PLY-WOOD INDUSTRY AND

CONDITION OF WORKERS

BY: DEEKSHA TRIPATHI

ROLL NUMBER: 1126
STREAM: B.A.LL.B. (Hons.)
SUBMITTED TO: Dr.S.C.ROY

FINAL DRAFT SUBMITTED FOR THE SUBJECT LABOUR

LAW-II

CHANAKYA NATIONAL LAW UNIVERSITY

PATNA
 INDEX

Serial Topic Page Number

Number
1 Introduction 4-5

2 Overview: plywood and industry 6-8

3 Health impact of the plywood 9-12

industry

4 Regulation of the Indian plywood 13-15

industry- most urgent requirement

5 Condition of the workers 16

6 Case Study 17

7 Conclusion and 19
suggestion
8 Bibliography 20
 ACKNOWLEDGEMENT

It's a fact that any research work prepared, compiled or formulated in isolation is inexplicable
to an extent. This research work, although prepared by the researcher, is a culmination of
efforts of a lot of people.

Firstly, I would like to thank our Teacher for giving such a topic to research which assisted
me in acquiring information as to the condition of workers in Plywood Industry. I would like
to thank him for his valuable suggestions towards the making of this project.

I cannot ignore the contributions made by my classmates and friends towards the completion
of this project work .And I would also like to express my gratitude towards the library staff of
my college who assisted me in acquiring the sources necessary for the compilation of my
project.

Thank You,

Deeksha Tripathi,

Chanakya National Law University

 INTRODUCTION
The history of plywood industry in India is old. It is more than 75 years that this industry was
started here on a very modest scale. It was in the year 1906-07 that plywood was imported in
India for the first time-valued at Rs.32 lacs. Imports rose steadily and by 1924-25 it were
worth Rs.90 lacs. Tea Industry in Assam, West Bengal and Kerala was steadily developing
and it was thought that plywood industry in the form of Tea Chests production mainly for
export should be developed. Accordingly two plywood factories were started in Assam in
1923-24 but their development was steady and slow and not phenomenal. These were the
pioneers and the resourcefulness and courage shown by them in the early stages of growth of
Plywood Industry was remarkable and the industry owes gratitude to these courageous
entrepreneurs.

After 1947-48, the industry resorted to diversification of its products and block boards, flush
doors, commercial plywood, decorative plywood, marine and aircraft plywoods, produced in
Indian factories came into the market which were second to none in the world in quality and
diversity of its products.

Industrial Licensing is governed by the Industries (Developmental and Regulation) Act, 1951
under which the wood based industry was covered. There was no restriction of putting up
plywood Mill upt o 1970. The only criteria was that the applicant was required to obtain an
Industrial License which was being considered by Ministry of Industry after consulting
various Ministries including Ministry of Environment & Forests. Forest Ministry was being
consulted for ascertaining sustainable raw material of Timber for a particular project; the
Wood based Industry was more or less in Medium and Large scale.

The Wood based Industry was under Compulsory Industrial Licensing from 1988 whether a
small scale unit or a Large/Medium unit, new undertaking or substantial expansion would
require Industrial Licence. During 1970 there was clear cut definition of Small Scale Sector
and units having an investment of less than 7.5 lakhs in Plant and Equipment were covered
under the definition of Small Scale Sector which would be registered with the respective
State Director of Industries. At that particular stage some of the units with such investment
got themselves transferred to small scale sectors.

Meanwhile there were modern technology and machinery equipped plywood units coming up
in different places in India like North Eastern Zone. In 1997 the Government of India totally
delicensed wood based industry as a result more than 2000 small-scale units coming up.

