MSMEs across Tamil Nadu, set to resume operations today, have expressed concerns about manpower shortage and lack of orders from clients.
On Sunday, the State government gave the green signal for 17 industrial estates to start functioning with 25% staff. It further said that employees residing in containment zones were not allowed to come to work, and those aged above 55 should avoid reporting for duty.
R. Selvam, secretary of Thirumudivakkam Industrial Estate Manufacturers’ Association, said that over 1,500 migrant workers, mainly from Bihar, West Bengal, Jharkhand, Odisha and Maharashtra, had left for their home towns. “Staff and skilled workers from down south didn't return to work due to the transportation issue and the fear of contracting COVID-19,” he said.
‘Many have left’
The same was the case in other industrial estates in and around Chennai. When asked about the immediate challenge they were facing, Bakul M. Patel, president, SIDCO Industrial Estate Villivakkam Manufacturers’ Association, said many migrant workers had already left the city. “The rest have requested permission to go home as and when they get trains and buses. We are wondering how to pay salaries this month. We have tougher days ahead,” he said.
The MSMEs said that their order books were empty, and even if they open their units, they would have to wait for their clients to come back to them. “When we start operations, we won't have enough hands to help us with production, as 50% of our workers have left. We are not certain about the demand. Orders have declined from auto OEMs, and we don’t know what they have decided to do. And, the stimulus package has not been helpful,” said A.N. Sujeesh, president, Ambattur Industrial Estate Manufacturers’ Association.
“There are no new orders coming in, and even if we get some, we are short of workers,” said, K.V. Kanakambaram, president, The Industrial Estate Manufacturers’ Association, Guindy.
With zero billing during the months of April and May, the MSMEs have indicated that it would be difficult to pay salaries for May and June. They said the Finance Minister's announcements, made 10 days ago, will not be of any immediate help. “Whenever we go to the banks, we are told that they have not received the orders/circulars for provision of funds,” Mr. Kanakambaram said.
According to the MSMEs, instead of a moratorium, the government should consider reducing the bank interest rate (repo rate +2% instead of repo+5%).
To address the shortage in the workforce, the MSMEs have suggested that job fairs could be arranged in industrial estates so that local residents could get job opportunities.
