Aftermath of lockdown: companies now set to face labour problem
Published On: Tuesday, May 5, 2020 | By: Team KnowMyStock
Entrepreneurs and exporters are struggling to crank up operations just when the government has relaxed stern restrictions because labourers have imposed a virtual lockdown by returning home in droves. Apart from labourers anxious to return home after over a month of rough, jobless existence, businesses are also being squeezed by problems of logistics and transportation and financial hardships owing to the lockdown. Industry leaders said April-June quarter would be a washout even for the high and mighty but would be catastrophic for SMEs.
Secretary general of the Federation of Indian Micro and Small & Medium Enterprises, said workers won’t return soon because of welfare schemes. “They will not want to come back to cities anytime soon, unless they were making a lot of money,” he said, adding that small businesses would resume with 20-25% activity.
President of the Chamber of Indian MSMEs, said small businesses were still facing issues pertaining to social distancing, sanitisation and difficulty in finding labour. “For the labour still present in the cities, lack of public transport is a deterrent for movement to factories. Many businesses are reluctant to start because of fear of inspection by district authorities and subsequent sealing of facilities if things are not found in order,” he said.
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