Order on wages of State, Centre baffles Ranipet units

While Collector S Divyadarshini stated that strict action would be taken on industrial units not paying their workers for the lockdown period, the Parliament committee for labour chairman Bhartruhari Mahtab stated that industries could not be forced to pay workers during natural calamities adding that COVID-19 lockdown could also be considered a natural calamity. He had even stated that such payments were “unjustifiable.”

Unit holders, who spoke to DT Next were aggrieved that the wage payment order had obviously been issued without proper knowledge of ground realities.

According to R Amirthakatesan, president Ranipet District Small and Tiny Industries Association, “How are we expected to pay workers when all units have been closed for more than a month based on government orders? The lockdown was announced on March 23 and will continue till May 3 for which period we have asked TANGEDCO’s chief financial officer to instruct SE VEDC (Vellore Electricity Distribution Circle) to consider this as a nil payment period as the closure was on the orders of the government.”

When unit holders themselves are strapped for cash due to pending loans it is unfair to ask MSME units to shell out. Association secretary Gandhijothi added, “When we have requested the RBI and Union Finance Minister Nirmala Sitharaman for a lockdown bailout package, including loans on reduced interest and a decade long moratorium it is well-nigh impossible for us to pay out.”

Referring to shoe upper units which have a huge female workforce, sources revealed that monthly wage bills could be as high as Rs 7 lakh.

“With the industry closed and with Europe badly hit by the virus we expect normalcy only after two years and till then we do not know how to manage,” said an entrepreneur on condition of anonymity.