Businesses will not be able to carry on with the pre-shutdown activities till they regain normal business activities, which are bound to take time longer that we think.
The Employers Federation of Southern India (EFSI), representing 750 employers of southern India and additionally 20 other affiliated associations belonging to textile, sugar, cement, plantation, leather and MSME sectors, has sought relief measures, including extension of time limit for renewal of licences, permission to operate 12-hour shifts for a period of six months and exemption to work compensatory days for the lockdown days.
The Federation said the impact due to stoppage of work in progress, carrying huge inventory, cost of raw materials and finished products, suspension of storage and distribution and loss of revenue generation would pose severe challenges in working capital management, besides taking care of the employee’s interest in this hour of crisis.
In fact, even prior to the lockdown, there has been a severe slump in business, resulting in industries of some sectors suffering heavy losses and paying employees full wages even though factories had not been operated for many days, said R Srikanth, president of the federation, in a press release.
Businesses will not be able to carry on with the pre-shutdown activities till they regain normal business activities, which are bound to take time longer that we think. Business may be able to absorb the manpower requirement over a period of time, say six months, depending on the business revival plan for each industry duly supported by the government by extending economic relief package, the release said.
In order to tide over the situation, it is absolutely essential to provide immediate relief measures to commence operations of the industries in a smooth manner and maintain balance of interest of all stakeholders to ensure normal operations over a period of time, it added.