The potentialities of the industry can be judged from the many uses to which plywood can be
put. Apart from tea chests plywood marine and aircraft plywood there are specific demand for
the following articles from the consumers:-

1. Shuttering Plywood
 2. Packaging Plywood

3. Plywood drums

4. Flush doors

5. Commercial & Decorative Plywood

6. Block Boards

7. Molded Plywood furniture and chair seats

8. Laminated picking sticks for cotton and jute textile industry

9. Sliced decorative veneers of walnut, teak, rosewood etc.

10. Compregnated wood veneers required for heavy chemical industry and electrified
railways

OBJECTIVES

The objectives of the researcher are as follows:

To understand the meaning, concept and history Plywood Industries in India.
To study the condition of the workers in the Plywood Industries by examining case-
studies.

HYPOTHESIS
The hypothesis proposed by the researcher is that the condition of the workers in the Plywood
Industries is very poor and the workers face a lot of problem.

RESEARCH METHODOLOGY
The researcher has used doctrinal method of research. The researcher to examine better the
condition of the workers in plywood industries would visit two of such industries and try and
examine the wage conditions, the facilities, the work hours etc about the industries.
 OVERVIEW- PLYWOOD AND INDUSTRY

Plywood is a sheet material manufactured from thin layers or "plies" of wood veneer that are
glued together with adjacent layers having their wood grain rotated up to 90 degrees to one
another. It is anengineered wood from the family of manufactured boards which
includes medium-density fibreboard(MDF) and particle board (chipboard).

All plywoods bind resin and wood fibre sheets (cellulose cells are long, strong and thin) to
form composite. This alternation of the grain is called cross-graining and has several
important benefits: it reduces the tendency of wood to split when nailed at the edges; it
reduces expansion and shrinkage, providing improved dimensional stability; and it makes the
strength of the panel consistent across all directions. There are usually an odd number of
plies, so that the sheet is balancedthis reduces warping. Because plywood is bonded with
grains running against one another and with an odd number of composite parts, it is very hard
to bend it perpendicular to the grain direction of the surface ply.1

Smaller thinner plywoods and lower quality plywoods (see Average-quality plywood photo
below and right) may only have their plies (layers) arranged at right angles to each other,
though some better quality plywood products will by design have five plies in steps of 45
degrees (0, 45, 90, 135, and 180 degrees), giving strength in multiple axes.

The plywood industry has been hit by the slump in the real estate industry, which is a
significant source of demand for plywood. The industry is also having a hard time holding its
own against cheap imports from China.

The Indian plywood industry has estimated annual revenues of Rs 25,000-30,000 crore, and
is dominated by unorganised players.

SajjanBhajanka, president of the Federation of India Plywood and Panel Industry, said the
invasion of the Indian market by Chinese plywood products was a matter of concern,
especially for small and unorganised players. NareshTiwari, president of the North India
Plywood Manufacturer Association (NIPMA), endorsed this view.

Plywood manufacturers say that although this year has seen lower imports from China owing
to quality issues, they fear that once China starts flooding the Indian market with quality
1 http://gnu.inflibnet.ac.in:8080/jspui/bitstream/123456789/2643/1/Plywood%20Industry.pdf
products, the domestic industry especially the unorganised segment could be in for big
trouble.

Tiwari pointed out that in China the government supported wood-based and allied industries,
enabling them to flourish. However, in India, even though the wood-based industry
especially in Punjab and Haryana is located near raw material sources (wood), it is unable
to find its feet in the absence of support from the government.

NIPMA estimates the annual revenues of the northern regions plywood industry to be about
Rs 5,000 crore. Its growth rate, earlier eight to 10 per cent per year, has now come down to
five per cent, said Tiwari.

The slowdown in real estate, lack of support from the government, and the invasion of the
Indian market by Chinese products, Tiwari said, are stifling the growth of the industry.

A senior official of the Kolkata-based diversified group, Mayur Industries, had said in an
earlier interaction with Business Standard that the real estate slowdown had especially hurt
panel product manufacturers.

As against 40 per cent growth in the first two quarters of calendar year 2012, Mayur Plywood
has subsequently grown by 20-25 per cent, primarily owing to the slump in the real estate
sector, the official had said.

DevenderChawla, president of the Haryana Plywood Manufacturers Association, said labour

shortage was another problem the industry was grappling with.

