Women's Rise In Blue-Collar Jobs & Boardrooms - 1 In 5 Board Members Now Female

It's a story that begins with a bold postcard and unfolds into a promising narrative of women taking the reins in the manufacturing sector. From challenging stereotypes to reshaping the workforce, women are stepping onto shop floors and corporate boards like never before. 

Empowering the Blue-Collar Workforce

Decades ago, Sudha Murty, a pioneer in her own right, confronted gender discrimination head-on. In 1974, she took a stand against a job notice that declared, "Lady candidates need not apply" at Telco (now Tata Motors). Her courageous postcard to JRD Tata set the wheels of change in motion, leading her to become the first woman on Tata Motors' shop floor.

Today, Tata Motors is on a mission to increase the number of women on its shop floor to 25 percent, with 23 percent of new hires already being women. They're not alone in this endeavour.

According to Deloitte's Blue Collar Workforce Trends Report 2023, the percentage of women in blue-collar jobs has risen to 8 percent, marking a significant shift from less than 2 percent a couple of decades ago. Sectors like life sciences, automotive, and engineering design are leading the charge, offering not just diversity but premium pay and skilled opportunities.

Steeling Their Resolve

Soni Singh, area manager at Tata Steel, was among the first women to join the company's trade apprenticeship program. Over the years, the company has seen a remarkable increase in the number of women at intake level, with a significant 45–50 per cent. Women like Singh have ventured into various roles, even in the challenging environments of steel plants. Now, Tata Steel is planning an all-women-operated 'pink' coke oven battery unit.

JSW Steel has paved the way, too, with women managing production lines, including a coil-to-plate and sheet processing unit entirely run by women. Their goal is to increase women's representation to 15 percent by 2030.

Pioneering Change

Ashutosh Telang, the Chief Human Resources Officer of AM/NS India, highlights that while progress has been made, there's much more to achieve. The Anand Group plans to increase women's presence on the shop floor from 20 percent to 30 percent by 2025. Some of their units already boast female representation as high as 70–100 percent.

Ashok Leyland has implemented an "all-women production line" at its facility in Tamil Nadu, and Ola Electric's Future Factory proudly sports a 100 percent female workforce.

Southern states in India have also set remarkable examples of higher women's representation on the shop floor. The ecosystem of companies like Apple Inc. and its vendors in Tamil Nadu has the highest number of female employees. ITC's integrated consumer goods manufacturing and logistics facilities also reflect the same trend, with women comprising 50 to 75 percent of the workforce. Studies have shown a 26 percent increase in female employees on the shop floor in Karnataka and Tamil Nadu.

According to a study conducted by CIEL HR, there has been a 26% increase in female employees on the shop floor in 2023 over the previous year in Karnataka and Tamil Nadu. The female-to-male ratio in this function has also improved, with a notable shift from 1:10 in 2022 to 4:10 in 2023.

The Road Ahead: Tackling Barriers and Gender Pay Gap

While these advances are promising, they haven't come without challenges. Women breaking into the blue-collar workforce often face skepticism, especially in traditional industries with less automation, operating in remote locations, and emphasising physical labour. The gender pay gap remains an overarching issue, affecting both blue-collar and white-collar roles. The path towards gender justice in Indian workplaces necessitates addressing all these factors, making it a complex but vital journey.

The push for gender diversity is driven by several factors, including expanding the talent pool, sustaining economic growth, reducing attrition, and fostering a positive and productive work environment. Moreover, gender diversity is a critical component of ESG (environment, social, and governance) reporting, further underlining its importance.

More Women in the Boardroom: A Promising Trend

The shift towards gender diversity isn't confined to blue-collar jobs alone. The boardrooms of India Inc. are also experiencing a transformation. With the implementation of the Companies Act in 2013, which mandated at least one female director on boards, the representation of women in boardrooms is on the rise. The average number of female board members in Nifty-500 companies now stands at one in five.

However, there is still room for improvement. Currently, 45 percent of Nifty-500 companies have just one female director. Larger boards continue to display a dearth of women directors, with 81 companies having just one female director out of ten or more board members. For example, L&T, with a 19-member board, has only one female director.

But there are standout examples of progress in gender diversity on boards, with some companies, including Colgate Palmolive, Godrej Consumer Products, Jyothy Labs, Vinati Organics, Apollo Hospitals, Sundram Fasteners, and New India Assurance, leading the way with at least half female board members.

Striving for Change: The Road to a Balanced Workforce

While there is no shortage of qualified women, their underrepresentation on boards often results from a lack of board experience and minimal self-promotion for these roles. The process of promoting more women to boards is still in its early stages in India, with more assertive measures needed to ensure gender diversity. Unfortunately, some public sector undertakings (PSUs) have no female directors on their boards.

In the global context, boards of S&P 500 companies worldwide boast one in three female directors, driven by investor pressure and corporate efforts to diversify boards. The UK government-backed Hampton-Alexander Review aims for 40 percent female representation on FTSE-350 boards by the end of 2025.

As more women step into leadership roles, they inspire others to follow suit. The path to gender equality may still be long, but with determined women leading the way, the future looks bright. Women on shop floors, in corporate boardrooms, and across industries are rewriting the narrative of the Indian workforce.

Suggested reading: Gender Diverse Companies Likely To Outperform Their Counterparts Now More Than Ever