Surya Nepal shuts down garment factory
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BIRATNAGAR, AUG 17 - Surya Nepal Private Limited (SNPL), one of the country's leading joint venture companies, shut down its garment unit permanently on Wednesday.
With its garment factory in Biratnagar being forced to close for two months due to labour unrest and cancellation of orders by importers, SNPL decided to shut down the garment factory, the largest in the country.
SNPL had closed its garment unit in Biratnagar from June 15 citing insecurity following violent protests by the workers. The prolonged labour problem, according to the company management, forced the company to permanently close the garment unit.
“We had delivery orders for six months from importers in India and third countries," said Ravi KC, SNPL's corporate vice president. "However, we were forced to cancel the orders as our production was disrupted and it compelled us to close down the factory.” According to KC, there was no environment to resume productions although the management had held a series of dialogues with various trade unions.
Following the decision to shut down permanently, the management has started paying off its workers and staff from Wednesday. The company has decided to pay their salaries till June 14.
Although minor problems had been plaguing SNPL's garment unit since its establishment, relations between management and workers worsened when the factory workers locked up 42 officials of the management on June 14 with the backing of various trade unions. The management staff were released with the help of the police the next day.
The workers had demanded wages for the six days of a strike that took place in mid-April. The SNPL management had refused to provide wages under the "no work no pay" provision. The workers said they were present at the factory during the strike, but were not allowed to work. The situation turned violent after the workers prevented the police from entering the factory premises.
Posted on: 2011-08-17 07:58
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