Uncertainty looms over jobs amid lockdown

Vijay C Roy

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Tribune News Service

Chandigarh, March 25

With the government announcing lockdown for three weeks, uncertainty is looming across all sectors in the region. While daily wagers and contractual employees, especially those in the manufacturing space, are already losing their wages due to the lockdown, several companies, especially in the organised retail, travel and hospitality sectors, are said to be planning pay cuts and layoffs.

“According to estimates, around 4-5 lakh industrial workers, including daily wagers and temporary, have been rendered jobless in Punjab only due to the lockdown. Employers from the stressed units are also negotiating with regular employees so that they can accept 50% salary for March,” said Badish Jindal, president, Federation of Punjab Small Industries Association.

However, industrialists said the manufacturing sector was not planning any layoffs at the moment as there were orders in hand and once the situation normalises, the industry would need a sizeable number of workers.

However, many in the manufacturing sector said most organisations were considering postponement of increments.

“Most companies are currently following a wait-and-watch policy. If the situation doesn’t normalise, then it will be worrisome and many companies may resort to layoffs,” said a Jalandhar-based industrialist.

The industrialists apprehend if the situation doesn’t improve, the worst hit would be the low and middle-income groups, as most organisations have already started drawing up a list of employees who they can afford to let go off.

Though most of the companies are tight-lipped about their strategy, insiders said retail, travel and tourism sectors were the worst hit with some of them having already laid off certain employees.

Low-cost carrier GoAir has been in the news for letting go off a number of its expat pilots. Laying off expats from the workforce is a strategy that most companies across the sectors are adopting.

Hotel and restaurant owners may also be forced to go for steep salary cuts at the top and senior management levels amid lockdown.

“In Ludhiana and Jalandhar, many hotels and restaurants have already closed down their operations. Since a majority of the staff are on contract, many of them have been asked to leave,” said Jindal.

Any disruption in operations is likely to substantially impact the full-year operating performance of the hospitality sector. The hotel industry body, in a letter to Prime Minister Narendra Modi last week, had sought help on several issues, including possible bankruptcies and mass unemployment. They had also asked for relaxation in certain norms pertaining to the sector’s business.

In the IT and other related sectors, the joining date of new recruits has already been postponed. “The joining dates of freshers who are holding offer letters have been pushed by a few months till the situation becomes normal,” said an HR executive employed with an IT firm.

Experts said the startups are likely to see more layoffs if the virus outbreak continues to wreak havoc.