Manpower Crunch Jayendra Kachalia, President Dear friends, The pressing issue facing the automobile dealers today is the shortage of trained manpower. In the last issue, I mentioned that FADA had initiated a dialogue with the national chambers like ASSOCHAM and FICCI for FADA associating with some of the ITls, in order to upgrade their infrastructure and curriculum with a view to ensuring that candidates qualifying from these ITIs fit in the requirements of automobile dealerships and workshops. I also mentioned about FADA's proposal to partner with other institutions of repute to conduct courses for honing the skills of graduates and diploma holders and suitably equipping them to cater to the needs of automobile dealers. We are carrying this programme forward in all earnestness. Under the proposed programme, some of the reputed institutions, in association with and with the approval of FADA, will offer 3/6-month courses, such as, certificate/diploma courses for Service Supervisor, Spare Parts Supervisor and Sales Executive, with a focus on automobile dealership and workshop operations. The courses will comprise classroom coaching and on-the-job training and will be conducted under the strict control and supervision of FADA and in accordance with the curricula laid down by FADA. FADA will devise a system of accreditation of such institutions. The proposal also envisages short-term training programmes (1S-day programme) for the existing staff of dealerships in specific areas. Initiative like this entails a huge effort and investment on the part of FADA for creating an infrastructure and subsequently managing it. Magnitude of investment and effort notwithstanding, FADA wants to go ahead with the programme with a view to helping automobile dealers overcome manpower problems. As you will appreciate, such a programme can succeed only if members pitch in with their support and work together with a sense of commitment towards the success of the programme. The programme has been initiated for the common good of automobile dealer fraternity. It is, therefore, all the more important that automobile dealers come forward and make it a grand success in their own interest. FADA is contemplating to embark on a pilot covering the cities of Mumbai and Pune to gauge the response and success rate of the programme. Dealers are not required to make any investments as far as this programme is concerned. But, they need to come forward to provide on-the-job/practical training to the students enrolled under the programme. As for placement of candidates in the dealerships, automobile dealers have a choice to select the candidates before the start of training or after successful completion thereof. The students will be available for employment at dealerships on 'first come - first served' basis. Automobile dealers in Mumbai and Pune that are covered in the pilot, to begin with, would, surely, not wish to miss this opportunity. The USP of the programme is going to be the guaranteed employment for the candidates who successfully complete this course. It will, therefore, be the responsibility of all automobile dealers to make sure that the successful candidates get absorbed in their dealerships or workshops. I personally feel that in view of the shortage of trained manpower for dealership and workshop operations, all such candidates will easily get placed. However, having regard to the huge initial investment to be made for the launch of programme, automobile dealers may have to undertake to employ a minimum number of candidates on their successful completion of the course so that the money spent by FADA is worth it. To consider various issues connected with the launch of this programme and to get valuable inputs to make it really meaningful for the automobile dealers, a meeting of automobile dealers was convened at Mumbai recently. All members present at the meeting hailed the initiative taken by FADA in this direction. The programme is being fine-tuned based on valuable feedback and suggestions offered at the meeting. Another important issue of concern to automobile dealers is the VAT. What is discomforting is that the uniformity is lacking in the provisions and rates of VAT as applicable in various States. Lack of clarity in regard to various provisions compounds the problems. We availed this opportunity to invite Mr B C Khatua, Sales Tax Commissioner, Government of Maharashtra for an interaction with automobile dealers on this issue at the meeting in Mumbai. You will be happy to know that the Sales Tax Commissioner agreed to consider FADA's submissions in this regard. VAT is a new tax regime. Both the tax administration and the business community are confronted with a host of issues arising out of the new system. FADA has made a number of representations to the Empowered Committee of State Finance Ministers and other concerned authorities in some of the States on major issues arising out of VAT of concern to automobile dealers. I would urge automobile dealers at various places to organise themselves and to engage commercial tax authorities at the State level in regular interaction with a view to sensitising them on the problems being faced by automobile dealers. FADA office bearers would be happy to join the automobile dealers at such interactions at the regional, State and local levels. While on the subject, I find that there is a palpable excitement in the automobile market with the launch of a few new products of late. What we are going to see is the change in market dynamics and segmentation, particularly in the car and 2-wheeler markets. We are keeping our fingers crossed as to how the scenario shapes up in the near future and in the long run for industry, retail trade and other stakeholders. However, we are sure that the customers are going to have the field day with a lot of choices and competitive prices. This, hopefully, will eventually lead to expansion in the market size, which portends well for all of us. I look forward to your suggestions and inputs aimed at further strengthening the activities of FADA and promoting the retail automobile market. With best wishes, Yours sincerely, Jayendra Kachalia