92% of the ceramic workers in Gujarat were not given provident fund (PF) benefits, 93% do not get ESIC benefits

A study by the Vadodara-based People's Training and Research Centre (PTRC) found that 92% of the ceramic workers in Gujarat were not given provident fund (PF) benefits, 93% do not get ESIC benefits at all and 90% are not even given payslips.

Six decades after The Employees' State Insurance (ESI) Act was notified, thousands of workers in Morbi, the world's largest ceramics manufacturing hub, are still not given its mandatory benefits, reports 'Times of India'.

The study, titled "Laws in Captivity", covered 2,000 workers — 1,776 men and 224 women. Of these, 879 (44%) were local workers and 1,121 (56%) were migrants.

These 2,000 workers represented 290 industrial units, including 1,729 employed by 246 ceramic units, 156 working at 38 non-ceramic manufacturing units and 115 engaged by six service sector units.

"This is perhaps the first systematic study on the implementation of labour laws for social security in Morbi. The ESI Act was notified in Morbi in 1967, bringing most areas under ESI coverage. 

Yet, 58 years later, industrial units are not implementing the ESI Act, and the govt is not enforcing it. With no strong workers' organizations, enforcement remains weak," said Jagdish Patel, director of PTRC, a voluntary organization working on occupational health and safety.

Trump's tariffs hit ceramic industry:

American buyers have pulled back nearly all the orders since the US tariff announcements.

Traders say buyers have stopped orders, exports are down, and the bigger effects are still to come.

This is for a company that ranks among India’s top five ceramic exporters to the US.

The US is among the top three markets for the Indian ceramic industry and one that has helped build this area into an export hub over the past two decades. 

The Morbi cluster exports around ₹1,200-1,500 crore worth of ceramics to the US annually. It produces 80% of India’s ceramics, feeding a global appetite across 150 countries, reports 'Hindustan Times'.

But the tariffs that came into effect last month precipitated a crisis. Kundaria is already sketching new trade maps, hoping to pivot to Europe, West Asia, and East Asia. “Factories will function but they will have to change markets,” he said.

It’s not easy. New distribution networks must be built. Product specifications need adjustment for different regional standards. Years of relationship-building in the US must now be replicated across continents. 

It takes time, and money, all the while paying hundreds of employees.