The mill workers and unorganized labours in the time of COVID-19

There are mixed stories of mill workers in Dindugal district. While some are lucky to have got their wages even for the lockdown period credited in their bank accounts, others are yet to get their dues. Unorganized sector workers such as domestic helpers are the worst affected with no salary and are silently facing the brunt of the lockdown period.

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Sprays disinfectant in Rajakkapati, Dindugal: Photo/Rajeshwari, Vaanavil

Dindugal district is the third most COVID-19 infected district in Tamil Nadu. There were 54 coronavirus-infected cases in the district as on 10 April. The number of infected cases has grown up rapidly in the last four days, and 376 families across 14 blocksin the district have been quarantined as well. The fear of the virus is gradually percolating into smaller towns and villages. The impact of lockdown arising out of the virus on the rural population is immense. As most of the workplaces are closed, workers are worried about their jobs. From 6 April, most of the mill workers in the district were hopeful to get some wages for the month of March. And, it is true that some were not disappointed.

Despite the overall gloom around, Meena, a mill worker from Dindugal, has a smile on her face after many days. ‘Finally, my mill has credited full salary for the month of March. They have paid fully even for the lockdown days. It is good to know that they know the problems we are facing’, said Meena. The way she spoke of my mill displays her pride inbelonging to that mill. It also reflects her sense of ownership over the mill.


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During 8 to 10 April, the team from Vaanavil Research Collective interviewed 45 workers from 13 villages in Dindugal district. Of them, 30 were mill workers. The team found 20 mill workers having received the wages for the month of March 2020. Of these 12 workers got salary for the days they worked and INR 1,300 for the lockdown period. While two workers have got salaries even for the lockdown period, sixworkers have got wages for the pre-lockdown days. Another worker, Rajalakshmi, said, ‘The Mill gave INR 1,300 as an additional amount for the lockdown period’. These workers are happy, though some workers are suspicious. A worker, Muniyammal, points out, ‘We do not know whether this is advance for future work or salary for the lockdown period. It is not clear. But we are still happy to have received some money to cover our expenses’. The Vaanavil Research Collective has given names of the mills that have not credited salaries to the workers to Tamil Nadu Alliance, a civil society network, which is taking up the issue with various authorities and mills. The Collective hopes that the rest of the 10 workers and other workers will also get their due wages in a few days.

The rest, 15 workers, who are not in the garment industry have got no income at all. They are engaged as a coolie, agricultural labourers, milk suppliers, cow sellers, tree cutters, painters, radio repairing, etc. Some are also domestic helps.

Those working in the unorganized sector have no support, and there is hardly any civil society organization or trade union, which could take up their cases with the government.

These workers do not trust the government to take up the issue proactively. It is important to note that many of these workers live in clusters of Dalit and other marginalized sections. The casual daily wage workers are the most affected population.

Mill workers

The bad news, however, is the rise in indebtedness, even among mill workers. Chithra, one of the mill workers who did not receive the salary yet, said, ‘I have not got the salary for the March month yet. I have to incur medical expenses for my child. I have taken a loan of INR 10,000 in cash from the jewel pawn-broker. While I have got free ration, how will I get milk for my child or other groceries. Who will pay the medical expenses? I have to return loan taken through SHG’. The study by the Collective found that 7out of 30 mill workers have accessed loans during the last 15 days, ranging from INR 200to INR 20,000. Out of 45 workers interviewed, 13 workers have accessed loans. All the workers have accessed loan for making payments for groceries. One person has cited medical expense as reason, while another to repay old loans. Most of them have taken loans from neighbours and relatives. One of them has taken loan from jewel pawn-broker. Out of 13 workers who have taken loans currently, 8of them had taken loans even previously. So their loans are multiplying.

It is also important to note here that of the 45 workers interviewed, 18 workers had already existing loans that were to be repaid. Now, the number of indebted workers has risen to 23. The most common source of loans is Self Help Groups (SHGs) as 14 workers have taken a loan from them. There is also a worker who has taken cash through ATM cards. At least, one of them has taken two-wheeler loan. The total loan amount ranges from INR 1,000 to INR 3 lakh. It is good that taking the lockdown into consideration, two workers have been intimated by SHGs not to repay this month; another SHG has extended the due date to 19th of this month. However, there is increase in indebtedness. The loans are multiplying and the number of indebted workers is growing rapidly.


Also Read : Migrant Exodus During The National Lockdown

Rajeshwari, a member of Gethu group stated, ‘A few other colleagues from mills had taken loans at higher interest rates for their livelihood. As there is no idea of when our jobs will be back, this is affecting our mental health and well-being. Workers are leading a hand to mouth existence and struggling for one square meal a day as they also have expenses such as paying off EMIs, buying things for their children, etc. None of the above is fully met’. It is not that the lending market is very friendly. Another member, Mary says, ‘People are unable to get loans as money lenders are hesitating considering the repayment capacity of these loans in these times. One may see that those who have existing loans and are repaying regularly are getting new loans’. She says, ‘Money leaders are saying that you are living in rented accommodation, how will you repay the loans without going to job’. Arockiaraj, a Gethu member, says, ‘Now, if this continues, the education situation of the children will get affected. If we do not get salaries and are depending on loans, we will not be able to contribute or pay for our children’s fees’.

 

 

 

 

 

 

 

 

 

The situation has shown improvement this week, as the wage/salary of most mill workers got credited. First, most workers have also got some amount as compensation for the lockdown period. Of course, workers are going to lose on wage rate as well as incentives, but most recognize that even mills would not have any sale. It is important to note that workers have empathy with mills, while a similar empathy from mill-owners and bigbrands is surely missing. Second, loans have multiplied, and the number of workers accessing loan has increased.

The mental health of workers has affected. Children’s education and health are big questions.

The organizations that are working on addressing modern slavery have to come together and discuss immediate solutions for all their contribution in the last few years are going to be washed off in no time. The symptoms are out for the potential trafficking and bonded labour outcomes, once lockdown gets lifted. Finally, there is clearly an absence of support system for the informal workforces who are in daily wage. It is important to look at the overall scenario from the vantage point of equity, apart from collecting and analyzing information through gender and castelens.

(Sibija Bensigar, Stanley Joseph & Pradeep Narayanan are with Partners in Change, New Delhi)