in manufacturing]. This means that the rate of exploitation of labour in manufacturing increased from 3 times (300%) to 7.5 times (750%).

At the same time, the average rate of growth in the Consumer Price Index for Industrial Workers has been 7.3% over the period, while average wages per worker have gone up at a CAGR of 7.5%. That means the rise in real wages has been close to nothing.

This intensifying exploitation in the manufacturing sector has been possible because of blatant violations of labour laws that the State has deliberately permitted. Employment of contract workers for jobs of a permanent nature, employment of “trainees” who remain in this category for years, and similar tricks have been used by the capitalist to drive down the wages. The right  of workers to forms unions has been attacked in the name of creating favourable conditions for investment.

The working class must unite to strongly oppose this intensifying exploitation. The graph below clearly shows how much the workers are exploited and the necessity to fight for the elimination of wage exploitation.


Share Everywhere

physical    liberalization    Intensifying exploitation    economy    Jun 1-15 2014    Struggle for Rights    Economy     Popular Movements     Privatisation    Rights    




Parties of the capitalist class claim that there is no
alternative to the program of globalisation,liberalisation
and privatisation. The truth is thatthere IS an alternative.

The alternative is to reorient the economy to fulfil people’s
needs instead of fulfilling capitalist greed. This is the
program for the Navnirman of India.

Click on the thumbnail of the election manifesto of a CGPI
supported candidate for Lok Sabha to download the PDF.



This document, What Kind of Party?, was presented by
Comrade Lal Singh on behalf of the Central Committee
of the Communist Ghadar Party of India to the Second
National Consultative Conference held December 29-30, 1993.

Click on the cover image to download the PDF


Click to Download PDFThe first part of this pamphlet is an analysis of facts and phenomena to identify and expose the real aims behind the Note Ban. The second part is devoted to a critical appraisal of the government’s claims that it will reduce inequality, corruption and terrorism. The third part is what Communist Ghadar Party believes is the real solution to these problems and the immediate program of action towards that solution.

(Click thumbnail to download PDF)

These Elections are a FarceInterview with Comrade Lal Singh, General Secretary of Communist Ghadar Party of India by Comrade Chandra Bhan, Editor of Mazdoor Ekta Lehar

(Click thumbnail to download PDF)

Manifesto 2014Unite around the program to reconstitute the Indian Republic and reorient the economy to ensure prosperity and protection for all!

(Click thumbnail to download PDF)

Click to Download PDFInterview with Comrade Lal Singh, General Secretary of Communist Ghadar Party of India

by Comrade Chandra Bhan, Editor of Mazdoor Ekta Lehar

(Click thumbnail to download PDF)