Apparel Online India Magazine June 1st Issue 2018 | Page 48

PERSPECTIVE STORY
Exports down as about 3,000 mid-level
professionals lose job!
A
Noida-based apparel exporter
received a request from his
fellow exporter to ‘adjust’ 8 staff
members (mostly merchandisers) in
his company as the fellow exporter
was forced to retrench these staff
members, since business was down.
In another incident, a factory in
Noida faced ‘unrest’ kind of situation
after the management was forced
to lay off some workers, who were
unwilling to go, even though there
was no work in the factory. Heavy
deployment of police force was
provided around the factory to
control the situation (see picture).
Names of these factories and
exporters are being withheld on
their request. This is not a one-off
situations; conditions are similar
or even worst in many factories/
companies across the country.
Many exporters are functioning at
minimum capacity while many others
are doing contract manufacturing to
keep their factories running.
In December 2017, Apparel
Online reported about the lay off
of thousands of workers, and now
the heat is being faced by mid-level
professionals too. In some of the
ESSENTIALS
Whatever the
industry situation
is, placement
sessions of various
fashion and
garment institutes
remained good
as usual this year
too. In the next
issue of Apparel
Online, you will
get a report on
the placement
scenario of some
top institutes.
companies, mid-level professionals
are waiting for salary from last
three months and are in fact forced
to continue work since they are not
getting new opportunities. Most
of the companies have done some
retrenchment in recent months. As
per industry estimate, nearly 3,000
mid-level professionals lost their jobs
in apparel manufacturing industry
in past few months. It is believed
that there are a sizable number of
professionals on the verge of lay off.
Confirming the situation, one of the
hiring professionals of Noida shared
on the condition of anonymity, “Every
day I am getting dozens of calls
from professionals who are looking
for new jobs and they are really
depressed as there are not many
options for them in other industries.
Professionals, especially those who
are accustomed to heavy packages,
are finding the situation very
difficult. There are jobs, but at entry
level or for professionals with 2 to 3
years’ experience.” He further added
that from last few months hiring is
being done only by big companies or
some mid-level companies that are
financially strong.
Police vehicles outside a garment factory in Noida to avoid any unrest as workers were forcefully asked to resign without any prior notice
48 Apparel Online India | JUNE 1-15, 2018 | www.apparelresources.com
Though no official survey has been
done in Delhi-NCR in this regard,
but insiders of the industry say that
this lay off of mid-level professionals
could be very significant. Many
factories today have reduced their
labour strength to half of what they
used to have when the orders were
good or reasonable. In accordance,
mid-level professionals have also
been retrenched. In Ludhiana,
experts shared that nearly 500
professionals have been shown the
exit gate in last few months and
more are expected to be facing
similar consequences in the coming
days as there are no improvement
signs. Harish Dua, MD, KG
Exports shared, “Yes many such
professionals have been forced to
resign and the trend will continue if
we don’t get Government support.”
Some of the industry experts feel
that conditions are worst in the
factories that were working on thin
margins of around 5 to 8 per cent
as they are now not able to survive
due to very less duty drawback
rates, which were their survival
margins. And such companies are
more in Tirupur, according to Raja
Shanmugham, President, Tirupur
Exporters Association (TEA) as the
city is doing more basic garments, so
margins are naturally less than any
other hub. “More than 500 mid-level
professionals have lost their jobs in
Tirupur and these conditions might
continue as this is just the beginning.
Only Ministry of Textiles can save
the industry,” he said vehemently.
Reacting to team Apparel Online’s
query on the topic, HKL Magu,
Chairman, AEPC admitted, “Yes,
there are lay offs as many factories
have less orders and are not using
their full capacities, and which really
is a matter of concern.” He however
concluded on a positive note that
the phase is transitory and with the
passing time, overall world economy
is bound to improve, GST process will
be smoothened out and consequently
market conditions will improve.