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Labour crisis could hobble India

They work as courier boys, rickshaw pullers, dhobis, loaders, cooks, waiters in restaurants and in beauty parlors.

Labour crisis could hobble India

Migrant workers and their family members walk with their belongings on a highway towards Uttar Pradesh as they leave for their villages during a government-imposed nationwide lockdown as a preventive measure against the COVID-19 coronavirus, in Faridabad on March 27, 2020. (Photo by Money SHARMA / AFP)

The Modi government is now focusing on the sliding economy as it rightly should and this week’s announcement by the Finance Minister of the details of a Rs 20 lakh- crore relief package is a welcome step indeed. However, whether these measures will boost the economy wi thout the migrant labour returning to work is open to question.

The reverse migration forced by the 50-day lockdown is playing out all across India. Rail loads of thousands of migrant workers are still in the process of going back to their homes. Is it possible for them to forget their trauma of these past few weeks of lockdown misery?

There are indeed many heart-wrenching stories of their long walks to their homes along with their children and family. The Hindustan Times reported SWAN’s study released on May 2, which said around 72 per cent of those returning home had almost run out of ration, usually provided by the local state government, and cash.

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There is a risk that this exodus of labour and their reluctance to return might create a labour shortage. In that case, the government knows this will delay the kick-start of the economy. Some experts predi c t tha t inc ent i v e s ne ed to be of fered to lure migrant labour to return. Why is the migrant labour reluctant to come back?

The basic reason is that they fear lack of security after they were left high and dry by governments and pr ivate employers. Finance Minister Nirmala Sitharaman’s huge relief package is aimed to benefit migrant labour, who must be weighing the pros and cons of returning to work. The mini s ter has announced several measures including food and shelter schemes, easy credit etc. in the Rs 3.5 lakh crore package which includes free food grains for 8 mill ion migrant labourer s.

Many of these measures qre significant like the ‘one nation, one ration card,’ universal minimum wage, and conc e s s iona l and a f fordabl e rent a l housing for migrant labour. What is missing is the hard cash for their immediate daily needs.

Fortunately, as Sitharaman had noted, most states have completed harvesting and the government has e v en procured the food g ra ins putting an end to doubts whether the Rabi crop would be harvested at all. So at least there is foodgrain security.

Overall, one can’t find fault with the labour for not wanting to come back as they cannot easi ly forget their lockdown trauma with no food, no shelter and no salaries. Secondly, the villages are not so a f f e c t ed by the v i rus , a s Union He a l th mini s t e r Ha r sh Va rdhan claims.

The majority of the Covid-19 cases have been reported from three states – Gujarat, Maharashtra and Tamil Nadu. Thirdly, the villagers keep strict vigil on the returning migrant labour and keep them isolated to stop getting infected. The social security in vi l lages and the suppor t systems seem much better. Generally, the migrant labour work in MSME sector, construction and transportation.

A sizeable number of worker s are al so found in farming, household labour etc. It is they who construct the malls and multiplexes. They work as courier boys, rickshaw pullers, dhobis, loaders, cooks, waiters in restaurants and in beauty parlors.

Their migration has been on the increase in the past few years because of urbanization. But now there is a fear of reverse migration to the rural areas in the post-Covid situation. Exper ts warn that absence of mi g rant l abour would ha v e f a r – reaching impacts on the economy and the government should be prepa red to de a l wi th the cons e – quences.

The Centre, states and private employers must devise a contingency plan to meet the situation. Companies are al ready repor t ing labour shortage. One economic daily has reported that business houses are preparing business continuity blueprints to lure migrant labour. More automation might be on the cards but that is for long term planning.

A humane approach towards the work force would go a long way. Around 400 mil lion informalsector workers in India are at risk of falling deeper into poverty during the crisis caused by the coronavirus outbreak, the UN’s labour agency has warned. Nitin Gadkari, minister of roads and smal l and medium scale enterprises, said in an interview that the government is aware of the need to address labour shortages to restart the economy.

As former Reserve Bank Governor Ra ghuram Ra j an not ed, the s t a t e s and Cent re should come together to figure out a combination of prov i s ions to keep the needy households surviving through the next few months.

The need of the hour i s to f rame comprehens ive unemployment benef i ts and also amend the labour laws in favour of the l abour. Whi l e norma l l y the migrant labour wai ts out a cr isis before going back, this time it may take longer, even one year.

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