L&T Group Reports Over 45,000 Engineers and Labourers Shortage

The diversified L&T Group is currently experiencing a significant manpower shortage, with over 45,000 labourers and engineers needed across its various businesses, according to Chairman S N Subrahmanyan. The flagship engineering, procurement, and construction sector is short of 25,000-30,000 labourers, while the IT and IT-enabled services sector lacks 20,000 engineers.

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Labour Shortage in Key Sectors

Subrahmanyan explained that the labour shortage is due to several factors, including the demand for specific skill sets that are not readily available. Additionally, clients are pushing for faster project execution, and events like elections and weather changes are impacting labour availability. He mentioned that adverse weather conditions have altered working hours on some projects, limiting work during afternoons except for essential tasks.

The company has been vocal about these challenges before. Last year, Subrahmanyan highlighted similar issues despite efforts to hire over 30,000 labourers. The company continues to face difficulties in recruiting the necessary workforce.

Impact of Higher Earnings Abroad

Chairman Emeritus A M Naik pointed out that many Indians are seeking employment opportunities abroad in places like Russia-Ukraine or Israel due to the prospect of higher earnings. This trend contributes to the domestic manpower shortage as skilled workers opt for better-paying jobs overseas.

To mitigate the impact of these shortages, L&T is providing various amenities to its employees. Subrahmanyan noted that the company offers transport facilities, health drinks, and food at project sites. These measures aim to improve working conditions and retain existing staff.

Initiatives to Address Skill Gaps

L&T has also established skill centres and other initiatives to address the skill gaps among its workforce. At any given time, the company employs over 4 lakh labourers with specific skills such as carpentry and masonry across its projects. These initiatives are part of L&T's strategy to manage the ongoing manpower challenges.

On the engineering front, Subrahmanyan highlighted an attrition rate of over 10%, which exacerbates the shortage of engineers. He stated that the company needs approximately 20,000 engineers to meet current demands and account for attrition.

The company's efforts to address these issues include various employee welfare measures and skill development programs. Despite these initiatives, L&T continues to grapple with significant manpower shortages across its businesses.