Now consumer goods companies face labour exodus amid infection and lockdown worries
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Synopsis
The labour shortage is said to be mostly at component suppliers, third-party manufacturers, and outsourced packaging and supply chains, forcing some to create a pool of temporary workers who can step up in case of disruption.
PTI
Reverse migration started at restaurants and the retail sector in cities such as Mumbai and Delhi earlier this week, but has spread to other consumer-facing companies as well.
After the retail and restaurant sectors, manufacturers of consumer goods are faced with an exodus of contractual labour migrating back to their homes, worried about Covid infections and possible lockdowns forcing them to run out of income.
Now consumer goods companies face labour exodus amid infection and lockdown worries indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.
Hiring demand in IT- Hardware and Software sectors in Hyderabad, Bengaluru, and Chennai are on the rise with the growth of 15%, 14%, and 11% respectively.
Synopsis
On March 2, the Haryana govt approved a law reserving 75% of private sector jobs with monthly pay of up to Rs 50,000 for local residents, stating that the rule will be applicable for 10 years and will address rising unemployment in the state.
Queries sent to Amazon, Flipkart, Zomato, BigBasket, Myntra and other large firms seeking comment elicited no response.
Companies and staffing firms have sought clarity on the Haryana government’s reservation bill, on whether the 75% reservation for private sector jobs is applicable to existing jobs or new ones, how the law will be enforced for manpower on contract and for the work-from-home population which has seen steep acceleration after the Covid-induced lockdowns last year.
Rituparna Chakraborty, Co-founder of Team Lease minces no words when she describes the law as economic suicide . She points out that it won t take time for companies, especially in the tech space to just move out of Gurugram rather than adhere to the law. It has proven the adage that good politics leads to bad economics. It will cost the state much-needed jobs, she points out.
Haryana is not the only state that has latched on to the idea of reserving jobs in the private sector by passing laws. Several others including Maharashtra and Madhya Pradesh have some form of a similar law being readied at various stages. As unemployment numbers remain daunting, promising jobs during elections is a populist way of staying in power. This is not going to help people actually find jobs, says Mahesh Vyas of CMIE, a research firm that puts out regular employment data. CMIE s latest data shows an unemployment rate of over 26% in Haryana, one of the highest among states. Vyas believes the move