Thousands of jobs are being slashed, as companies grapple with the mounting pressures of recession. In the international forefront, even the countries with developed economies; have been hit hard by the slow down. The global turmoil, which initially started off as a financial crisis, later lead to economic crisis is sending shivers; worldwide. The Indian textile sector, which was already wobbling due to rupee appreciation, and rising cotton prices, is hit hard than any other sector. Unable to tide over the crisis, many textile companies have laid off its laborers in the past six months. Consumers are caught between the Scylla and Charybdis of credit crunch, and a resulting job loss.

The Confederation of the Indian Textile Industry reports that 7 lakh people have already lost their jobs, and the count is expected to grow further. The retrenchments seen currently are contemplated by economic analysts as 'a tip of the ice berg'. Majority of the lay offs are targeted towards daily labors who make almost 25-35% of a companys work force, and 35 million out of the total workers in the Indian Textile Industry. Staffs at the junior, and entry levels are seeing the worst face of the meltdown. Even big companies involved in garment retailing like Eddie Bauer, Talbots, Cace, Foot Locker, Gap Inc, and Goodbye are involved in scaling down their operations. New recruitments have also come to a virtual halt due to the mired economy.

 

Textile merchants comment that, they are not feeling confident about their business in the forthcoming weeks. Decreases in the purchasing power of the consumers foretell an unpleasant market condition. Sales figure during the festival season of October was 20% lesser as compared with the previous year's figures during the same period. Those who are involved into export business are facing adverse situation. In the present scenario, those who manufacture only quality goods would manage to make a ransom. Manufacturers who are able to produce high quality of products and are willing to sell them at a competitive price, alone will be able to sustain themselves in the market.

 

While the serpent of global crisis keeps pressing down the economy, questions about retrenchment and Government's initiative to curb the turmoil will arise in everyone's mind. Fibre2Fashion spoke with eminent personalities and requested their opinion regarding the same.

 

Ashok Bhagat, Independent Job Consultant:

 

• Is this retrenchment a temporary or a permanent phase in the industry?

Jobs losses are temporary, but for some it will too long and short to some. Probably some have to switch over to various portfolios and may have to accept additional responsibilities but within textile segments. Those who can easily switchover may be comfortable. This applies to all the segments right from fibres to marketing. But for at least 6-7 months, it will be a difficult situation. The situation may improve after the mid of 2009.

• What is India's stand in Job losses compared to its peers overseas like China, Bangladesh, Srilanka, and Pakistan?

Compared to the neighboring countries except China and Bangladesh, we may be better-off.