15th July, 2003
Ministry of Labour  


LABOUR BUREAU PRESENTS THE STATISTICS ON CLOSURES, RETRENCHEMENTS AND LAY-OFFS IN INDUSTRIES IN INDIA DURING THE YEAR 2001


During the year 2001, as many as 151 Closures were reported of which 6 were in the Central Sphere and 145 in the State Sphere. Altogether 11,599 workers were affected including 826 in the Central Sphere. About 61 percent (92) of the Closures were due to ‘Financial Stringency’ and 11 percent (16) due to ‘Lack of Demand for Products’ and remaining were due to such causes as ‘Wages & Allowances’, ‘Indiscipline’, ‘Shortage of Raw Material’ and ‘Other Causes’. The 6 cases of Closure reported in the Central Sphere were from Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh. The highest number of Closures (23) were reported in ‘Industry Group 27 – Manufacture of Basic Metals’ while the largest number of workers affected (2,972) were in ‘Industry Group 17 – Manufacture of Textiles’, the highest number of Closures (21) occurred in the month of July involving 1,476 workers. The largest number of workers (2,747) or 24 percent of the total workers affected, was in the month of March.

In all, 133 Retrenchments affecting 3,668 workers were reported of which 12 Retrechments affecting 822 workers were in the Central Sphere. The main cause for Retrenchments was ‘Financial Stringency’ (38 percent) followed by ‘Lack of Demand for Products’ (34 percent). About 13 percent of the Retrenchments occurred in ‘Industry Group 24 – Manufacture of Chemicals and Chemical Products’ and 11 percent in ‘Industry Group 29- Manufacture of Machinery & Equipment not elsewhere classified’. Out of 12 Retrenchments in the central Sphere, 5 occurred in Maharashtra affecting 319 workers, 4 in Rajasthan affecting 177 workers, 2 in Haryana affecting 251 workers and 1 in Delhi affecting 75 workers. While Private Sector accounted for 86 percent (115) of the Retrenchments, the remainder was distributed amongst Public Sector (16) and Co-operative Sector (2). The highest number (22) of Retrenchments occurred in the month of March affecting 11 percent of the total workers retrenched.

The number of cases of Lay-offs reported during 2001 was 236 affecting 26,231 workers resulting in a loss of about 24 lakh man-days. The share of Central Sphere in these Lay-offs was about 3 percent affecting 1,522 workers accounting for a loss of 36,523 man-days. The most prominent cause (68 Lay-offs) was ‘Lack of Demand for Products’ followed by ‘Financial Stringency’ (58 Lay-offs). The largest number of Lay-offs (57) occurred in ‘Industry Group 17 – Manufacture of Textiles’ in which 11,373 workers were laid-off resulting in a loss of 10,20,136 man-days. Out of 236 cases of Lay-offs, about 80 percent occurred in Private Sector; 17 percent in Public Sector and the remaining in Co-operative Sector. The highest number (24) of Lay-offs occurred in the month of July affecting 3,298 workers and resulting in the loss of 1,73,076 man-days.