Peenya Industry Workers Lose their Jobs due to Economic Slowdown

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Published on January 30, 2020 by

 

One lakh fifty thousand contract labourers were laid off by industries in Peenya since April 2019.

“I was a contract worker working in BOSCH company for three years and one day without any notice they fired me, I have been unemployed for six months now,” said Shanmugam mechanical engineer.

 

Peenya is the worst hit because of the economic policies of the central government. Demonetization on one side and GST on the other. The president Peenya industries association Srinivas Asranna said “economic slowdown is a universal fact today, the year 2019-20 it’s very serious. It had badly affected to small and medium scale industries. From April 2019 around 1.5 lakh, people lost their job and the business has come down to 30%”.

 

The centre for monitoring Indian economy shows unemployment rates touched an unprecedented high of 10% last year. Production in Peenya has slowed down and this can be seen in the drop in electricity consumption. Factory owner M. Reddy said “as production has come down the workers are working in one shift. First, the production was 100% now it’s not 30% also.

 

Labour unions have demanded the implementation of universal social security cover for all workers and stop pro-employer labour law amendments. Vijaya Bhaskar general secretary (AITUC) All India Trade Union Congress said: we demand national minimum wage, the minimum guarantee of universal monthly pension, the abolition of contract labour system and demand and equal pay equal work.”

 

Experts say that there is no universal solution to any economic crises “The fact is we are now middle of serious economic crises. This straight away jump to our mind is the disastrous impact of demonetisation where 85% of our currency was straight away demonized a false hope. The government doesn’t seem to understand that there is a problem on the demand side of the economy but the government still believes that there is a supply-side the problem which is why they have reduced cooperate tax to the time of almost 10% in India.” said m. Satyanand professor of sociology and economics.

 

Office-bearers of the Peenya industries association have met union finance minister Nirmala Sitharaman and appealed for help. They look forward to the new budget coming in the first week of February.

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