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Labor crisis hampers Indian factories to complete orders

Over the past few months, most garment factories have had good orders, some of which have even been booked for the next few months. In such a situation, there is a labor crisis in the factories of Gurugram, Noida, and Faridabad.

Labor crisis hampers Indian factories
Figure: A large number of workers who went to the village for Holi and Eid festivals did not return, so many factories have a 15-20 percent labor crisis.

A large number of workers who went to the village for Holi and Eid festivals did not return, so many factories have a 15-20 percent labor crisis.

So far, factories have been managing orders by working overtime (OT), but looking at the cost aspects, they do not want to do the same thing regularly.

Anand Bhatia, VP, Operation of Pearl Global, said, “Yes, there is little shortage of workers as a segment of workers who have not gone to their villages due to Covid or any other reasons last year, are now spending more time there. Now the workers are expected to come back only in mid-June or by the end of June.”

To overcome this challenge, factories’ HR teams are looking towards training centers spread across India and motivating the youth to join factories.

HR manager of a leading apparel manufacturing company, said, “Our team has visited few centers in remote areas and had long discussions with the trainees there. We are able to get few workers with our best efforts, but these are not enough.”

However, this solution is not suitable for many factories as such trainees have no prior experience working in factories.

Among them an industry professionals who say that there are newcomers and workers with limited skills, but because of the workload, they do not have time to train or work on low productivity, and so his unit is forced to work in OT.

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