MORE WORKERS RETRENCHED DURING 1999

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Retrenchment of workers witnessed more than 23 percent increase during 1999 over the previous year. In its latest all-India survey, the Labour Bureau of the Ministry of Labour has said that 176 units resorted to retrenchments during 1999, affecting 2,503 workers. This is 30.37 percent more than the number of units affected by retrenchment in 1998. The maximum number of units going in for retrenchments were from the manufacturing sector. 40 percent of the affected units went in for the retrenchments due to lack of demand for their products. The causes for remaining retrenchments were ‘financial stringency’, shortage of raw materials etc.

The units in the Private sector accounted for a maximum of 73.7 percent retrenchments while 23.4 percent of such units belonged to the Public sector and 3.2 percent units to the Cooperative sector. Only 9.6 percent units were from the Central sector while the rest were from the State sector. Over 68 percent units affecting retrenchment of workers were in Gujarat. These units also accounted for 49 percent of total workers retrenched during the year.