Labour in the times of lockdown
Entrepreneurs preserving their resources by retrenching workers during current crisis are likely to be worst off post pandemic compared to firms that are looking after their human resource in these testing times.
The unemployment situation is worsening in Pakistan with every passing day because of the lockdown.
The governments in Pakistan are always blamed for economic ills of the country but the attitude of its private sector in times of crisis also highlights the reason that fails most of the enterprises in bad times. The private sector always complains about shortage of right skills. During the times of growth, they go to any length to hire the best possible human resource available in the market. In fact, they poach better workers from competitors as well.
When the going is not good the first cut in expenses is in the form of layoffs of workers from the manufacturing floor and sales force. They never realise bad times do not last forever. In case of inept governments', the period may prolong to a year or two and in case of a natural calamity, like the present pandemic, it could at best take a year or so.
After the crisis is over, they struggle to restart production as they do not have the right human resource. Those fired during the crisis do not come back if they have adjusted themselves elsewhere or have changed their profession.
This is the reason out of over 400 spinning mills for instance only 25 percent thrive and make up for the loss suffered during periods of crisis. Majority of these mills have never touched their human resource in bad times. Most of them enjoy free utilities and even lodging at the factories on top of regular monthly salaries.
The entrepreneurs that look after their workers also feel the same financial restraints felt by others, but their philosophy is that whatever they earned in the past was due to the hard work of their employees. They first pay their salaries from their reserves and when they see the reserves would not be enough, they mortgage the assets built over years from the earnings of their enterprises. They assure their workers not to worry about their jobs as such companies put on hold all other projects and divert all resources to save their human resources.
This should be the spirit in times of stress that is akin to the government efforts of assuring at least food supplies to the entire population irrespective of the fact whether they are employed or jobless. A cursory study of the job market in Pakistan reveals there are some firms that cater to local needs only and are awash with unsold stocks. Since the markets are closed there is no way to dispose of these stocks. Even then they are paying their employees their full salaries on time. Then there are some enterprises that cater both to the domestic and export markets.
Those that have some export orders in pipeline have retained only the workforce needed to complete those orders, while rest have been given marching orders. Then there are some enterprises that also serve both domestic and export markets, but their orders have been suspended because they had laid off their entire workforce following coronavirus lockdown.
It is worth noting that businessmen across the board are pleading with the government for concessions on utility bills and taxes because they are under stress, but they do not see the stress their workers are under. There are trade bodies that are donating handsomely to the Prime Minister's COVID-19 pandemic fund but are ignoring their workers.
They may be thinking their photo sessions with the premier might create an impression that these God-fearing businessmen are truly concerned about the plight of their countryman.
They conveniently forget that the charity begins at home; their starving workers should have been their priority. Competent human resource is more important than their other assets; please do not lose them.
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