direct labour


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direct labour

  1. 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.
  2. 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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

direct labour

  1. 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.
  2. 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
References in periodicals archive ?
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.
Absenteeism and low productivity have been blamed for heavy losses run up by the council's direct labour organisation which handled the repair work.
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.
Ayoola Bolaji inspected the on-going direct labour work on the road on Feb.
Mike Drummond, Uddingston, near Glasgow I FEEL the need to tell readers that North Lanarkshire Council no longer employ a direct labour organisation.
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.
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.
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.