Profit vs wages: Lockdown has taught firms a lesson that will hurt labour

Listed companies made bumper profits in the quarter ended September 2020. They registered their highest aggregate profits during the most recessionary times in Indian history. The economy is shrinking this year and companies have seen their sales decline year-on-year for five straight quarters. But, listed companies have never made profits like they made in the quarter ended September 2020. Understandably, shareholders are being awarded interim dividends or buy-backs. There is still very little interest in investing into new capacities.

Owners of capital have benefitted well in these very difficult times. But, labour has not been as lucky. Cumulatively, net profits