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.