Three plywood manufacturing units in Perumbavoor which approached the Supreme Court
seeking permission to regularise their operations have been asked to wait for the order in a
case pending before it on the pollution caused by plywood units.

The original case, filed by a resident of Vengolapanchayat, is to come up before the court
next month, according to sources associated with the case.

The three units were among more than 200 companies in the area which were found to have
violated norms in a report submitted by the Empowered Committee of the Supreme Court.
The committee had recommended measures including cancellation of permits and heavy fine
for illegal operation.

The manufacturers are understood to have approached the State government for regularising
the operation. But it would be a herculean task for the State as the case was pending before
the apex court, sources said.

The report was submitted in September last year after conducting spot inspections and public
hearing as directed by the Supreme Court in a special leave petition filed by T.K.Kurien, a
resident of Vengola. The committee had examined whether the plywood units in the
panchayat had obtained the clearances from authorities. The committee had observed that 277
wood-based industries in the gram panchayat within an area of 36.05 sq.km., having a
population of over 36,000.
Hundreds of people affected by pollution from wood-based units in the district took out a
march to the district collectorate on Tuesday. P.C.Cyriac, former civil servant and president of
Anti-Corruption Peoples Movement, inaugurated the march.

The march was organised by the Action Council for Environmental Protection as part of a
renewed agitation that the people plan to undertake to get the polluting wood-based units,
mostly manufacturing plywood, shifted from residential areas. Mr.Cyriac said an agreement
reached between the district administration and the action council last year, was yet to be
implemented. He demanded that the recommendations made by the Central Empowered
Committee on wood-based units in the district be implemented. The Action Council patron
and environmental activist, S.Sitaraman, alleged that the government was planning to amend
the prevailing Act on wetlands to protect the erring plywood units, many of which had been
set up in converted paddy fields, violating the clauses of the Act. The government was trying
to legitimise illegally converted paddy land under the guise of helping the farmer, he said.

Council chairman Varghese Pulluvazhy said the Central Empowered Committee appointed by
the Supreme Court had found out gross violation of norms by wood-based units in the
district.

The council had waged a prolonged struggle last year and had reached an agreement with the
authorities. The authorities were giving permission to new units in violation of all existing
rules, he SAID.
 HEALTH IMPACTS OF THE PLYWOOD
INDUSTRY
Health Impacts of Plywood Industry

Because of the chemicals used, industrial processes, mechanical and electrical machinery
used, there are many serious health impacts relating to the plywood industry. The impacts
may be classified as the follows:

Health impact on the workers in the industry

Health impacts on the community

It may be added that the same chemicals which harm local community will also harm animal
life in the area, be it domestic or native.

Health Impact on Workers

Formaldehyde: All plywood industries use formaldehyde as a component of the glue which
holds the wooden veneers together. Formaldehyde is mixed with phenol or urea and few
minor additives to form the glue. Mostly this mixing is done at the location and those who are
involved in the mixing process have acute exposure to the chemicals. In addition, once the
glue is formed it is sprayed by hi pressure nozzles onto the wooden veneer, where again
employees are exposed. The following are some of the known facts about formaldehyde;2

Key Facts: Formaledehyde

Formaldehyde is a colourless, flammable, strong-smelling chemical

When exposed to formaldehyde, some individuals may experience various short-term

effects. When formaldehyde is present in the air at levels exceeding 0.1 ppm, some
individuals may experience adverse effects such as watery eyes; burning sensations in the
eyes, nose, and throat; coughing; wheezing; nausea; and skin irritation. Some people are very
sensitive to formaldehyde, whereas others have no reaction to the same level of exposure

The International Agency for Research on Cancer (IARC) classifies formaldehyde as a

human carcinogen. In 2011, the National Toxicology Program, an interagency program of the
2 http://gnu.inflibnet.ac.in:8080/jspui/bitstream/123456789/2643/1/Plywood%20Industry.pdf
Department of Health and Human Services, named formaldehyde as a known human
carcinogen in its 12th Report on Carcinogens
Research studies of workers exposed to formaldehyde have suggested an association between
formaldehyde exposure and several cancers, including nasopharyngeal cancer and leukaemia.
So the workers in plywood factories have clear and persistent risk of cancer from
formaldehyde. In addition they may also experience various non cancerous effects such as
burning sensation of eyes, nose, throat, coughing, wheezing and nausea.

