Employers’ Federation of South India seeks reliefs from TN government

G Balachandar Chennai | Updated on April 12, 2020

Even as the Tamil Nadu Government is contemplating an extension of lockdown beyond April 14, the Employers’ Federation of South India, has sought some relief measures including the commencement of operation of the industries in the interest of all stakeholders.

“While we appreciate that the measures taken by the Government for the larger interest of the public, we would also like to place for the due consideration of the Government, the impact due to stoppage of work in progress, carrying huge inventory, cost of raw materials and finished products, suspension of storage and distribution, loss of revenue generation, etc, would pose severe challenges in working capital management besides taking care of the employee’s interest in this hour of crisis,” R Srikanth, President of the Federation, said in his letter to the Tamil Nadu Government.

Businesses will not be able to carry on with their operations until normalcy is restored.

The business may be able to absorb the manpower requirement over a period of time, say six months, depending upon the business revival plan for each industry duly supported by the government by extending economic relief package.

In order to tide over the situation, it is absolutely essential to provide immediate relief measures in the interest of all stakeholders, he said.

Renewal of licences

The Federation has sought an extension of time limit for renewal of licences, submission of returns under various labour enactments, inspection-related approvals such as boiler certificate, weights and measurements, pressure valve testing, etc, up to June 30.

It has also sought wage cut for people drawing more than ₹24,000 per month, deferment of professional tax, license fees, fine and penal interest, etc.

The Federation has requested the Government to further extend the payment of power charges to May 31 from April 15 as companies need to generate revenue to pay the charges.

Working overtime

It has requested for blanket permission for working on Sundays/for working overtime, post the lockdown period, till December 31, 2020, for all the industrial establishments including shops and commercial establishments.

The Federation has pointed out that even prior to the lockdown, there was a severe slump in business resulting in industries of some sectors suffering heavy losses and paying employees full wages even though the factories were not operated for many days.

As the Covid-19 compounded industry’s problems, EFSI has sought various relief measures to tide over the situation.

The Federation represents 750 employers of Southern India and additionally 20 other affiliated associations belonging to textile, sugar, cement, plantation, leather and MSME sectors.

Published on April 12, 2020

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