As the first payday following the demonetisation arrived, blue-collar workers are having a tough time getting cash.
Several companies in Noida issued salaries on December 1. Pawan Kumar, CMD of Electra Company, said, “Factory labourers whose salaries are below Rs 10,000 are normally paid in cash. But due to the shortage of cash, they were paid in cheque this time.”
As a result, workers now have to stand in queues first to deposit cheques, and then to withdraw cash. It is a whole different nightmare for those who don't have bank accounts. They have to create bank accounts before they can even dream of getting their hard-earned money in hand.
There's also the additional problem of taking leave from the factory, so they can get the bank work out of the way. For every leave they take, they have to forego a day's salary. It's a double whammy for them.
Raambir Singh, a labourer at a factory in Noida, said that despite having worked hard the whole month and getting his deserved salary, he still doesn't have the cash to run the household.
On the other hand, the factories, too, are in a fix. Most transactions for raw materials are done in cash, and now, with that hard to come by, the procuring of raw materials has also become a problem.
Members of Noida Entrepreneurs Association (NEA) believe that the transport and logistics that keep factory work afloat will further take a hit, with petrol pumps refusing to accept the old 500-rupee notes after December 2. Kamal Kumar, general secretary of NEA, said, “This will stop raw materials from reaching factories.”
NEA is an association of Noida-based industries which aims to promote their development and bring together entrepreneurs under a unified organisation.