The likelihood of an extension of the lockdown to check the spread of COVID-19 till the month-end has left the working class deeply worried. The extension of the lockdown, which began on March 25, would mean an entire month of no work, which in turn has left a question mark on salaries for April.
Relaxations expected to be announced by the Prime Minister Narendra Modi on Tuesday, such as resuming work on factory floors with a limited workforce, may not be of much help, unless other allied sectors - imports, transport, delivery and exports - are also relaxed, industry bodies argue.
The Labour Department of Karnataka has issued an order mandating all establishments to pay salaries for March, which most of them have complied with. However, the department has remained silent on the salary for April. “We will discuss with all stakeholders and take a call,” said P. Manivannan, Secretary, Labour Department, GoK.
With the government yet to take a decisive call, most of the Micro, Small and Medium Enterprises (MSMEs) have orally communicated to their employees that they were unlikely to get their April salary. Srinivas Asranna, president, Peenya Industries Association (PIA), which has over nine lakh workers, said the industries were severely pressed for resources and were unable to pay salaries for April.
This has created panic among workers. “To go a month without salaries would be very stressful as we have to pay rent and other bills despite not having a salary. There are also medical costs of the elderly at home, which we have to bear. This will only push us into more debt. Workers further down the chain doing menial labour may even stare at food running out,” said Shashikanth R., a factory worker at Rajajinagar Industrial Estate in the city.
A rough estimate by the Federation of Karnataka Chamber of Commerce and Industries (FKCCI) pegs the number of workers in the State's industries at a minimum of 65 lakh.
The industry bodies seem to be contemplating pay cuts to tide over the crisis. “We propose pay cuts. FKCCI has proposed a formula for industries to pay salaries - pay full salaries to those up to salaries of ₹15,000, 50% of salaries for those with a salary in the range of ₹15,000-₹50,000 and no salary for those with a salary above ₹50,000,” C.R. Janardhana, president, FKCCI.
However, not all industries seem to agree with this formula. “The government is responsible for the lockdown and they should give us a helping hand to cover salaries. As this is a public health crisis, Employees State Insurance Corporation (ESIC) must bear the salaries of those covered under their schemes - with salaries less than ₹15,000. Others we will pay in the range of 40%-50% of their salaries,” said Mr. Asranna.
However, the unions are not ready to accept pay cuts. “We understand the financial stress MSMEs are in. If the lockdown continues for a longer time, many may even be forced to shut shop. But the workers cannot be penalised. Presently, there is a supply shock in the market, but if the workers are not paid wages it will soon turn into a demand shock sending the economy into a further downward spiral. Let the industries seek help from the government, which we will also support. Either from the employers or the government, the workers need to be paid full wages,” said Satyanand Mukund, Secretary, All India Trade Union Congress, Bengaluru.