Particulates: Plywood industry produces significant quantities of wooden dust during the
veneering and finishing processes. Particles that are likely responsible for adverse health
effects because of their ability to reach the lower regions of the respiratory tract. The PM-10
standard includes particles with a diameter of 10 micrometers or less (0.0004 inches or one-
seventh the width of a human hair). EPA's health-based national air quality standard for PM-
10 is 50 g/m3 (measured as an annual mean) and 150 g/m3 (measured as a daily
concentration). The following are some of the known facts about the health impacts of
smaller particle sizes.

Key Facts: Particulate Matter less than 10 microns (PM10)

Major concerns for human health from exposure to PM-10 include: effects on breathing and
respiratory systems, damage to lung tissue, cancer, and premature death. The elderly,
children, and people with chronic lung disease, influenza, or asthma, are especially sensitive
to the effects of particulate matter. Acidic PM-10 can also damage human-made materials and
is a major cause of reduced visibility in many parts of the U.S. New scientific studies suggest
that fine particles (smaller than 2.5 micrometers in diameter) may cause serious adverse
health effects. As a result, EPA is considering setting a new standard for PM-2.5. In addition,
EPA is reviewing whether revisions to the current PM-10 standards are warranted.

Hydrocarbon Fumes and Dust: Many plywood industries have their own arrangement for
power generation or at least emergency power generation. This needs a generator or stands by
generator. Storage and use of fuel, mostly diesel or higher, cause release of hydrocarbon
fumes and particulates (partly burnt hydrocarbons). Hydrocarbon fumes have many adverse
environmental impacts. The following are some of the known adverse health impacts of
hydrocarbon fumes.3

Health Impacts of Diesel Fumes and Exhaust

As we breathe, the toxic gases and small particles of diesel exhaust are drawn into the lungs.
The microscopic particles in diesel exhaust are less than one-fifth the thickness of a human
hair and are small enough to penetrate deep into the lungs, where they contribute to a range of
health problems.

Diesel exhaust and many individual substances contained in it (including arsenic, benzene,
formaldehyde and nickel) have the potential to contribute to mutations in cells that can lead

3 http://ethesis.nitrkl.ac.in/6094/1/E-208.pdf
 to cancer. In fact, long-term exposure to diesel exhaust particles poses the highest cancer risk
of any toxic air contaminant evaluated by OEHHA. ARB estimates that about 70 percent of
the cancer risk that the average Californian faces from breathing toxic air pollutants stems
from diesel exhaust particles.

Exposure to diesel exhaust can have immediate health effects. Diesel exhaust can irritate the
eyes, nose, throat and lungs, and it can cause coughs, headaches, lightheadedness and nausea.
In studies with human volunteers, diesel exhaust particles made people with allergies more
susceptible to the materials to which they are allergic, such as dust and pollen. Exposure to
diesel exhaust also causes inflammation in the lungs, which may aggravate chronic
respiratory symptoms and increase the frequency or intensity of asthma attacks.

Diesel engines are a major source of fine-particle pollution. The elderly and people with
emphysema, asthma, and chronic heart and lung disease are especially sensitive to fine-
particle pollution. Numerous studies have linked elevated particle levels in the air to
increased hospital admissions, emergency room visits, asthma attacks and premature deaths
among those suffering from respiratory problems. Because children's lungs and respiratory
systems are still developing, they are also more susceptible than healthy adults to fine
particles. Exposure to fine particles is associated with increased frequency of childhood
illnesses and can also reduce lung function in children.

