Auto Slowdown Causing Job Losses, Temporary Factory Workers Face The Axe

The domestic passenger vehicle industry is witnessing worst performance in the last two decades and the prolonged slowdown is now causing job losses. The auto components industry alone employs 50 lakh people and 10 lakh of those are set to get affected. Contractual labourers have become the first victims of the slowdown.

26 year old Gurmeet Singh who hails from Jalandhar in Punjab was sacked from an auto components factory in Gurugram in February where he had been working for two years and earning Rs 8,000 a month as a contractual labourer. For the last five months he has been running around for jobs but to no avail.

"I went to several companies and gave my resume but didn't get a job anywhere," Gurmeet said.

"It has been five months and I have gone on foot to give my resume at these places. I am in a lot of trouble. I am unable to send money to my family. I also haven't been able to visit them. From small to big ones...I have given my resume to at least 150-200 companies", added Gurmeet.

Gurmeet who has studied till class 10th and has done a course in industrial training claimed that he was managing to still stay in Gurgaon as he shares the rented accommodation with others from his village and they have been supportive so far.

25 year old Avinash Tripathi has a similar tale. Jobless for the last five months he was forced to borrow money from his farming dependent family in Ghazipur in Uttar Pradesh.

"It is becoming very difficult to manage the daily expenses. I ask the family to send me money. I have given several interviews but can't get a job anywhere," Mr Tripathi said.

Avinash Tripathi said that despite bachelor's and master's degrees in political science, he failed to get a job which forced him to take up a course in industrial training and come to Gurugram for job in a factory. Now that he has been here for four years and learned the skills of trade he wants to continue doing the same job.

Workers of factories say that companies have told them that more job losses will take place going ahead, adding to fears that even permanent workers will start getting affected soon.

Ajeet Singh, vice-president of trade union of auto components maker Bellsonica said, "Between December and February nearly 400 contractual workers were sacked. The company said that there is lesser production now. 200 more workers are being warned as work is getting lesser and more job losses will take place. Eventually work may take place only in one shift and even permanent workers may be in trouble."

Cost cutting has also begun with health benefits being among the first casualty.

"In the health insurance also they are saying withdraw the names of your parents. We can't pay for so many people," Jaspreet Singh, a worker said.

"We live for our family and even for them they are saying cut off their names. Our parents are getting older and there are chances of more ailments and also if they take away the insurance, the burden of medical bills will also increase," added Mr Singh.

If the sales numbers do not go up, more jobs will be lost from the automobile industry that contributes 7.5 per cent to the GDP and employs 37 million people.