Noida: Realtors, garment factory owners say salary transfer to banks is a big challenge

More than 1 lakh workers in Noida employed in the two sectors are paid in cash

noida Updated: Nov 29, 2016 15:09 IST
Dhananjay Jha
Dhananjay Jha
Hindustan Times
Demonetisation,Payday in Noida,Cash crunch
The Noida Entrepreneurs Association held a meeting with labour department officials about opening of bank accounts for their employees.(HT Photo)

Realtors and owners of garment production factories said they are expecting a tough time to pay salaries to their employees through account transfer instead of cash payment.

The Centre directed employers of all organised and unorganised sectors to pay salaries through account transfer and stop cash payments. The direction followed the demonetisation of ₹500 and ₹1,000 notes by the Centre on November 8.

In the three industrial phases of the city, there are nearly 1,250 garment factories that employ around 75,000 workers. Most factories are concentrated in Phase-2 and Phase-3 areas of Noida.

Prtibha Khattar, the owner of Prati Kreations, a garment factory, said, “We agree that the garment sector has the maximum number of workers who are paid salary in cash. We hire workers with the help of established contractors. Though the task is a daunting one, we think that opening accounts will benefit us in the long run. We have informed our employees and their contractors, as well, to get their bank accounts opened.”

Noida Entrepreneurs’ Association (NEA) held a meeting with the deputy labour commissioner, BK Rai, and offered their assistance to get bank accounts opened for their employees.

Vipin Malhan, president of NEA, said, “We have sent a circular to all members, asking them to instruct contractors who provide workers to factories to help in collecting necessary documents such as Aadhaar card, voter ID etc. We hope that all employees will have their bank account within a few weeks.”

Suresh Garg, the general secretary of the confederation of real estate developers association of India (Credai), western UP, said, “The move is a good one, but the real estate sector is likely to face problems. Most workers will face difficulty in submitting documents such as Aadhaar card and address proofs. The real estate sector is totally dependent on middlemen such as contractors, for workers.”

He said that it will take some time for the decision to be implemented. “It is not possible to get bank accounts for all employees, who until now have been drawing their salary in cash, opened at once. We are cautious and have issued clear directions to contractors to get the process done soon, after we received a letter from the district administration two days ago,” Garg said.

According to the DLC, more than 50,000 workers in the construction sector have no bank accounts.

“We are working towards open accounts for the workers as early as possible. We have spoken with contractors and they are cooperating,” Rai said.

First Published: Nov 29, 2016 15:01 IST