Cheap labour changed the face of global business landscape. Industries and services that were labour intensive almost ceased to exist where manpower was expensive. Economies like China and India found a place in the reckoning of the fastest growing ones.
But it seems that the law of economics is catching up with the developing nations as well. What were once the havens of low cost labour are now finding the labour costs pinching hard. Chennai which got nicknamed ‘Detroit of India' for housing manufacturing hubs of some of the biggest automakers globally is witnessing labour protests.
36 strikes, 13 lockouts, loss of 2.1 lakh mandays are striking numbers that ailed the auto industry in south India in 2009. Although these were marginally lower than those in 2008, labour trouble is only seen increasing. While most of the dissent was for higher wages and better working conditions, labour unions have also attained prominence.
At a time when developed nations themselves are rethinking their outsourcing strategy, India's inability to retain her cost advantage could turn out to be a major disadvantage.
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