Some units are looking at 100% loss as they have only one person to handle a task
The third wave of the pandemic is causing huge productivity losses and delayed deliveries for Micro Small Medium Enterprises (MSMEs) in Karnataka, as up to 20% of their workforce is currently on sick leave due to flu or COVID-19, as per reports. As per industry players and trade body sources.
Dr Subramaniam, Managing Director, SLN Technologies, a city-based indigenous electronics systems design and manufacturing firm specializing in strategic electronics for the aerospace, defense and nuclear industries, said that most small-scale units have a job to do. will be a person, and if that one person does not report to work that the whole operation of the firm shall suffer.
“Even one person’s absence can have a multiplier effect on small businesses. Continuity is broken, workflow slows down, normal operation gets affected. This is a chain reaction. If the cutter does not come, the tailor will have no work to do. So for some industries the productivity loss can be even 100% in some cases. With the third wave, 15% of SLN Technologies employees are on sick leave, on rotation,” Mr Subramaniam, who is also a member of the CII Karnataka State Council, said.
Echoing similar sentiments, the former president of Karnataka Small Scale Industries Association (KASSIA) and owner of Ven-Gree Metal Punch, a firm based in Rajajinagar Industrial Estate, said the increasing absenteeism is hampering the delivery schedule, Especially when the sector was trying to fight many hurdles like rising raw material prices, dwindling demand in the retail market and apathy of the government.
“MSME sector back to back is under attack of some sort or the other. Entrepreneurs took pride in creating wealth and jobs. But today, running any small business comes with unspeakable suffering. I don’t know how long we can go on like this, especially when the government has no desire to support the sector,” Mr Raju said.
Former FKCCI Chairman and Managing Director of Press Tools and Elements, Thallam Venkatesh argued that even before the pandemic the MSME sector was in deep trouble, as one of the major industries, the auto sector, was going through a tough patch.
The representatives of the trade body are asking the central government to give some compensation to MSME workers from thousands of crores of unclaimed pool of ESI and PF funds. “The third wave is creating anxiety and uncertainty for entrepreneurs and workers alike,” said Mr. Venkatesh.