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

Research 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.