Cannot pay full salaries to workers: industry body

Citing severe cash crunch, it urges the Centre to set apart 50% of the money

May 12, 2020 07:19 pm | Updated 07:19 pm IST

MADURAI

Tamil Nadu Tiny and Small-Scale Industries Association is not in favour of paying full salary to labourers.

In a press statement, Association president S. Anburajan said, “The Ministry of Human Resource Development (MHRD) has issued an order to pay full salary to all workers. It is not justifiable to pay full salaries to the people who have not worked even for a single day.”

He said, “The Central government should pay at least 50% of the salaries of workers. Then, the employers will pay 25%.”

He said due to severe cash crunch, entrepreneurs could not pay salaries. Many States had come forward to absorb the interest portion of the salary amount borrowed from banks. The State government must follow suit.

Mr. Anburajan said without migrant workers, many industries in Tamil Nadu might not open. He sought an amendment to labour laws. “Unless rules are relaxed it will be impossible to revive industries,” he said.

He deplored non-inclusion of a representative of micro, small and medium industries in the high-level committee constituted to assess economic damage caused due to the lockdown. “We are worried about the three-month time given to members of the committee to assess the damage. Unless it is done in 15 days, it cannot be acted upon,” he said.

He further said TANGEDCO had chosen to bill all MSME entrepreneurs 90% of the demand charge for April irrespective of their consumption during the lockdown. Tamil Nadu Electricity Regulatory Commission, in an order, had clearly said if any industry was closed during the lockdown, only 20% of the demand charge should be collected, he said.

“The Finance Ministry has allowed us to pay GST till June. We don’t have any hope of receiving our money (from sales of goods) by then. We request the government to allow us to accumulate GST payments for four months from March and make payment in nine instalments from July,” he said.

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