Labour Crisis at L&T
| Case Code: HROB284 Case Length: 10 Pages Period: 1938-2025 Pub Date: 2025 Teaching Note: Available |
Price: Rs.300 Organization: Larsen & Toubro Limited Industry: Conglomerate Countries: India Themes: Human Resource Planning, HR Planning, HR Policy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Labour Crisis in the Construction Sector
According to industry executives and HR experts, a combination of the availability of several welfare programs, behavioral changes brought on by the pandemic, and an unexpected surge in infrastructure projects had caused a decline in labor migration, resulting in a shortage of manpower. Reportedly, construction companies were already struggling due to the post-COVID worker exodus, and severe weather conditions in various parts of the country had only made matters worse and lowered labor turnout at project sites. In 2025, Kamani Engineering Corporation (KEC) International Ltd., one of L&T’s rivals, also reported a shortage of nearly 5,000 workers, leading to project delays. Hindustan Construction Company, another of L&T’s competitors, was also grappling with manpower shortage..
L&T’S Labour Pains
In 2024, L&T flagged a severe shortage of skilled labour. The shortage was not limited to labour; the company was facing a dearth of engineers too. Highlighting the immediate manpower gap affecting the company’s operational demands, Subrahmanyan said, “At present, we are facing a significant deficit of approximately 25,000 to 30,000 laborers required at our project sites. We require about 20,000 engineers to boost our capabilities in these crucial areas,”..
Road Ahead
As per industry experts, the construction business used a lot of human labor, despite the developments in digital technology. Although the industry had over 8 million employees worldwide, it was suffering from a persistent labor shortage, particularly in high-skill fields. To make matters worse, an International Labor Organization (ILO) report found that as of 2023, India had the highest number of fatal accidents on construction sites worldwide. “The best estimate is that there are 38 fatal accidents every day across construction sites in India,” said Sanjay Singhvi, labour law practitioner. According to a 2016 study conducted by IIT Delhi and the National Institute of Technology Surat, there were 11,614 fatalities reported at construction sites yearly..
Exhibits
Exhibit I: Timeline of Milestones Achieved By L&T
Exhibit II: L&T’s Key Infrastructures
Exhibit III: L&T’s Business Segments
Exhibit IV: Average Work Hours per Employee in World’s Largest Economies
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