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MSMEs bear brunt of suspension of bus services

The Micro Small and Medium Enterprises (MSME) units, already hit by COVID-19 crisis and struggling to get back on track have been dealt a further blow with the issue of labour shortage following suspension of intra-district bus services across the state from Wednesday.

MSMEs bear brunt of suspension of bus services
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Spares stockpiling at a MSME unit in Coimbatore

Coimbatore

After the exodus of guest workers, the industrial units were managing minimal operations with the local workforce. Currently, of the 50,000 odd MSMEs, only a pitiful 20 to 30 per cent of units have resumed operations.

The issue of labour shortage cropped up in MSMEs after nearly about a lakh guest workers constituting 30 per cent of workforce from Uttar Pradesh, Bihar, West Bengal and Jharkhand left the industrial town. Another 40 per cent of the workforce from Southern districts of the state too left, further compounding the crisis.

“Once they (guest workers) left, the local workforce stepped in to continue unhindered operations of the MSMEs. On the first day of suspension of the public transport system on Wednesday, nearly 15 per cent of workers who come from longer distances by bus to work have taken leave,” said J James, president of Tamil Nadu Association of Cottage and Micro Enterprises (TACT).

To overcome the issue of labour shortage, the industries have urged the state to take urgent steps to facilitate their return by issuing e-pass and providing transportation facilities. “These skilled guest workers, who left in droves to their hometowns, are now calling us to come back and rejoin work,” added James.

Echoing a similar pitiful plight were the 400 odd tiny and small foundries in Coimbatore. “The foundry owners managed to retain just 30 per cent of guest workers, while about 50 per cent of them left. Only a less number of local people were into the labour intensive foundry work, but they too have abstained from work due to lack of bus services,” said A Siva Shanmugha Kumar, president of Coimbatore, Tiny and Small Foundry Owners Association.

Bigger units, which couldn’t operate due to lack of workforce and other issues, have begun to divert their orders to small and tiny foundry units into casting work helping them in their survival. “But things may get worse if this labour shortage issue isn’t addressed,” he added.

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