Auto sales improving Vendors reluctant to boost workforce
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KARACHI, July 16: Automobile vendors are still reluctant to hire fresh workers on permanent, contractual and daily wages basis despite sales have started recovering since April.
However, some assemblers say they have not started fresh hiring yet as recovery in sales is still not very sound, while others say they have engaged new hands for different positions.
Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Chairman Jawed Shaikh said out of total 200,000-225,000 workers in the organised vending industry some 50,000-55,000 had lost their jobs on persistent fall in sales due to high prices, rising car financing, uncertain economic and political situation etc., during the last fiscal year.
“Vendors have no plans to re-employ old workers or even to open new job avenues as increase in sales is negligible,†he said, adding that cut in car prices following removal of five per cent federal excise duty (FED) on above 800cc in the budget 2009-10 has yet to lure buyers in larger numbers.
“We may continue operating with the existing workforce till substantial increase in vehicle production does not arrive,†he added.
PAAPAM former chairman Mohammad Ashraf Shaikh said that it would be better to run the industries with existing workforce by paying it one-to-three hours’ overtime instead of hiring new hands.
He said currently his two units were operating with just 78 and 35 employees which were earlier being run by 285 and 155 workers, respectively.
“Sale situation cannot be termed satisfactory which can be gauged from fact that Pak Suzuki Motor Company Limited (PSMCL) has reduced prices of 800cc models to boost its sales after vendors agreed to reduce parts and accessories prices by five per cent, Ashraf said.
Official spokesman of PSMCL Shafiq Ahmed Shaikh claimed that the company had not shed its direct employees (permanent employees) in 2008-09.
It however had outsourced various works to the company’s contractors who had retrenched hundreds of jobs because of falling demand.
“Now the contractors are hiring people after increase in work load,†he added.
Director Sales and Marketing Hinopak Motors Limited (HML) Mohammad Irfan Shaikh said that the company had actually planned to offload 500 employees (permanent, contractual and daily wage) out of total strength of 1,700 last year, but finally 78 people had been terminated in 2008-09.
“When sales reach desired level the auto industry will definitely open doors of employment,†he said, adding that the company is awaiting orders from the Punjab government for purchasing buses under Urban Transport Scheme (UTS).
Director Marketing Afzal Motors Private Limited Tahir Javed said that the company, which produced just 390 buses and trucks in the last fiscal year, had not removed its over 200 employees.
“The company has employed 40 people (20 on contractual and 20 on permanent basis) in the last three months after improvement in sales,†he added.
Tahir said the company planned to build 800 Daewoo trucks and buses and 900 Chinese JAC mini trucks in the current fiscal year.
Honda Civic sales were 261 in April 2009 rising to 338 in May and 404 units in June.
Toyota Corolla sales were 3,095 in April as compared to 2,606 in March while in May and June the sales were 3,095 and 3,039 units respectively.
Suzuki Cultus sales in April were 484 units, 671 in May and 777 units in June while Alto sales in April recorded at 341, rising to 571 in May and 668 units in June.
A total of 955 units of Mehran were sold in April while in May and June, the company sold 1,143 and 1,136 units.
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