face: On the streets of Surat – the center of India’s diamond trade – words “Market” echoes in every corner. Many companies manufacturing, processing and polishing precious stones have sent their employees on a two-week “leave” from the second week of May.
Here “Market“- a nickname of “Market” meaning market, but pronounced with a soft ‘d’ sound – has an ominous overtone. It means “bad market” or “loss”. And “vacation” here is a euphemism for companies sending workers on unpaid leave.
However, this is not unusual in Surat. Employees become accustomed to these “vacations” during Diwali and summer vacations. The vacation during Diwali lasts between 15 days and a month, while the summer vacation lasts for a week or 10 days.
“The leaves during summer and Diwali will be combined with the school vacation so that the employees can spend time with the family. some companies send employees on leave When the market is down,” Damjibhai G. Mavani, Secretary, Surat Diamond Association (SDA), told ThePrint on Thursday.
But what is worrying this time is the increase in the number of units going on “vacation”.
Surat District Magistrate Ayush Oak said, “The holiday is nothing new… The only difference this time is that the number of companies giving the holiday is more as compared to other years.” told ThePrint on Wednesday.
According to news reports, Surat diamond industry One of the largest in the world, accounting for about 90 percent of India’s diamond exports and 80 percent of the world’s polished diamonds. However, it has been facing several challenges in recent years due to global factors such as trade wars, currency fluctuations, environmental issues and geopolitical tensions.
The SDA represents 5,600 companies and according to the district’s labor union, these firms employ about 7.5 lakh workers. Although The SDA did not have exact numbers on how many companies were summarily closed or how many workers were affected.
Bhavesh Tank, vice-president of the Gujarat Diamond Workers Union (GDWU), estimates that around 20 per cent of diamond companies in Surat – a ballpark figure of at least 200 firms – may have halted operations, and at least 3 lakh workers may be out of work. have been Affected
According to media reports, the workers, who mostly belong to low-income groups and migrant communities, are grappling with the uncertainty and hardship caused by these frequent “vacations” and the lack of social security. The government and industry associations are trying to provide some relief and assistance to them.
Ratnadeep Kaushalya Vardhan Yojana, a skill-development scheme for unemployed diamond workers, was one such scheme launched by the Gujarat government in 2009 during the global economic downturn.
Speaking to ThePrint on Wednesday, a government source said The SDA has said that the companies will resume work in time, but the major concern is not for the people employed by these companies. The brunt may be borne by third party units that provide services such as cutting or polishing to larger installations.
“The diamond industry is totally dependent on outside vagaries as it has no domestic market and is 100 per cent export oriented business. The variables are not under his control,” said the source.
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Reason behind ‘vacation’
Diamond company owners summarized the slowdown in the market as an accumulation of several key factors, including the global economic slowdown, especially in China (one of India’s largest diamond export markets), which has impacted demand. ; and the outbreak of the Russia-Ukraine warWho Import of rough diamonds from Russia has been banned.
Jatin Patel, who operates a small diamond unit with 40 workers, has not closed shop. He quipped on “holiday” for three reasons.
“Africa has been facing floods for the last one and a half to two months. Most of the diamonds come from there. The stones have been banned from Russia. Supply is slow. Also, there is no global demand at the moment. Every year, two to three months are lean, especially during summers,” he said, unfazed by the current development.
According to diamond company owners ThePrint spoke to, supply shortages have also increased due to to crash The number of banks in the US close around March, further crushing the situation in Gujarat, given that the US is a major buyer of diamonds.
Industry sources ThePrint spoke to said this forced many companies to send workers on “leave” last week.
SDA’s Mavani said, “There are so many diamond companies here, so no one keeps count of who has sent their employees on leave.” half his salary During this period.
Meanwhile, the GDWU has raised its voice and demanded full wages for the workers during the leave.
Speaking to ThePrint, GDWU Tank said through a document submitted to District Collector Oak on Monday that the union has demanded the state government to re-launch it. Ratnadeep Kaushalya Vardhan Yojana To provide assistance to unemployed diamond workers and to the families of workers who die by suicide.
Oak told ThePrint that the memorandum has already been sent to the labor department, which will follow up with the companies concerned.
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a worker’s struggle
Vijay Malvi, 28, whose job involves planning diamond shapes, was informed a week in advance of his two-week “leave” by his manager.
“To survive this period, you have to do something. For now, I have borrowed money from a friend for management. This is how we make ends meet on most holidays. Some colleagues who have ancestral land go to their village go back, but not everyone has that option,” said Malvi, who has a family of four children.
He’s been on vacation before, but with the economic downturn brewing, his face shows worry. He wonders if he will be asked to come back this time.
a january Economic Times The report quoted Tank as saying that around 20,000 diamond workers had lost their jobs in Surat in December last year.
For now, Malvi is hopeful that the leave period will be over by the end of this week, as assured by his manager. “We have been told to call before visiting the company and see if work has resumed or not,” he told ThePrint.
(Editing by Richa Mishra)
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