Like all fuel-burning equipment, diesel engines produce nitrogen oxides, a common air
pollutant in California. Nitrogen oxides can damage lung tissue, lower the body's resistance
to respiratory infection and worsen chronic lung diseases, such as asthma. They also react
with other pollutants in the atmosphere to form ozone, a major component of smog.

Health Impact from Noise: Typical ply wood industry has series of mechanical equipment
which all produce noise. The major ones include;

- Peeling machines

- Generators

- Nozzles for spraying

In addition, the regular transport of raw wood and products, their loading and unloading all
can cause noise pollution.

Noise has both short term and long term health impacts. When left unmanaged, noise
pollution can make people deaf. Some of the known health impacts of noise pollution is given
below.

Health impacts of Noise

When sound waves enter the outer ear, the vibrations impact the ear drum and are transmitted
to the middle and inner ear. In the middle ear three small bones called the malleus (or
hammer), the incus (or anvil), and the stapes (or stirrup) amplify and transmit the vibrations
generated by the sound to the inner ear. The inner ear contains a snail-like structure called the
cochlea which is filled with fluid and lined with cells with very fine hairs. These microscopic
hairs move with the vibrations and convert the sound waves into nerve impulsesthe result is
the sounds we hear.

Exposure to high levels of noise can cause permanent hearing loss. Neither surgery nor a
hearing aid can help correct this type of hearing loss. Short term exposure to loud noise can
also cause a temporary change in hearing (your ears may feel stuffed up) or a ringing in your
ears (tinnitus). These short-term problems may go away within a few minutes or hours after
leaving the noise. However, repeated exposures to loud noise can lead to permanent tinnitus
and/or hearing loss.

Loud noise can create physical and psychological stress, reduce productivity, interfere with
communication and concentration, and contribute to workplace accidents and injuries by
making it difficult to hear warning signals. The effects of noise induced hearing loss can be
profound, limiting your ability to hear high frequency sounds, understand speech, and
seriously impairing your ability to communicate.

Safety Issues with health implication for Workers

In addition to the above key health issues, plywood industry also have the conventional safety
issues with health implication for workers. The key issues are;

1. Mechanical safety (getting caught in rotating machines, laiths etc)

2. Electrical safety (risk for electrocution)
3. Slips and trips (falling down on cables, wires, wet floors)
4. Fall from height
5. Vehicle related (from vehicles, including fork lifts, manoeuvring at the factory premise)
6. Biological (fungal spores from the wood, pests, snakes etc)

It is important that all these issues are addressed adequately when dealing with health issues
in the plywood industry4

4 http://www.thehindu.com/news/cities/Kochi/safety-of-workers-at-plywood-units-in-
focus/article5982046.ece
REGULARISATION OF THE INDIAN PLYWOOD
INDUSTRY- MOST URGENT REQUIREMENT

The Current Chaos

The plywood industry, sadly, remains one of the most disorganised and unregulated industry
in India, irrespective of its ubiquitous material importance in every home and office. The
primary reason for this state of affairs has been the lack of
regulation/standardisation/uniformity. As a manufacturer, one can -

1) Use whatever quality of glue required. The veneer layers have to just be bonded, that's
all...

2) Use whatever quality of wood/veneer that one can obtain at least price, so that a quick
margin can be made. The plywood has to reach destination as a full sheet, that's the bottom
line...

3) Hire a cheaply paid struggling worker, who "has seen" how a resin is made, to make the
required resin to be used in the plywood.

4) Dip the sheet or pass it through a green coloured dangerously formulated mixture of
chromates, boron and copper, to obtain the "certifying" green appearance.

5) Care least for health, safety, environment, worker conditions, pollution, pressure vessel
norms... and much more.

Plywood Standards

There seems to be total disregard for even the basic standards that have to be maintained in
manufacturing plywood. The basic idea of creating a plywood, was to improve wood
properties in a sheet form, so that it could be used and designed better.

