Exactly a month ago, The Clothing Manufacturers Association of India (CMAI) anticipated that non-payment of wages could lead to significant unrest. CMAI members were worried that owners may not be able to visit their factories, if wages were not paid. This anticipation is now coming true, and unrest has stated to unfold across India.
On Monday (18 May), the same happened in Noida when hundreds of workers agitated outside a factory, following which police force and officials of labour department rushed there to control the situation. Faridabad’s Shivalik Prints Ltd. also made it to the headlines for worker agitation. Gurugram’s Orient Craft is another such company that witnessed a similar protest by its workers.
Also Read: Angry Orient Craft workers protest over delay in payment of March overtime
Working with many prestigious global brands and retailers, Orient Craft and Shivalik Prints are the well-known companies of Delhi-NCR. Let us underline here that this issue of worker protest is not limited only to the factories of Delhi-NCR, as these protests are being reported nationwide in recent days.
Just a few days back, more than 250 migrant workers took out a protest march in Ghabdan village, located in Sangrur Tehsil of Sangrur district in Punjab. They raised slogans against the management of Indian Acrylics Ltd., the largest and most efficient acrylic fibre manufacturer of India.
There is no dearth of such reports, as the mainstream media and Clean Clothes Campaign (CCC) – apparel industry’s largest alliance of labour unions and non-governmental organisations – have been persistently raising this issue. The CCC has also shared that as per the reports of The New Trade Union Initiatives, the workers of Arvind Ltd. in Karnataka have only been paid 50 per cent of their wages for April.
The Clean Clothes Campaign is the garment industry’s largest alliance of labour unions and non-governmental organisations.
So far, as per the information from various confirmed and unconfirmed sources, most factories have not paid wages to their workers for the month of April. Also, they will not pay even for the non-operational days of the lockdown period.
Many factory owners accepted off the record that despite any rules and regulations of advisories and State or Central Government, they won’t be able to pay the wages to their workers for the lack of funds, and therefore, they will follow the no work-no wage system. On the other hand, few factory owners, who are associated with various trade bodies, downright refused to comment in this regard.
In another turn of events, HR professionals of some factories informed that the Supreme Court has overturned an order by the Ministry of Home Affairs that asked industries to pay full wages to their employees for the lockdown period. The Court has ordered the Government not to take any coercive action against private companies unable to pay full salaries to their workers. Keeping this in mind, companies are refusing to pay the workers.
We must also highlight here that while many senior level officials in various factories voluntarily decided to not take any salary for the lockdown period, few leading companies (including buying houses) of India have cut salaries of their workers up to 70 per cent. Some companies announced it to their staff that despite the amount of work they are carrying out from home, they will only get half salaries for the months of April, May and June. In case employees decide to oppose this decision, they will be left with no option other than resigning.
Also Read: Indian apparel industry’s blueprint for April wages: 3 different strategies
Irrespective of the aforementioned situation prevalent almost everywhere, we must bring to your notice that there are still some factories that have paid full wages (in two parts) to their workers. Stay tuned to Apparel Resources, as the website will soon confirm the names of these companies.
Also Read: Good News! Shahi Exports pays full salary
In South India, some factories with hostel facilities have supported their workers with basic amenities and food to compensate for the lesser wages for the month of April.
Thousands of apparel manufacturing units have already resumed operations with around 30 to 40 per cent capacity. These workers – despite understating their owners’ problems including the closure of factories in April, lesser orders available, inventory lying in the factory premises and their former fellow workers who are jobless now – are so helpless owing to their weak financial conditions that they are forced to raise voices seeking their April wages. This, in spite of knowing that they will not get anything despite all the endeavours!
To avoid any unrest, conflict and to ensure availability of labour in future, many factories are taking various steps like giving advance payment to their workers, providing them free ration, going through counselling about the company’s financial condition, etc. Few factories have paid some portion of April’s wages to their workers. On the other hand, there are factories that have not paid any amount to their workers and staff for April, but they have paid wages and salaries for the first 15 days of May.
One such factory owner shared on the condition of anonymity, “We wish to pay to our every employee and worker for April, but we don’t have any reserve or funds. However, now that we have resumed work, we paid them for the first 15 days of May, ensuring they have some cash with them for their daily routine expenditures.”
No doubt, it is the most difficult time for companies as well as workers and staff, leading to all sorts of developments – both positive and negative. An apt example for this could be – while the famous Indian brand Blackberrys axed 120 employees, the leading home furnishing giant Trident Ltd. gave massive wage hikes to its 12,000 operators. All said and done, one can’t deny the power of solidarity that always reaps better results in the long run. So, both employers and employees must support each other in tough phases and stand strong with one another.
