Since Diwali,two lakh jobs lost in Surat diamond hub: govt admits

In the three months after Lehman Brothers collapse in September 2008,at least five lakh Indian workers have lost their jobs...

In the three months after Lehman Brothers collapse in September 2008,at least five lakh Indian workers have lost their jobs,a recent Labour Ministry survey found. Workers in the gems and jewellery sector were the worst affected.

About 93 per cent of Indias workforce is in the unorganised sector with no social security cover. The Labour Ministry assessed the ground realities in Surat,Indias largest cluster of gems and jewellery units,in consultation with the citys district collector,police commissioner and the Gujarat administration and its findings were shared with the PMO late last month. The Sunday Express has a copy of the report,which reveals the ripple effects of job losses on the economy.

amp;149; Most gem and jewellery units havent opened or functioned normally since Diwalithe 2,500-3,000 large diamond units employed about 4 lakh workers,half of whom have lost their jobs.

amp;149; There were 10,000 unregistered units employing 5 to 7 workers each,not covered by the Factories Act or any social security scheme. Their annual Diwali break was at least 45 days in 2008,as opposed to the usual 25 days. The labour commissioner and state officials had to intervene to restart 135 units.

amp;149; Nine diamond workers have committed suicide,according to the police commissioner. The Rural Labour Commissioners social security insurance scheme does not cover suicides.

amp;149; About 75 per cent of workers in the city are migrants under 35. Most have left the city after losing their jobs.

amp;149; As many as 1,848 students have dropped out of school; fresh admissions into schools have halved from 2900 to 1400. The district administration has asked schools not to insist on fees for the children of diamond workers,who work on piece rate basis and have no safety net.

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amp;149; The UPA has recently decided to give an unemployment allowance to laid-off workers covered under the Employees State Insurance Corporation ESIC for one year. But in Surat,99 per cent of the estimated one million workers in the diamond industry are not covered by the Employees Provident Fund or ESIC. The UPA has proposed to expand the EPF net to firms employing even ten workersfrom 20but several ministries have opposed the idea.

amp;149; When BJP MP Parshottam Rupala sought an ad-hoc interim relief package from the Centre,the Commerce Ministry said measures to help exporters have been taken,but unemployment is not its concern.

amp;149; A special tripartite committee was set up in December 2008 to monitor and resolve the situation in the diamond industry. Though it was decided to restart all units by January 1,only about 141 medium and big units employing 41,558 workers have restarted.

amp;149; The state is working towards exempting the sector from VAT and Entry Tax. The Centre has asked the EPF and ESIC commissioners to review the coverage of workers. It has also asked the state to formulate a social security scheme for unorganised sector diamond workers.