Industry feels effect of migrant exodus

Mumbai’s retail and construction sectors also take a hit

MUMBAI/PUNE/NASHIK: The anti-migrant campaign unleashed by the Maharashtra Navnirman Sena (MNS) may be similar to the one the Shiv Sena launched in the mid-60s but the impact this time has had wider repercussions on industrial areas.

In Mumbai, the demand for migrant workers in sectors like retail, construction and security is increasing. “The retail industry would barely manage without migrants,” says an HR manager at a retail chain, who did not want to be named. “Who will fill the vacancies at the lower levels of the retail trade?” she asks.

In the automobile and industrial hubs of Pune and Nashik, the exodus of migrants after the attacks on them has become a major concern, with an estimated 30,000 workers packing their bags and leaving.

Nashik’s MNS chief Vasant Gite counters: “We never targeted industries and we’re ready to help them out in this situation. If they need people to work, we can provide them with workers.”

However, that is easier said than done. Industry sources told DNA that the immediate fallout could be a steep increase in labour costs, which in turn would lead to a hike in the prices of goods manufactured.

In Pune’s Bhosari industrial area, there are about 6,000 small scale units employing 1.50 lakh labourers, one-third of whom are North Indians.”

A large number of them have left the city or are hiding for fear of being beaten up,” says Pravin Mistry, president of the small scale industry owners association. “Production is already down by 25%,” he said.

In Nashik, the exodus of North Indian workers has hit half the area’s industrial units. The migrants mostly worked in shopfloor jobs involving moulding, welding, metal pressing and handling furnaces. Their employers say very matter-of- factly that only the North Indians are able to do such heavy work.

Moreover, employers have no major overheads as they workers are taken on contract. They were also impressed with their sincerity and regularity at work.

Since February 12, as per industry estimates, over 15,000 people have left Nashik, triggering off a huge manpower crisis. Over the long term, businessmen expect  repercussions in tourism, agri-business and  construction.

Tushar Patwardhan, proprietor of Tushar Udyog in Nashik, says his business of making aluminium castings which recorded a 50% growth last year has gone haywire.

“I had 32 people working with me and  25 have gone away. My security guards who are  north Indians aren’t  reporting to work and my vendors, also north Indians, have left, leaving jobs undone.”

Patwardhan urged his staff to stay on the factory premises and even offered them  food and police protection, but they left. “They left in fear when they heard some people were beaten up,” he says. For two days, he had to work on the machines himself.

“I have to now go in for automation. Maybe I should have done this much earlier, but I wanted to create jobs for people. Not any more.”  He has sent his people to Igatpuri and Bhandardara near Nashik to look for manpower but has had no luck so far.

Anant Kulkarni,  who operates a tool manufacturing unit at Bhosari, says: “I’m lucky as I only have Maharashtrian workers. But my neighbour’s unit has 40 workers - all from North India, who have gone  missing after the anti-migrant tirade began. Please tell Raj Thackeray to first provide us substitutes from Maharashtra who are as efficient as those from North India,” he says.

Nishikant Ahire, president, Nashik Industries Manufacturers’ Association, says, “Not only industry, but the image of the city has been affected. Investments are not easy to come by in  Nashik and this exodus was least expected. We are taking out peace marches and meetings to instill confidence in the minds of people who are frightened. While small scale units have been directly hit, even majors like Mahindra & Mahindra  are likely to suffer indirectly as their vendors have suffered. Many companies have reduced their work shifts to two instead of three.”

Ironically, the violence has also affected Maharashtrian business.  Aniruddha Atahni of Chandan Foods in Nashik who makes fried snacks says his Maharashtrian workforce has run away too.  “My people had told me a day earlier that there were fights in their localities between the north Indians and those speaking Marathi. In the process, they were threatened.”

Dhananjay Bele, president, Ambad Industries Manufacturers’ Association in Nashik, says  small scale units have shut down completely. “Industry has no bias. We hire anyone who has competence for the work required. North Indians are ready to do hard work,” says Bele. He points out that there are no takers for the jobs left vacant by the fleeing migrants. “We urge Marathi youths to come forward and grab the opportunity. I have been saying this for a week, but no one has come forth.” On Friday, Bele held  a meeting with local MNS leaders, who gave assurances of help.

In Mumbai, S Shankar, who runs a security agency, says, “I will have to simply close my agency if migrants leave. The locals don’t like this kind of work. North Indians are popular as security guards because of their physiques and willingness to do these low-paying jobs. It is rare to see a Maharashtrian as a guard.”