Ahmedabad: The diamond staff of Surat have threatened to go on an indefinite strike from March 30 if their calls for usually are not met, together with wage hike and better worth.
Round eight lakh diamond staff are employed in Surat, the hub of India’s gem and jewellery trade. (File Photograph)
The looming strike marks the height of months of rising tensions in an trade that polishes 80% of the world’s diamonds however is now grappling with its worst disaster since 2008.
“We will take out a rally in Katargam area of Surat on Sunday before going on an indefinite strike if the government does not meet our demands by then. We expect at least 1.5 to 2 lakh workers to join us in the strike,” stated Bhavesh Tank, vice-president of Diamond Staff Union Gujarat (DWUG) which has given the strike name.
Round eight lakh diamond staff are employed in Surat, the hub of India’s gem and jewellery trade, which performs an important function within the world diamond commerce. Over the previous yr, polished diamond costs have declined by 15-20% because of weakening demand in key markets just like the U.S. and China, including to the challenges confronted by the sector.
The Russia-Ukraine warfare has impacted Surat’s diamond trade within the final three years, as 33% of its diamonds come from Russia, both immediately or by way of different sanctioned international locations. U.S. sanctions ban the import of polished diamonds created from Russian tough stones above sure carat weights, no matter the place they’re processed, including to the trade’s challenges.
The employees’ unions had earlier submitted an in depth enchantment to the state authorities by way of the Surat Collector, urging rapid motion.
Their calls for embody a big wage improve tied to inflation, increased diamond costs to maintain the trade, and the creation of a welfare board for artisans. They’ve additionally referred to as for monetary help to cowl training charges, housing prices, and lease, together with a assist scheme for unemployed staff and households of those that have died by suicide because of monetary misery. DWUG’ Tank claims that greater than 60 diamond staff have died by suicide within the final one yr as a result of downturn within the trade.
The employees union stated in an announcement that after negotiations with the state authorities within the first half of this month by numerous representatives of the diamond trade, the federal government fashioned a high-level committee and guaranteed them an motion plan inside two days and a call inside 15 days.
“However, with the deadline approaching and no official announcement, frustration is mounting. We do not want to strike, but the government’s delay is leaving us with no choice,” stated the union chief.
India’s polished diamond exports fell 12% between April 2023 and February 2024 in comparison with the identical interval the earlier yr, in line with the Gem & Jewelry Export Promotion Council. Preliminary knowledge for the present fiscal yr exhibits no restoration, with January 2025 shipments down one other 15% year-over-year.