There maybe a few number of manufacturers maintaining the basic standards in plywood
manufacturing. But, does this mean that the others can go around producing whatever they
wish to? Can we not imagine and put a full stop to - the amount of wood resource being
wasted, formaldehyde emission generated, synthetic resin loss, and environmental impact -
the insensitive thriving of such plywood manufacturing units in a large scale?

I hear almost every manufacturer talking of "getting" ISI certification to their produce. What
kind of nonsense is this, my God? Manufacturers who do not even have a decently educated
staff, successfully obtaining ISI labels and Standards clearances. I have conclusive proof in
my possession of standards authorities failing one sample from a company, and passing the
same sample sent in another Company's identity. 5

Where are the authorities? What are they doing? What is going to happen to our consumers
who buy cheap and dangerous plywood materials from "guaranteeing" dealers and retailers?

Resins Standards

Typically, we have all heard of the following types of resins:

1) Interior: Urea Formaldehyde (UF) Resin & UF Resin with Moisture Resistance (MR)

2) Exterior: Boiling Water Resistant (BWR) - 3 BIS rated boiling cycles pass & Boiling
Water Proof (BWP) - 6 BIS rated boiling cycles pass

Indian market seems to have 2-hour boiling, 4-hour boiling, 6-hour boiling, 8-hour
boiling,12-hour boiling.........upto 72-hours continuous boiling. What a range to speak of? I
know that the non-Indian world will be stunned seeing this. I have had continuous calls
asking for x-hours boiling resin (Hehehe) because the dealers ask for it. Recently had a call
from a very famous IGBC (Indian Green Building Council) certified manufacturer for a 10 -
cooker whistle resistant resin. Anybody out there know how to make such a resin? What a
pathetic market situation we are in? I think "even God cannot save this country" [Hon. SC of
India, 2007]

Environmental Concerns

Indian plywood industry is very poorly placed in terms of concern for health and
environment.

Formaldehyde: As the world zeroes in on 100% E1 (< 8mg/100g of product - perforator

method of analysis) formaldehyde emission standards (if not E0/CARB Phase2 for now), I
would place the Indian average formaldehyde emission from plywood in the range between
25 - 75 mg/100g of product as per the EN120 perforator method of analysis.

Recently, in an Association meeting, there was a "suggestion" saying that the plywood
manufacturers must submit a representation asking the Government not to implement a policy
requiring E1 certification for the sale of plywood. How funny?

Chemicals: There is absolutely no sense of proportion in our use of chemicals such as

Ammonium Chloride, Liqour Ammonia, Chromates, Borates, Acids, Copper chemicals ....
and many more. Leaving the standards aside, do we not have even basic human sensitivity to

5 http://www.financialexpress.com/fe-columnist/plywood-manufacturing-holds-promise/73460/
imagine and decide that ruthless use of these chemicals must be avoided/minimised to least
necessary?

Standards Implementation

Lack of awareness among consumers is not an excuse for non-implementation. It needs to be,
in fact, the basic reason for IMMEDIATE implementation. Otherwise, we as an industry & its
authorities, are a source of mass disappointment and shame.6

Authorities like IPIRTI & BIS must begin the initiative to suggest to the Ministry of Forests
& Environment about the stringent implementation of fresh norms and policies across the
plywood, wood based panels manufacturing sector. We cannot blame Ministries for
everything. That is why we have designated authorities under Ministries. This should not be a
5-year plan as always...should be a single financial year plan...

1) Minimum formaldehyde emission certification needed must be E1

2) Every piece of plywood, wood based panel manufactured must pass and be certified for the
basic BIS strength parameters. Certification must be technical, not purchased certificates.

3) India must BAN the import and use of Forest wood - most importantly "Gurjan", which is
being foolishly used as a thin 0.2 - 0.3 mm face veneer due to the so-called "demand" by
dealers and retailers. Plywood must be made 100% plantation & non-forest.

4) Manufacturers using even a strip of forest wood (especially "Gurjan") must be stripped of
their FSC certifications, obtained suspiciously.

