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Daily-wagers to lose jobs if industry cuts output
Friday, November 06, 2009
By Farhan Zaheer
KARACHI: Vulnerable industrial workers, especially daily-wagers are about to face tough times as the energy-starved industry braces itself for gas load management, which may lead to a low output.
As the government struggles to cope with gas shortage in winter, especially in Punjab and the NWFP, industrialists are worried over the declining production figures. On Wednesday, the federal cabinet announced a gas load management plan to curtail supplies to industries for two days a week on rotational basis.
Sharafat Ali Mubarak, former president of Sarhad Chamber of Commerce and Industry, told The News over phone that government’s decision to limit gas supply to the industry in the winter season would certainly reduce industrial output.
Mubarak, who hailed from the NWFP, the province most affected by the war on terror, said the gas load management would further aggravate the falling industrial output in NWFP province.
About workers, especially daily-wagers, he said, “it is obvious that less industrial production means few opportunities for workers. Who will give them work when the industry endeavours to win the battle of survival?”
He believes that industrialisation is directly linked with poverty and terrorism. “If you want to reduce high unemployment prevailing in the country, especially in the NWFP, you must support the industry which has been facing unprecedented challenges as the country takes on the militants,” he said, adding that one of the major factors that lead, “our youth to terrorism is unemployment”.
Industrialists in Pakistan face grave challenges especially in NWFP where law and order has literally shattered all the business activities, he said, adding that the economy of province is on the verge of despair and present a very bleak picture of helplessness.
Razzak Hashim Paracha, Chairman of Korangi Association of Trade and Industry, one of the biggest industrial zones of Karachi and Pakistan said, “Daily wagers will be the first stratum of people who would suffer the affect of the decline in the industrial output owing to the worsening energy crisis.”
Approximately some 32 per cent of the total labour force of industries consists of daily wagers, and their earnings and social life will be badly hit. “Daily wagers will get the first hit as rising energy prices will increase the salaries bill of industries,” he said.
Usually industry plans two to three months ahead for production and delivery of goods. Industries strive to deliver their orders on time, for which they need to run six days a week using costly furnace oil which increase the cost of production. In addition, paying double overtime would be another burden on manufacturers, he explained.
On energy production and management, government should devise long-term policies instead of such haphazard decisions that affect industry, he added.
Idrees Gigi, Former Chairman of Federal B Area of Trade and Industry from Karachi said that daily wagers will be hit hard in coming months as energy-starved industry would reduce its production capacities on the back of high cost of production.
Industry provides 60 per cent of the total revenue to the national kitty and similar percentage of jobs to the people of Pakistan. “Instead of helping industry government discourage the most powerful sector which produces most jobs, especially to unskilled strata of society which has been affected badly in the current wave of inflation,” he said.
Daily wagers are mostly employed in cottage industry, which itself is very vulnerable and any disruption in output flow would result in layoff and shutdown, he added.
Government should implement its energy conservation policy regarding shops, markets and marriage halls instead of cutting gas and power supplies to industries, he urged.
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ISSN 1563-9479 
