The extension of lockdown until May 3 has come as an additional blow to lakhs of small traders and businessmen in the State, said C.R. Janardhana, president, Federation of Karnataka Chambers of Commerce and Industries.
“All our member companies were hoping to resume a portion of operation with 5 or 10 people, so that they could at least rotate the business somehow. Trader community in general is very upset with the PM’s decision to continue the lockdown,” he said.
Mr. Janardhana further said companies have paid full salary for March, though no work happened in the last week of the month due to the lockdown. “Now there won’t be any work happening the whole of April and how are are we to pay wages to our employees when there is no cash flow?” he asked.
FKCCI has requested the State government to defer its recently introduced minimum wage for a year. The government had asked industries to increase the minimum wage of all their employees, skilled and non-skilled, with effect from April 1. For companies, this would mean an additional outgo of 40%.
KASSIA president R. Raju said while the trade body fully supported the decision of the government to extend the lockdown, the small and medium-sized enterprises (SMEs) were facing an existential crisis and they needed immediate support and relief from the State and Union governments.
KASSIA has also asked the government for various measures, including payroll subsidy of minimum 50% for six months, taking care of ESI/PF payments for six months through government funding, waiving of fixed charges on electricity bills, moratorium on all payments by SMEs for six months, among others.
