March 31st,2020

Topic:- Economic Challenges after Lockdown.

Won’t be able to pay staff after lockdown: Traders
Organised industrial units are paying salaries to their staff during the 21-day national curfew but have expressed inability to continue it further due to the already existing critical economic condition owing to a slowdown in the economy.

Lockdown period was spread across two months and they would incur losses in footing wage bills, paying rent, taxes, property tax, licence fee, property tax and other expenses.

They feel the government had only paid lip service and did not extend any meaningful package for the units.
21-day curfew could spell another recessionary phase for the manufacturing units, already battered by the demonetisation and Goods and Services Tax (GST).

Piara Lal Seth, operating a shawl manufacturing unit and president of the Punjab Pradesh Beopar Mandal, said a majority of the industrial units in the state in general and in the border district, in particular, fell under the MSME sector. He turned down the government’s offer permitting to run only those units which had the capacity to offer boarding and lodging facilities.
He said it was not practically feasible as only a partial number of employees would join the units and the remaining would not attend. Those attending would seek more wages in comparison to others.
Kamal Dalmia, chairman of the Focal Point Industries’ Association, said traders were extending help to workers without any government aid. He said no relaxation in paying power tariffs was given and the government did not include them in any kind of package.

(Source:- The Tribune)