Labour crunch puts Gurgaon industries in a tight spot

Twenty days after the District Magistrate authorized industrial establishments in Gurgaon to resume operations at full capacity, several manufacturing units and industries are grappling with challenges on the ground. They face obstacles such as a shortage of labor, diminished demand, and a reluctance among middle management to return to work due to concerns about contracting infections.

Various industrial associations in Gurgaon have highlighted the major issue of labor shortage, stemming from the mass migration of workers to their hometowns during the lockdown. According to Ashok Kohli, President of the Chamber of Industries of Udyog Vihar, only 30 to 35 percent of the workforce is currently available. This scarcity is particularly impacting garment manufacturing units with export orders.

Animesh Saxena, CEO of Neetee Apparel LLP and President of the Udyog Vihar Industrial Association, shared that his own manufacturing unit is operating with around 35 percent of the workforce. The garment export sector, facing labor shortages, anticipates challenges beyond mid-July when new orders are expected to decline. This lack of demand is beginning to affect other sectors, including automobiles.

Deepak Maini, Chairman of the Industrial Development Association, noted that while many industries have resumed operations, they are grappling with both demand and labor issues. Some units are operating with reduced staff, and working hours or days have been shortened. Maini, who runs a manufacturing unit producing automotive parts for Maruti Suzuki and Honda, expects improvement after June 10 or 12, as companies plan to resume orders.

Gurgaon Deputy Commissioner Amit Khatri acknowledged the labor shortage, revealing that, based on Labor Department records, most of the 1,900 registered industrial units in Gurgaon are currently operating with only 40 to 50 percent of their workers. Despite the challenges, approximately 1,10,000 workers have returned to their duties in the district.