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Post demonetisation, the slump in businesses across the capital has not just reduced the demand for workers but has also increased supply of cheap labour. This, in turn, has caused wages to plummet.
Shabeer, a 57-year-old permanent worker in a steel untensil manufacturing unit in northwest Delhi’s Wazirpur, was told that November 10 would be his last working day. After paying their salaries in banned currency notes, the owner of the unit sacked 70 workers, including Shabeer, because orders for utensils had come to an absolute halt.
Like Shabeer, thousands of workers have been fired or sent on forced leave in Wazirpur industrial area — which houses roughly 1,000 utensil and steel manufacturing units and employs roughly 70,000 workers. While most workers have been making their way back home to villages in Bihar and Uttar Pradesh, many decided to stay back in the capital.
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“I decided to look for alternate work. Azadpur mandi usually has work for loaders and off-loaders. If I go back home, I would only burden my family so I decided to give it another shot in the city,” he said.
When Shabeer went to Azadpur mandi in mid-November looking for work, a few shopkeepers and contractors agreed to hire him. However, while the going rate for off-loading a 10 kg sack of onions was over Rs 20, Shabeer was being offered Rs 13 instead. “I agreed because it was better than nothing. I would make Rs 200 a day,” he said.
Jitender Kumar, another worker at the mandi, said he made on Rs 100 on Sunday. He spend Rs 50 on lunch and saved the rest for dinner. Hundreds like Shabeer and Karan have been flocking to the mandi for work, but business at the market too has seen a slump.
Rajender Sharma, president of the Federation of Fruit and Vegetable Traders’ Associations, said, “Not only have prices of vegetables fallen, sales have fallen by 20-30 per cent, most customers are buying on credit. Around 80 per cent of my sales last month has been on credit.”
Sharma, who sells onions and potatoes at the mandi, said labourers are paid as per a fixed fare chart decided by the government. Other shopkeepers admitted that because business was down, ancillary work has been affected.