Fastener makers run units in a bid to hold labour back

Ludhiana: With more than 25,000 people of other states, mostly migrant workers returning to their native places, the city’s fastener industry is striving hard to retain workers. Regardless of problems like having no new orders and problems with sourcing of raw material, businessmen are still operating their units to keep workers engaged.
From providing accommodation to workers inside their factories, to arranging their transportation, industrialists are doing everything they can. Given the recession caused by Covid-19, businessmen want both the state and Centre to announce reforms to save industry.
Narinder Bhamra, president, Fastener Manufacturers’ Association of India (FMAI), said, “The fastener industry of Ludhiana is in dire straits, and as compared to other sectors, we are in a worse situation. Already, for almost a year, we were facing unprecedented recession, and now this lockdown, which does not seem likely to end soon. Regardless of this, we have started our units, despite having no orders in hand, just to keep our workers engaged and pay them wages. For their better upkeep, we are also housing them inside our factories with the best of facilities, and arranging for transportation of others who cannot commute on their own.”
Bhamra said while this strains their already dwindling resources, they did not have any other option, as some of them were thinking of going back home just because their friends and acquaintances were going back. However, he said, the state and central governments are doing nothing, except advising them to look after their workers and pay their salaries.
FMAI vice-president Atul Sethi said, “Be it financial assistance, providing ration, sending money to their home, and ferrying them to factories every day, fastener manufacturers are doing their best to make sure the workforce does not leave Ludhiana. We do not have any orders from our buyers at the moment, and we also know there is no surety for how long we will be able to hold our workers like this, but what else can we do? The Union government should realise the gravity of the situation and offer a relief package.”
He suggested tax cuts and introduction of scrapping policy for commercial vehicles, under which owners of vehicles older than 15 years should be given incentives. Such steps will lead to more demand for automobiles, and this in turn will lead to a huge demand for fasteners, and bring our sector back on track.”
According to FMAI general secretary Kuldeep Singh, there was a lot of panic among factory workers due to the Covid-19 lockdown, but owners were taking all possible steps to keep them safe and sound.
“If we are doing our duty, the central and state governments too should play their role and ensure the fastener industry gets orders to keep our factories running. This is possible only if the GST on purchase of automobiles is reduced from the current slab of 28% to 10% for the time being, and asking the government sector companies to issue orders to the micro, small, and medium enterprises in advance for the next quarter.”
Over 5,000 fastener makers, traders based in city
Ludhiana is one of the biggest hub of fasteners, and the major products being manufactured here include nuts, bolts, studs, washers, screws, and rivets, which are supplied to automotive, hardware, aeronautics, and several other sectors.
According to FMAI, there are more than 5,000 units dealing in direct and on contract manufacturing and supply of fasteners to Indian and overseas companies, and a huge supply of products is made to several big automotive companies, including Maruti, Tata, Mahindra, Ashoka Leyland etc, from Ludhiana.
In addition to the manufacturing units of the organised sector, there are hundreds of tiny units as well, which still operate inside the houses of owners of these units.