NEXT garment plant closes laying off without notice more than 1,400 workers
On Tuesday the company informed its employees via WhatsApp, shocking workers and unions. A worker told AsiaNews that, “compensation will help us for a few days, but what about after that?” The Ministry of Labour was not informed until the last moment. The “Company has threatened workers against requesting an inquiry,” reports the Dabindu Collective.
Colombo (AsiaNews) – The NEXT apparel factory, located in the Katunayake free trade zone (FTZ), Western Province, has abruptly stopped operations, without any notice to workers, shocking both employees and unions.
NEXT Manufacturing, a factory owned by a British group, said it was closing a plant in the Katunayake FTZ due to high operating costs, while two other connected plants will continue to operate with reduced staff.
According to several employees who spoke to AsiaNews, the management’s drastic decision, coming without warning, is extremely unfair after 40 years of activity.
They explained that NEXT, a leading global brand, makes children's clothing, which it exports to the UK.
The emotional and economic toll is huge. For one worker, “this compensation will help us for a few days, but what about after that? We have children to raise, house and room rental to pay, look after other matters in families, and no time to find another job soon."
The employees who finished work on Monday, 19 May, were getting ready to go to work the next day the same evening, as usual, but, around 8 pm, they received a message from the company via WhatsApp announcing the total closure and sealing of the plant.
The message noted that the plant employed 2,825 workers, and that 1,416 would lose their job as a result of the decision. The company also said that only 1,409 employees working in other units of the company would be guaranteed jobs.
“This has been a very difficult decision for the Company and has been taken after exploring all alternative options,” said director David Reay in the statement sent to employees.
Ostensibly, the reason for the shutdown is high operating costs at the Katunayake plant.
"For some years now, the plant has been unprofitable, and despite our considerable efforts to rectify the situation, we have been unable to make the factory economically viable. Recently, it has become clear that there is no prospect of this changing,” the company statement reads.
The latter does not mention what costs contributed to the closure, but according to industry analysts, one of the highest is labour. The statement goes on to say: “We would like to reassure our remaining colleagues that no further redundancies in Sri Lanka are planned or foreseen by NEXT Manufacturing.
Thus, if labour costs are too high, no other investor would be able to take over and manage such a company, to compete with other countries. Closure was considered the only solution.
NEXT said it will pay compensation of up to 2.5 million rupees (US$ 8,400) to each laid off worker. The embellishment and product development plants, also located in the Katunayake Free Trade Zone, will remain operational, but with a reduced number of employees.
NEXT’s other production activities in Andigama and Nawgaththegama will also continue to operate as usual.
Sri Lanka’s acting Minister of Labour, Mahinda Jayasinghe, said that a discussion with various stakeholders is expected following the closure of the NEXT garment factory, which has left more than 1,400 workers jobless.
Addressing parliament, Jayasinghe said he plans to discuss the situation with management, trade unions and representatives of the Board of Investment (BOI).
“The Labour Department must be informed prior to a factory closing down, and the NEXT garment factory had not informed the department of their decision until Tuesday, 20 May," the acting minister said.
The Dabindu Collective, a workers' rights group in the FTZ, told AsiaNews that NEXT threatened workers to force them not to request an inquiry, saying that it would withhold the severance pay.
"This blatantly violates the workers' right to legal redress,” said Chamila Thusshari, executive director of the Dabindu Collective in Katunayake, speaking to AsiaNews.
The situation “emphasises the broader crisis Sri Lanka's apparel industry faces. Growing instability in the global supply chain created by wealthier powers of the Global North pushes local factories to scale down at the cost of workers' lives and rights.”
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19/11/2020 14:45
24/01/2007
