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UP: Won’t be able to pay salaries, say owners of 400 shut units
Due to closures of 95% factories and large dip in production due to lockdown, Chamber of Industries and Development (CID), has expressed inability to continue paying salaries to hundreds of workers employed with 400 big and small factories in Gorakhpur Development Industrial Area.
Due to closures of 95% factories and large dip in production due to lockdown, Chamber of Industries and Development (CID), an umbrella body of industries has expressed inability to continue paying salaries to hundreds of workers employed with 400 big and small factories in Gorakhpur Development Industrial Area(GIDA).
The move could severely affect over 12,000 workers in the region.
GIDA, which witnessed a record investment of Rs 1300 crore in UP government’s flagship investors’ summit in Lucknow in 2017, houses 400 big and small factories manufacturing range of goods from sanitary pads, medicine, syringes, iron rods, cement, biscuits and pan masala. These factories had open avenues for locals and had checked the migration in a big way.
On Tuesday, Praveen Modi, general secretary, CID, shot off a letter to commissioner, industries and establishment department, Lucknow, saying the salaries could not be paid for the month of April.
“The factories are hit hard by the lockdown. The raw material in stock is rotting and finished goods are lying dumped in absence of transport. Payment from the market is completely blocked . Owners have incurred loss of hundreds of crore of rupees and they are in no situation to pay salaries until things settles down and production resumes,” he said while fearing that many factories could shut permanently.
Earlier, the administration had given permission to operate units involved in producing essential goods like breads, biscuits , medicine but the restriction on movement of workers, who come from outside and non access to passes hit the manpower and the production as well at these 5% functional units.
Demand of salaries without work by workers at homes is also adding to the woes of factory owners, he said.
Divisional commissioner Jayant Narlikar said, “We are waiting for new guidelines after extension of lockdown and if it has scope we will ensure functioning of essential goods factories by allowing workers to stay at the factories. As far as payment of salary is concerned I have issued a press release stating that wages of months of March should not be stopped.”
