Coronavirus pandemic | Worker shortage leads to 25-30% salary spike for daily wagers

Even as the coronavirus lockdown has led to a spike in demand of fast-moving consumer goods (FMCG) and packaged foodstuff, companies are facing an acute shortage of truck drivers and labourers, The Economic Times reported.

Wages of labourers, truckers and delivery staff—needed to load, transport and distribute these goods - have also jumped by 25-30 percent in the last 15 days, the report said.

The compensation for the contractual labour has magnified even more, Mayank Shah, Category Head at Parle Products, told the paper.

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The daily movement of trucks has slumped to less than 10 percent of usual as per the All India Motor Transport Congress – which represents 1 crore truckers, Bloomberg reported. Additionally, more than 70 percent of these drivers have moved back to their homes, far from their job locations, it said.

“Though the government has allowed movement of both essential and non-essential goods, the situation is very different at the ground level,” Naveen Kumar Gupta, secretary general of AIMTC - the largest grouping of transporters in India, told Bloomberg.

The impact of labour shortage and the nationwide lockdown is so acute that ITC, Parle, Dabur and Coca-Cola are functioning at only 10-15 percent production capacity.

“We suggest the Centre appeal to transport associations to help in charges and availability. Ground realities are different than what the Centre is notifying. Many local authorities are not allowing interstate movement of trucks,” Vikram Agarwal, Managing Director at Cornitos, told the paper.

FMCG giants like Marico, Britannia and ITC have now also tied up with e-commerce delivery firms such as Dominos, Zomato and Swiggy to enable last-mile delivery of essential items.

Truckers on the frontline

Meanwhile, the government is considering an insurance scheme for eight lakh truck drivers and assistants to reassure them of their safety amid the pandemic. The transport ministry is likely to announce this soon, as per another ET report.

The special insurance scheme, being set up by the Centre’s empowered groups and the Life Insurance Corporation of India (LIC). It will be for three-months (extendable if the lockdown extends) and will provide COVID-19, accident and death cover, it said.

As many as four lakh trucks ply daily with essential goods and the plan will cover the trucks' drivers and assistants, it added.