The National Commission for Enterprises in the Unorganized Sector reported in its statement that men and women in large numbers have been sacked from their workplace. The sacked make nearly 92% of India’s workforce who are employed in the informal sector, which generates about half the country’s gross domestic product(GDP).
Almost every factory gate has a board saying “Avashyakta hai (wanted)”. Different from a usual situation, it lists the daily requirement of jobbers–tailors ,‘pressmen’ (as those employed for ironing are called), packers and so on. The requirement has stemmed from the 200 small, export-driven garment units running in the complex. Owing to the Mega Cash-Clean up, the boards have been blank for permanent staff. Relying on daily workers is relieving for the factories.
As a matter of fact, about 79% of casual workers live below the official poverty line. Casual workers possess no job security or reap any benefits of labour regulations.
After Agriculture, the textile and apparel industry is the second-biggest employer in India, with over 7 million workers. Sadly, about 80% of these workers are temporary.
The workforce in unorganized sector are paid the wholesome amount in cash, currently in severe short supply. However, Reserve Bank of India governor Urjit Patel saying on December 7, 2016, that there was no shortage of currency nationwide.
Owners of the small-scale units say they have no other option but to resort to downsize because the seasonal and unpredictable nature of the business and its economies do not allow for permanent staffing and formalized(through bank/via cheque) modes of payment to labour.
If employers add the cost of permanent staffing to their costs, there will be an invariable hike in the prices for their products which will consequentially lose the competitive edge in the world market.
According to the common verdict, jobbers prefer the flexibility the arrangement offers, the freedom to look for the best-paying employer in the market and the scope for overtime at any given point of time.
Rich are still struggling to station their money at secure places. With stacks of black money kept at homes or discreet boxes, there is a sense of unpreparedness and insecurity which grips the richer sections of the society, along with the Aam Aadmi.
Demonetisation has sure hit the rich. The poor has not been spared too. Those in lower income groups are battling out a harsh reality due to cash dearth in the economy. Salaries and wages have always been paid in cash. Payment of meager amounts through cheque to a massive number of workers may pose a cumbersome responsibility on the employers. Hence the small-level employers are refraining from hiring permanent staff.
