direct labour

that part of the labour force in a firm which is directly concerned with the manufacture of a good or the provision of a service. Direct labour cost depends on the hours of labour worked by factory operatives engaged directly in making a product. Provided that wage rates remain constant then direct labour cost will tend to vary exactly with output. See VARIABLE COST, STANDARD COST.
workers employed directly by local or central government to perform tasks rather than such tasks being contracted out to private-sector companies. See CONTRACTING-OUT, INDIRECT LABOUR.

direct labour

1that part of the labour force in a firm that is directly concerned with the manufacture of a good or the provision of a service. Contrast INDIRECT LABOUR.
workers employed directly by local or central government to perform tasks rather than contracting out such tasks to private-sector companies. For example, a local authority might employ its own permanent construction workers to repair council houses rather than putting such repair work out to local firms. See VARIABLE COST, PRIVATIZATION.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive

This study examines two options namely: design-bid-build and direct labour methods.

Comparing the planning and performance of direct labour and design-bid-build construction projects in Nigeria/Planavimo ir veiklos efektyvumo palyginimas, Nigerijos statybu projektuose naudojant tiesiogini darba ir taikant tradicini pirkimu metoda

As regards cost of projects up to N100 million (Naira); the design-build was rated the most suitable to achieve cost certainty, followed by lump sum contracts, management contracting, direct labour and BOOT system in that order.

Benchmarking the performance of construction procurement methods against selection criteria in Nigeria

When direct labour is reduced through improved equipment and facilities, variable costs fall but fixed costs rise.

Management accounting-performance evaluation: Ian Herbert considers the effects of increased investments in capital equipment and lower direct labour content on standard costing

Absenteeism and low productivity have been blamed for heavy losses run up by the council's direct labour organisation which handled the repair work.

New era as housing repairs are privatised

In Figure 2, we provide a summary of results by three company types: non-users of standard cost systems; users of standard cost systems that allocate fixed and variable overhead costs by direct labour; and users of standard cost systems that do not use direct labour to allocate overhead costs.

The role of management accounting in the development of a manufacturing strategy

Ayoola Bolaji inspected the on-going direct labour work on the road on Feb.

FERMA begins repair work on Yenagoa-Imiringi-Oloibiri road

Mike Drummond, Uddingston, near Glasgow I FEEL the need to tell readers that North Lanarkshire Council no longer employ a direct labour organisation.

Your texts

Sir - i have been wondering if and when the "Labour" Party is planning to do something about the prevalence of "Work Agencies." It appears that more and more employers are using the agency system rather than employing direct labour, thereby denying these workers the same rights that direct labour employees enjoy, such as holiday pay, sick pay, redundancy packages and pensions.

Letter: Workers' rights

The three convenors are among 15 workers out of 140 employed at the street lighting and highways direct labour organisations to be paid in excess of pounds 50,000 a year.

Union rep on pounds 60,000

We are finalising the details of a partnering arrangement with a main contractor, but our workforce will remain very much involved in the procurement of both of these projects." Ian still sees a role for direct labour, even in the larger commercial schemes.

Step change at Adderstone