MSMEs to go on strike on July 13 and 14: HOSTIA

HOSTIA members announcing two-day strike by MSMEs  in Hosur on Thursday.

HOSTIA members announcing two-day strike by MSMEs in Hosur on Thursday. | Photo Credit: N. BASHKARAN

Hosur Small and Tiny Industries Association (HOSTIA) has announced a two-day shutdown of MSMEs here to draw the attention of corporate customers to implement new costing norms.

HOSTIA with a membership of over 2000 MSMEs will go on a total strike on July 13 and 14 “to draw attention of companies” to implement new costing norms worked out by the MSMEs. 

HOSTIA, had in March, released a new costing for products. However, according to HOSTIA, MSMEs were denied fair price and profit for their products and job orders for over the last 15 years. While the price paid by the companies remained the same, the costs of land and building, machinery, labour, electricity, consumables and overheads have inflated manifold.  

In addition, MSMEs were under the strain of higher GST and compliances burden along with the losses incurred during the COVID lockdowns. 

According to K. Velmurugan, president, HOSTIA, MSMEs are under strain unable to pay salaries to workers on time, defaulting on bank loans and GST payment delays. “The situation was largely caused by the unfair pricing policy of corporate customers/buyers in and around Hosur,” says Mr.Velmurugan.

MSMEs provide employment to educated, undereducated and uneducated rural youth, and women, who are generally out of the employment network of large companies.  Hence, the survival of MSMEs was vital for the health of the country, says Mr.Velmurugan. 

Faced with closure of many units, HOSTIA arrived at a new pricing policy and costing norms for sheet metal pressing and welding, plastic components, conventional machining, rubber components, CNC among others based on the assessment of input costs.

However, the corporate customers have not responded favourably to the new costing norms, says Mr. Velmurugan.  “Given the severity and the urgency of the situation, HOSTIA after appealing to the district administration, District Industries Centre and the MSME department, has now decided to go on a strike for two days, followed by a demonstration.”

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Aug 13, 2022 2:02:34 pm |