5) Random drawing of samples must be ensured on a frequent basis for all manufacturers.
Must be recommended for consumers too. Consumers who purchase panel products beyond a
minimum quantity must be able to send randomly drawn samples to BIS test centers for free.

Such active initiatives are imperative to the genuineness, quality consistency &
environmental consciousness of the wood based panel industry in India. It is hoped that
changes would be visible in the near future for the quality, health, and safety of consumers.7

CONDITION OF WORKERS
6 http://www.jstor.org/stable/42603673?seq=1#page_scan_tab_contents

7 http://www.jstor.org/stable/42603673?seq=1#page_scan_tab_contents
Lack of safety measures at plywood manufacturing units in Perumbavoor, many of which are
functioning without obtaining necessary permits, has come into focus after the death of four
workers in a unit there came to light. The accident happened a fortnight ago.The four lives
were lost at a unit making block boards, situated at Kandanthara.The deaths happened on
different days after the incident, with the fourth person dying on May 1.The accident
occurred at a processing section where chips of wood were mixed with adhesives and
processed at high temperatures. The processing machines reportedly spewed fireballs,
causing severe burns to four workers.8

Plywood, veneer and block boards are among products manufactured at wood-based units
clustered in and around Perumbavoor, a location known for abundant availability of timber.

Thousands of migrant workers belonging to Odisha, West Bengal, Assam and other
northeastern States are employed there.

The plywood manufacturing industry has been in focus after people started objecting to the
setting up of factories in residential areas as the units polluted water and air.

Agitations demanding shifting of the units from residential areas have been going on for quite
some time at various locations.

A case filed against the units in Vengolapanchayat had gone to the Supreme Court which
appointed a Central Empowered Committee to study the issue. The committee had found a
series of violations of norms by a majority of units in the panchayat.9

The CEC found that of the 277 units operating in Vengolapanchayat, 179 were functioning
without valid consent from Kerala Pollution Control Board; 121 were not registered under
The Indian Boilers Act, and under the Factories Act; 180 did not obtain permission from the
Fire and Safety departments.

The Supreme Court has referred the case back to the High Court and the plea is expected to
come up for hearing soon.

CASE STUDY
8 http://www.thehindu.com/news/cities/Kochi/safety-of-workers-at-plywood-units-in-
focus/article5982046.ece

9 http://www.financialexpress.com/fe-columnist/plywood-manufacturing-holds-promise/73460/
In blatant violation of the labour norms given by the Labour Department, the plywood
manufacturing units in Perumbavoor are operating in complete disregard to the condition of
the thousands of migrant labourers who work there.

The District Labour Office has been conducting inspections in the various plywood
factories in the Perumbavoor area during the past month. From what we have observed till
now, the majority of the workers employed in these factories are migrants from the northern
and north-eastern parts of the country.

Their working and living conditions are extremely distressing. Instead of the stipulated
working time of eight hours, these labourers are made to work for over 12 hours but are
paid only 8 hours wages.

Their working and living environments are also very unhygienic and they do not even have
basic sanitation facilities, said Vincent Alex, joint labour commissioner, Kochi. He added
that the labour office will be conducting various awareness camps in the coming months
beginning from February 2. Sources with the Labour Office stated that the office had, so
far, been in the dark regarding the condition of the migrant workers in Perumbavoor as they
had been denied access to the plywood factories by the factory owners.

The cases of jaundice are increasing in the region of Perumbavoor, especially in areas near
plywood factories due to the poor sanitation facilities provided to the large migrant
population living there. Last week, there was even a case of death due to jaundice in
Vengola Panchayat, said Dr Rameshan K R, who works at the Government Hospital in
Vengola. When a case is diagnosed among them, the migrant labourers usually leave for
their native place as they believe in their folk medicines more than allopathy, he added.
District Labour Officer (Enforcement), M K Mohanakumar said that the labour office will
be conducting medical camps to assist the migrant workers in Perumbavoor. Steps will be
taken to ensure that all of them are provided with identity cards which will enable them to
get benefits under the various welfare schemes meant for their betterment, he added. 10

10 http://www.hindustantimes.com/india/an-industry-glued-to-past/story-
sDybRVDmnnlsX243Dri4NN.html
 CONCLUSION AND SUGGESTIONS
One of the major challenges being faced by the plywood industry is the monopolisation of
certain critical inputs for plywood manufacturing. Face veneer, which provides support and
finishing to the plywood, is one such product. Prepared from gurgan and kuring woods
imported from Burma and Malaysia, it is a monopoly item.

