Surat Diamond Industry staring at huge job losses

Surat : The Diamond Workers Union Gujarat (DWUG) has raised serious concerns about the large-scale job losses of the diamond artisans by the end of August following the 10-day mini vacation announced by many big and small diamond units including Kiran Gems starting from August 17. 

DWUG office-bearers submitted a representation to the Deputy Labor Commissioner and the Joint Director, Industrial Safety and Health Department, demanding that the diamond units going on 10-day vacation should pay to the diamond artisans. IF the diamond units are not complying with the vacation pay to the artisans should be dealt with stern legal action for depriving the artisans of their livelihood. 

Kiran Gems and many other diamond companies have announced 10-day vacation citing overproduction and dwindling demand for polished diamonds in the international market. Kiran Gems, one of the world’s largest diamond manufacturing company based in Surat has declared a 10-day vacation for its 50,000 employees starting from August 17 to August 27 following the dwindling demand of polished diamonds in the international markets, especially in the USA, Hong Kong and China–the three largest diamond consumer market in the world.

Due to the severe recession in the diamond industry, a large number of diamond artisans  have become unemployed and suicide incidents are increasing continuously. If the 10-day vacation is announced for the festivals like Rakshabandhan and Janmasthami, then there will be a severe financial crisis in the houses of the diamond artisans. 

Bhavesh Tank, vice-president of DWUG said, “In many diamond companies, about 25 to 50 diamond artisans are being laid off randomly so that the true information of the artisans is not revealed and the owners escape from paying bonus and other perks under Labour Laws”

When many small and large factories in the diamond industry are closing down under the guise of vacation, the artisans working in such factories are also becoming unemployed. There is no likelihood that most of the small and medium units will reopen after the 10 day vacation. 

“We have urged the Labour department to form a special squad to check the number of diamond units joining in the 10 day vacation and legal action be taken against those who are deprived of the benefits of salary and bonus pay” said Tank. 

Currently there is a severe recession in the diamond industry due to which a large number of jewelers have become unemployed and in the last 16 months approximately 65 jewelers have committed suicide.