Workers in small and medium enterprises (SMEs) would benefit from the relaxation of norms under the Atal Bimit Vyakti Kalyan Yojana (ABVKY) to enable the provision of unemployment aid to labourers, according to industries in the manufacturing hubs of Tiruppur and Coimbatore districts.
R. Ramamurthy, president of the Coimbatore District Small Industries’ Association, said industrial units had struggled to pay workers a portion of their wages during April and May. Many of them had even paid advance amounts to the workers so that they don’t suffer during the lockdown. Against this backdrop, the relaxations under ABVKY came as a relief. However, there was a need for better awareness among the industries so that they could ask their workers to apply for benefits for the lockdown period.
The South India Hosiery Manufacturers’ Association said it had asked the government to treat the lockdown as a period of special leave on medical grounds for the workers, and pay them 50% of their wages from the ESI amount.
Raja. M. Shanmugham, president of the Tiruppur Exporters’ Association, said the Employees’ State Insurance Corporation’s (ESIC) decision to pay employees 50% of their average wages for a maximum period of 90 days’ unemployment would help workers overcome the difficulties encountered during unemployment. Apparel Export Promotion Council chairman A. Sakthivel said the extension of the scheme for another year, till June 30, 2021, the relaxation of the eligibility criteria and the enhancement of the relief amount for workers who lost their jobs during the pandemic would help them sail through the crisis.
But, industry sources said more than 95% of workers in the micro sector and 20%- 30% in the small-scale sector were not covered under the ESI scheme.
“The micro units do not have the resources to pay for ESI benefits for its workers, and the labourers frequently switch jobs. So, a majority of the workers are not covered under the ESI scheme. They will not get the unemployment benefit. The government should come out with an alternative scheme for them,” said J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises.
