Diamond production decreased by 21 percent, 10,000 workers lost their jobs, salary cut for others

face (Uttam Hindu News): On Thursday, January 19, diamond worker Vipul Jinjla, 31, consumed poison and ended his life. His younger brother Paresh told the media that for the last few months his elder brother was facing financial crisis as the salary was decreasing along with rising inflation and it was difficult for his brother to earn two times a day. In which he was forced to commit suicide.

Vipul is not alone, Surat Diamond Chairman Ramesh Jilaria said thousands of workers are struggling to meet their family’s needs, housing or vehicle loans, children’s school fees and daily household expenses on a regular basis. It is becoming difficult to pay EMIs.

According to rough estimates of the union, around 10,000 diamond workers have lost their jobs in the last few months due to production cuts and closure of small units. The union is demanding that the state strictly enforce labor laws in the diamond sector, which should be covered under the Factories Act, where workers get provident funds, fixed working hours, and other social and health security benefits, which Other laborers meet.

Jilaria complains that at present the diamond workers have no social security, as they are not registered employees and are not filing salary slips or income tax returns, so they do not get other benefits.

Vijay Mangukia, regional chairman of the Gems and Jewelery Promotion Council, points out that it is true that production has come down by 20 to 21 per cent, as imports from the US and other countries fell by 18 per cent during the Christmas peak. According to the data, the country’s finished diamond exports in December 2022 stood at $2356.70 million, which is 18.90 percent less than December 2021 exports of $2905 million.

Because of this, production units have to cut production, admits Mangukia, but disagrees that thousands of workers are unemployed. Retrenchment of workers does not cut production, instead, units have reduced working hours from 12 to 10 or 8 hours and instead of one weekly off, units now give 2 weekly offs.

Gilaria countered this explanation and alleged that due to reduction in working hours and increased weekly off, workers cut and polished fewer diamonds. Since their wages are linked to pieces and performance, these moves are proving disastrous for the employees.

Nanubhai Vekaria, president of the Surat Diamond Association, claimed that not a single diamond unit has closed down in the last two to three months. On the contrary, he claimed that unnecessary hue and cry is being created about the slowdown, while the industries are working at 100 per cent capacity. According to Vekaria, 3000 units in Surat are providing employment to seven lakh workers.