NEXT workers asked to resign, TUs allege
Trade unions allege that the state apparatus is hand in glove with the employer’s reason for which workers have been asked to resign citing high production costs at the NEXT factory in Katunayake prior to obtaining permission from the Labour Commissioner.
“We have entered a 3-year collective agreement with the NEXT factory so they are obliged to talk to us before taking such a decision,” FTZ and General Services General Secretary Anton Marcus told The Sunday Times Business.
If the cost of production is high the management should have addressed the matter by approaching the government in this regard, he said.
He noted that workers have been asked to resign while at the same time the factory is submitting the application to the Labour Department on closing operations. Mr. Marcus queried how the factory can remove workers from their jobs without obtaining prior permission.
He noted that only a few have signed this resignation letter issued by the factory.
Mr. Marcus said they had met with the Deputy Minister of Labour and the Commissioner General of Labour and found that the company had on May 20 applied for permission to close the operations at the Katunayake FTZ and have only given a list of the workers. A meeting with the authorities for the trade unions have also not yet taken place although promised in order to discuss this issue.
The Labour Commissioner for the Termination of Workers stated that the NEXT factory had only submitted a list of workers and had not submitted a formal application.
Workers at the factory have been asked to come to the Board of Investment auditorium to submit their letters of resignation and obtain the compensation provided by the factory.
Mr. Marcus noted that a whatsapp message has also been forwarded to workers not to approach the Labour Commissioner failing which they would not be given the compensation promised by the factory.
When the company was moving out factories initially they had said it was normal and there was nothing to worry.
According to information obtained it was found that the NEXT factory had plans to simply shutdown only the cutting section of the factory. But later they went ahead and closed down the entire Katunayake operation.
Mr. Marcus feared a similar situation might occur in other factories after July 9 following the lapse of the 90 day pause on US tariffs.
Joint Apparel Association Forum Spokesman Yohan Lawrence said that this is a wakeup call to all others.
He noted that Sri Lanka needs to retain its competitive edge else they will lose their business within the country and factories might even consider moving to other countries.
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