Bicycle industry in crisis due to labour deficit | punjab | Hindustan Times
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Bicycle industry in crisis due to labour deficit

punjab Updated: Jul 08, 2012 19:16 IST

The bicycle industry is facing serious crisis in Ludhiana due to almost 50% labour shortage, particularly from Bihar.

Despite offering incentitives like free housing, mobile phone and gas facility to the workers, there is labour deficit mainly from Bihar in Ludhiana.

Bihar, which is popularly known as "India's bicycle capital" does not have enough labour. Many small cycle manufacturing units which are unable to cope up with this problem have shut up shop.

Bihar labour minister Janardan Singh Sigriwal told PTI that as per his department's estimate, there was a fall of almost 30% unskilled labourers from Patna.

He said that large scale development works like construction of roads, bridges, schools and hospitals were already providing them employment in Bihar itself.

There are nearly 5,000 small and big bicycle manufacturers in Ludhiana. Some of the leading names include Hero, Avon and Rolex.

DS Chawla, former president of United Cycle and Parts Manufacturing Association, said that the profits of those continuing in this trade had almost halved.

Labour contractors were offered a high commission for bringing labour whereas some companies had assured free motorcycle to the suppliers bringing in large number of labourers, Chawla said.

He added wages had gone up and the labourers were offered Rs 6,000 cash in hand as compared to Rs 3,500 earlier but, in spite of all these the labour crisis persists in Ludhiana, a trade hub of Punjab, he said.

PD Sharma, president of Apex Chamber of Commerce and Industry, Punjab echoed similar views.