BHUBANESWAR: Micro, Small and Medium Enterprises (MSMEs) of the State which produce essential goods are in the midst of a temporary shutdown as their employees and labourers are not reporting to work due to coronavirus scare. Since the last two weeks, the Odisha Assembly of Small and Medium Enterprises (OASME) said, many MSMEs have stopped operation despite assurances of support for smooth production for uninterrupted supply of services.
“The State Government ordered public and private establishments not to terminate employees and reduce their wages. The Government also asked establishments not to deduct wages if workers do not attend work,” said secretary general of OASME Satwik Swain. While the virus scare is huge, most workers are aware of the Government’s direction and prefer to stay at home instead of reporting to work. Besides, the lockdown enforcement also prevents their movement. As a result, operations of several MSME units have come to a standstill with no manpower at work, he added.
Om Oil and Flour Mills Limited, which manufactures Ruchi brand of spices, ready-to-cook and ready-to-eat food items as well as beverages, has stopped its production for the last two weeks due to absence of labourers. “All our production units are at Khapuria Industrial Estate in Cuttack and we had taken permission from the district administration to operate the units. However, we are unable to manufacture as the employees and workers are not reporting to work,” said Director of Om Oil and Flour Mills Rashmi Sahoo. The factory has 1,300 to 1,500 employees and advance payment for March was made, while the rest payment was made in April. “However, we are apprehensive about payments to the employees next month as manufacturing has come to a halt,” she added.
The apparel industries of the State have also taken a hit during the lockdown. Anwesha Apparels, which manufactures school and college uniforms, aprons for hospitals and masks, has stopped its production. “We delivered 11,000 masks to Nalco but are yet to supply the aprons to hospitals as our workers are not reporting to work,” said Sweta Pany who heads Anwesha Apparels. Pany informed that each worker was initially paid `2 to stitch one mask.
The remuneration was raised to Rs 3 and subsequently to Rs 4 per each mask but now they are demanding `5 which she says will lead to a surge in prices. “Besides, the workers are not reporting to work even if we pay them at the rate of `5 per mask,” she added. With no manufacturing, it is getting increasingly difficult for the firm to pay rent, electricity bill, wages of labourers and service loans. Meanwhile, OASME has demanded waiver of loan interest for three months and free movement of workers.