Mohali industrial production down to 10% even after relaxations
MOHALI:TWO weeks after Covid-19 restrictions were relaxed and industries allowed to start work to revive the district’s economy, production is down to 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.
“We’ve managed 10% production in the last two weeks. Earlier we used to supply tractor parts for ₹80 lakh per month, but in the past two weeks we’ve managed sales worth ₹6 lakh and not been able to meet monthly expenses of salaries, power bill and transportation,” says Mukesh Bassi, managing director, India Harness, a tractor parts company.
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.”
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.