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CHOKING MSME DUE TO DISRUPTED LABOR SUPPLY AND VAUNTED POLICIES

  • Oct16 2024
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COVID-19 has undoubtedly brought severe setbacks to each one of us. The problems are getting aggravated due to the ignorant and lassitude approach of government employees. Here I present a case study of a micro firm observed in real life facing severe hardships due to the combination of market and bureaucracy problems. Names are changed to maintain anonymity. CASE STUDY About the firm: Mr. Harish Sahney is the proprietor of Sahney Enterprises. The business was commenced in 2004 and is operated in a small city Alwar, Rajasthan. Business operations deal in the manufacturing of iron-related products (e.g. gates, railings, flower pot stands, playground equipments, etc.) and classified under the micro industry. Elaborating more on the nature of products, Mr. Sahney has even worked with a few industries, has manufactured the industrial sheds as well. Mr. Sahney is one of the renowned fabricators of the city. The nature of business demands the skill of welding and fabrication. This firm has the potential to absorb around seven trained welders and five semi-skilled workers, given the present market situations. Problems: Unfortunately, presently there are only three workers employed, out of which only one is trained and the rest un/semi-trained. Due to the non-availability of labor, the person has to forego the orders worth lakhs in the past two months. This has significantly slashed the earnings of the proprietor. When the pandemic set in and the lockdown was imposed, business operations were halted, so were the earnings. The Intersection of Problems and Government Machinery and The Outcome: As the economy entered into the phase of unlocking, Mr. Sahney started to hunt for the workers as a few workers who were previously employed, left on their own. Government at the center and state level massively advertised about the launch of various employment exchange portals. These portals claimed to solve the supply-demand mismatch in the labor market. The common objective of these multiple portals was to bring employers and employees on the same page and let them find each other as per their convenience. So, Mr. Sahney who was suffering from labor problems registered on these portals. Firstly, he registered his grievance on the MSME Champions portal (https://champions.gov.in/Government-India/Ministry-MSME- Portal-handholding/msme-problem-complaint-welcome.htm). The outcome was not as it should have been. A representative called up and asked to fill in some details in an excel file and mail it to the prescribed email id. After which no one cared to take interest and solve the problem on the ground level. He also went on to register at the Rajkaushal Yojana portal launched by the state government of Rajasthan (https://rajkaushal.rajasthan.gov.in/). This portal claims to have uploaded the data of 52 lakh job seekers (in various categories) but has no data on how much people were able to find a means of living for themselves, ironic! After fifteen days, Mr. Sahney received a phone call from a representative, asking if he wants to extend the deadline for applicants, he nodded. However, the irony lies in the fact that no one applied before the extension nor after it till date! Here arises an interesting question. Is the data correct? Because it is quite a paradoxical situation, out of 52 lakh people no one is skilled in welding/ fabrication. The story becomes even more interesting when Mr. Sahney received a list of employment seekers over email from the department. Surprisingly, none of them was a welder. Some were construction workers, some were seeking a job in medicine, some were looking for some managerial tasks. But none to work as a welder, most applicants were the MGNREGA workers. Mr. Sahney even posted the job vacancies on the Yuva Shakti app (https://play.google.com/store/apps/details?id=com.yuva_shakti&hl=en_IN) that too several times, but all in vain. During all this happening, he wrote to the DIC (District Industries Centre) Alwar (dicalwar@rajasthan.gov.in), Secretary of MSME at the State level (secretary- msme@nic.in), IAS, Commissioner of Industries of Rajasthan Government (indraj@rajasthan.gov.in), and Ministry of MSME at the National level (min-msme@nic.in). Response to this was that his mail to DIC was forwarded to the Managing Director (md.rsldc- rj@nic.in), District Incharge (Abhinave.Dixit@IN.GT.COM) of Rajasthan Skill and Livelihoods Development Corporation, and Additional Director, Industries (indrajfo7@rajasthan.gov.in). The culmination of irresponsibility could be quoted as an example by their response after all this. They responded by making a phone call to Mr. Sahney. The representative asked about the problems and ensured him that actions will be taken to resolve the labor issues in his enterprise. As one could anticipate the working of government machinery, no further actions were taken to resolve this issue. Another example of the epitome of ignorance was set by not taking up this issue further. Mr. Sahney went to the district Labor Exchange Department, met the senior-most officer, wrote an application demanding labor. The officer asked for a week to look into this matter. He called the concerned officer after one week but he also seemed uninterested and overburden! Mr. Sahney even took his twitter handle and posted his grievance as a reply to a tweet by the MSME Champions portal. Response by them asked him to provide the grievance number. No one cared to respond to this small issue in an economy that dreams of becoming worth 5 Trillion!

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