Why is migrant exodus giving Punjab industry the jitters?

According to rough industry estimates, 80 per cent of Punjab's industry is dependent on migrant workforce. This trend of employing workers, mainly from UP and Bihar, started in way back 70s

With four lakh migrants leaving the state till May 27 and over 12 lakh still registered to go, the industry in Punjab is getting the jitters despite functioning with only 50 per cent of its workforce. RAAKHI JAGGA explains why the migrant exodus is giving industry nightmares.

How many of the total industrial units are functional again in Punjab?

As per the records of Punjab’s Department of Industry, there are over 2.55 lakh units in Punjab and out of them till May 27, around 1.94 lakh (76 per cent) have been opened up again. Over 20.29 lakh workers are employed in these units, out of which 13.07 lakh are back at work, the government data revealed. Ludhiana is the main industrial hub of the state which has 95,202 units out of which 74,271 units are again up and running.

If 76 per cent of the industry is back in action, why are industrialists are in panic?

Federation of Industrial and Export Organisation (FIEO), Punjab, said that industry fears that in days to come workforce that has joined back work might also leave. FIEO president S C Ralhan said: “Government is arranging for their free train and bus travel and even special trains are opening up from June 1, we fear that the ones who are here, may also make up their mind and leave. However, we are hopeful that the ones who have left will be back in another 2-3 months, by the time units will start running with 100 per cent capacity.”

Why is Punjab’s industry dependent on migrant workforce?

According to rough industry estimates, 80 per cent of Punjab’s industry is dependent on migrant workforce. This trend of employing workers, mainly from UP and Bihar, started in way back 70s. Ralhan said,”In 1978, I started my unit with 16 employees out of which 14 were from UP and Bihar. Punjab workers prefer white collar jobs. In addition to this, in 70s Punjab was more focused on farming and hence people were not much interested in working in factories and rather preferred to work in the fields. Over the years, this dependency increased and now Punjab’s industry is totally dependent on migrant workforce. In addition, now even migrants work in Punjab fields as well as farm labourers because Punjabi youth are more interested in going abroad.”

Harmohinder Singh Pahwa, MD of Nova Cycles, added: “They are hardworking, they come here with a single focus to earn money and send it to their homes in UP or Bihar, while in Punjab we do not find such committed workers. Moreover, the issue of drug addiction and workers wanting to go abroad is also an issue with locals.”

Also, migrant workers take less wages than their Punjab counterparts.

Which type of industries hire Punjabi workers?

Sectors such as machine tools, automobile sector, agricultural implements have local workers in majority compared to migrants. In addition to this, if industry is set up on the outskirts in rural areas as well, the villagers from nearby rural areas are employed. Industry prefers to employ women from villages rather than men.”We had introduced many drives to employ local workers, had made announcements through village gurdwaras too, but we hardly got any response. Many women were keen to work, hence they come from villages in staff buses or even autos, few textile units even have hostels for such employees” said Rahul Ahuja, chairman of Punjab CII, who himself employs over 100 women in his auto parts units.

As per Punjab government’s record, out of 2.55 lakh units nearly 92,482 are in rural areas where around 4.61 lakh are back to work. In 13.39 lakh urban units, nearly 8.46 lakh have rejoined work as per industry department’s records.

What type of industries are mainly located in Punjab?

While Ludhiana is known as the bicycle hub and textile hub, Jalandhar is popular for its sports industry. Mandi Gobindgarh is famous as steel town, while Bathinda has a refinery, NFL. Various MNCs are located in Mohali.

What are the challenges ahead for Punjab industry?

The major challenge is to keep the units running with limited workforce. “As of now we are managing with less than 50 per cent of the workers as social distancing norms have to be maintained. However, looking at the exodus, we are worried that the rest who are working may also go because of the ‘free ticket’,” said Rahul Ahuja. Out of 17.7 lakh registrations, total 15.4 lakh are from UP and Bihar which is 88.5 per cent. “The day, a worker’s turn comes to go back via Shramik train, he disappears from the factory,” said Ahuja.

Industrialists say that they are making a list of workers who want to come back and will ask government to help them return.

“If problem persists, we will hunt for workers from within Punjab only, perhaps it may change a trend in Punjab factories,” said Ahuja. The Industry Department, meanwhile, is asking industries to fill form generated by them online so as to arrive at an exact estimate of labour shortage