Labor went home, production falls by 40 percent

person access_time4 05 June 2017

The absence of workers in wood panel laminate and furniture industries has again proved to be a big reason for fall in production nationwide. According to reports from different regions, the net production in Plywood industry alone has come down by 40 percent due to manpower shortage. The Industries located in Gandhidham, Chennai, Kerala, Mangalore, Yamunanagar and Punjab region have to face bigger absence compared to factories based in Utter Pradesh, Bihar, and North East. Plywood manufacturing units have been flooded with orders after budget but labor shortage is proving to be a big hurdle. The flow of wood panel orders was good during March and April after a pause caused by Demo effect and has brought breathing for the industry but majority of manufacturers are missing the supply deadline because of labour crisis. Reports hint that most of the units are compelled to run in one shift.

A contractor from Yamunanagar said, “It is every year phenomenon because labourers have gone to their native place for crop harvesting, festivals and marriage season. We are able to feed sufficient manpower after June second week onwards”. Another contractor from Gandhidham said that labors are getting work in their native states because of many plywood and timber related manufacturing establishments have sprung up in organized way and running well in UP, Bihar and even in North East states.

Despite the fact that, to minimize their labour force plywood industries are adopting automation in their plants by putting modern machines, equipment’s with better layout etc, but the manufacturing in plywood sector still need a huge manpower. It is also true thatwith a decent growth in wages of manpower working in plywood and timber industry, the return of new workers has been evident during last two years. There are many units who are providing better facilities for lodging, fooding, medicines, etc. Contractors from North based units say that “Every unskilled labour is getting a minimum of Rs. 10000-12000 per month where as skilled workers are earning 15 to 25 thousands”.

It is true that Plywood and other panel industries are now paying decent wages to people and that is why it is seen that now plywood and laminates sector attract more people with higher wages, facilities and organized approach of manufacturers hence the impact of workers shortage is expected to reduce in years to come. Experts foresee the better time after GST for these manpower driven sector, because industry may provide more sops in future in form of PF and ESI, which will ease the challenges of manpower availability in future.

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