About two-third of skilled workforce in jewellery sector has left for their hometown or switched to alternative means of livelihood due to the current strike over excise duty levy. These workers belong to West Bengal and Bihar. They have left for their hometown in large number. According to trade sources, workers have left from all across the country for their hometown.
Over 200,000 skilled and unskilled workers are employed largely on daily wage basis in the popular Zaveri Bazaar market alone. Normally, they get salary on weekly basis for the number of days worked and additional sum for overtime work they do. But, because of the ongoing strike, they have been facing survival problems as their weekly salary has stopped.
Over 200,000 skilled and unskilled workers are employed largely on daily wage basis in the popular Zaveri Bazaar market alone. Normally, they get salary on weekly basis for the number of days worked and additional sum for overtime work they do. But, because of the ongoing strike, they have been facing survival problems as their weekly salary has stopped.
Read more from our special coverage on "JEWELLERS STRIKE"
Abrupt departure from the industry in bad taste would impact jewellery sector badly in the long term. Not only jewellery shop owners spend thousands of rupees on their training in a professional institute and retain them as loyal employees throughout their lives, but also their return to the jewellery industry becomes difficult once they move out.
“In usual course, they used to send money to their hometown after receiving salary which has stopped because of the ongoing strike. Now, workers do not see any ray of ending the strike in sight. Hence, around two-third of workers have left for their hometown and others are on the verge of doing so,” said Kumar Jain, Director, Umedmal Tilokchand Zaveri, a Zaveri Bazaar based jewellery retailer.
Thus, the jewellery sector is suffering from both sides. In one hand, their income has come to standstill because of shutting down their businesses for 40 days in protest of 1% excise duty levy, they fear acute shortage of labour once strike is called off.
Neither the striking jewellers nor the government are inclined to step down from their position. Despite meeting with all top leaders of the ruling Bharatiya Janata Party (BJP), including the party president Amit Shah, the finance minister Arun Jaitley and road transport minister Nitin Gadkari to name a few, the government has not shown any signs of rolling back the excise duty as demanded by the striking jewellers.
Interestingly, the Prime Minister’s Office (PMO) has turned down the jewellers’ request to meet him over the issue.
Ashok Minawala, Director of All India Gems and Jewellery Trade Federation (GJF), argues that the levy of excise duty would bring back “inspector raj” as the inspector under the Central Excise Act will have a lot of powers. The government terms the levy as a step to curb “black money” in the system.
To prevent Indians from buying gold considering the same as “dead asset”, the government raised import duty on gold to 10% in phases over two years ago. Still consumers’ appetite for gold remained unabated with the import of gold continuing at around 1000 tonnes through both official and smuggling route.
“We have relieved workers temporarily with an assurance to call them back after calling off the strike,” said a jeweller on condition of anonymity. The Union Finance Minister Arun Jaitley held the levy as an attempt towards the preparation for the Goods and Services Tax (GST). The government attempted to levy Excise duty twice in the past but, rolled back under pressure from jewellers.
Meanwhile, a certain section of jewellers are doing their business selectively to meet the demands of their customers for festive and seasonal demand. They are also selling jewellery to their loyal customers as usual. But they claim that they are not doing business with new customers as a mark of protest.
Rahul Gandhi to take up the jewellers issue
Meanwhile the Congress is seeing a good opportunity to fish in troubled waters. Congress Vice President Rahul Gandhi is scheduled to address striking jewellers at Zaveri Bazaar on Tuesday, said Sanjay Nirupam, Mumbai Congress Committee President. Earlier, the striking jewellers also met Uddhav Thackarey, Shiv Sena chief seeking support from his party.
Meanwhile the Congress is seeing a good opportunity to fish in troubled waters. Congress Vice President Rahul Gandhi is scheduled to address striking jewellers at Zaveri Bazaar on Tuesday, said Sanjay Nirupam, Mumbai Congress Committee President. Earlier, the striking jewellers also met Uddhav Thackarey, Shiv Sena chief seeking support from his party.