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Slow start for Mohali industries, production down to 10% after lockdown norms ease
Ramping up production difficult after labour exodus; staff salary cuts not making things easier
Two weeks after Covid-19 restrictions were relaxed and industries allowed to start work to revive the district’s economy, production is down 10%, only 40% labour remains after the migrant exodus and employee salaries have been slashed from 30% to 60%.
Unable to bear losses after production was completely shut down by March-end and April, businessmen have been swift in imposing salary cuts, which has been demoralising for staffers already worried about an uncertain future. Most of the units are grappling with labour shortage, unable to increase productivity with 60% migrants leaving the state.
Ever since industries opened on May 4, production levels have fallen 10%, claim industrialists, because of which salaries were cut. Some people also say they had to sign agreements for employers wanting to avoid legal action in case they fired anyone.
“We’ve managed 10% production in the last two weeks. Earlier we used to supply tractor parts for Rs 80 lakh per month, but in the past two weeks we’ve managed sales worth Rs 6 lakh and not been able to meet monthly expenses of salaries, power bill and transportation,” says Mukesh Bassi, managing director, India Harness, which manufactures tractor parts.
On salary cuts, Vivek Kapoor, vice president of Mohali Industry Association (MIA) says, “We requested the state and Central government to support small industries and help them pay salaries for the lockdown period from either the Employees’ State Insurance Corporation (ESIC) funds or from the labour cess funds. It would be appreciable if someone could pay from their own funds, but we could at least take care of the daily needs of the staffers.”
An employee at an industrial unit in Phase-8-B, who had his salary cut by 50%, however, said it was strange that a month of lockdown had forced companies to slash salaries. “These units have been making profits for several years and now they are not able to pay staff after a month.”
There are around 13,000 MSME units and 49 major industrial houses in Mohali district employing 1.30 lakh workers.
INDUSTRIAL AREA: FACTS YOU MUST KNOW
About 10 industries became operational in Mohali in 1978, growing to about 10,000 units, including manufacturing and IT/ service industry. The Industrial Area is divided in different phases: Phase 1 to 4 fall under the Greater Mohali Area Development Authority (GMADA), Phase 7, 8-A and 8-B under the Punjab Small Industries Export Corporation Limited (PSIEC) and Phase 9 under Punjab Infotech.