"The peeling of this imported wood is also done outside Haryana - at Vishakhapatnam in
Andhra Pradesh, Gandhidham in Gujarat and Kolkata in West Bengal. This raises the cost of
the plywood," says JK Bihani of Galaxy Plywood Industries.

Bihani says there is also cartelisation of urea formaldehyde resin, an adhesive used to bond
core and face veneers in plywood manufacturing. "The annual requirement of urea
formaldehyde resin for our plywood cluster is enormous and we have no facility to
manufacture it in this cluster," he said.

Industry experts say that metal and glass pose the biggest challenge to the wood industry and
the manufacturers are not tuned to this.

Consumers are now keen on using a range of different materials. Thus, wood manufacturers-
merchants need to innovate quickly. The industry needs to understand and respond to
changing requirements to exist and remain competitive.

Deepak Sharma, principal consultant at Chandigarh-based Access Consultancy Services who

prepared a diagnostic study report (DSR) for the plywood cluster on behalf of the Haryana
government, said consumers were now aware of the emerging trends, tastes and fashion
prevalent throughout the world. Sharma said globalisation was posing a big challenge to
exports of timber products from India. Consumers worldwide expect high-quality material on
par with international standards, particularly with various certifications in place.

TL Satyaprakash, Haryana director of industries and commerce, said it had emerged during
interaction with plywood entrepreneurs that to remain competitive in the domestic and
international market, this cluster needed technology upgrade. He said quality of the products
and manufacturing processes needed to be focused upon.

"Only a handful of manufacturers could introduce technological advancement in their

production line. At present, there are no facilities in Yamunanagar to manufacture face
veneer," he said. "But, considering the demand and the potential of this industry, I feel the
market still remains largely untapped," he said.

Devender Chawla, president of the Haryana Plywood Manufacturing Association, said this
industry generated direct and indirect employment in 70:30 ratio. "Therefore, it is imperative
for us to adopt new technology to survive. And, the way to go is to make a collective effort to
facilitate setting up of a government-backed common facility centre (CFC)," Chawla said.
 BIBLIOGRAPHY
Books referred:

Problems and Prospects of Plywood Industry: A Case Study from Assam, By Badal
Kumar Sen
A Study on the Plywood Industry in Kerala, by John Thomas Chirayath
Industrial Relations and Labour Laws, 6th Edition, By S.C. Srivastava
Forest-based Associations in India: An Overview, by Sharmistha Bose

Websites Referred:

http://gnu.inflibnet.ac.in:8080/jspui/bitstream/123456789/2643/1/Plywood
%20Industry.pdf
http://gnu.inflibnet.ac.in:8080/jspui/bitstream/123456789/2643/1/Plywood
%20Industry.pdf
http://www.financialexpress.com/fe-columnist/plywood-manufacturing-holds-
promise/73460/
http://www.jstor.org/stable/42603673?seq=1#page_scan_tab_contents
http://www.hindustantimes.com/india/an-industry-glued-to-past/story-
sDybRVDmnnlsX243Dri4NN.html
http://plywoodplainfacts.blogspot.in/p/health-impacts-of-plywood-industry.html
http://www.thehindu.com/news/cities/Kochi/safety-of-workers-at-plywood-units-in-
focus/article5982046.ece
https://www.linkedin.com/pulse/regularisation-indian-plywood-industrymost-urgent-
hariharan
http://ethesis.nitrkl.ac.in/6094/1/E-208.pdf