The company called its workers to collect the pay for the period they worked in June. Company officials said they will first settle the outstanding salary to the staff and then move to lay them off. The company decided to permanently shut down its operation on Tuesday amid long-running labor problems. [break]
Workers, meanwhile, said the company management has not informed them about the shut-down decision as yet. "We are here because the officials called us to collect our salary for June. The management has not informed us anything about shutting down the factory," said Bina Paudel, president of All Nepal Trade Union Federation (ANTUF), Garment and Textile Employment Unit.
Corporate Vice-President of Surya Nepal Ravi KC said he is in Birtanagar to complete the payment of employees till June and to start the procedure for pay-off.
Surya Nepal has been suffering persistently from labor unrest ever since it came into operation. The situation worsened after the workers shut the factory for eight days from March 25, demanding a pay-hike.
The company reached the decision of shutting down the unit after it was closed for two months, which caused the company to lose international orders. The company was exporting 85 percent of its production to countries like India, US, Canada and the European countries. Officials said closure of production for months caused the company irreparable losses, forcing them to take the decision of shutting down the production facility.
"We have no option but to close after our orders have all been cancelled," KC told Republica.
Other officials of Surya Nepal said the company suffered a sharp drop in buyers confidence and as the readymade garment market is already sensitive, they said it would be very difficult for the company to regain the trust of the buyers.
Established in 2004 with an investment of Rs 700 million, the company was producing popular international brands like John Players and Springwood. The industry was directly employing more than 700 workers, of which majority were women. Likewise, it was providing employment to other 1,400 workers mainly by contracting out its production orders.
Meanwhile, the trade unions in the factory staged a protest program, saying that the management cannot shut down the industry unilaterally. "The management cannot shut down the factory illegally. If it is to shut down, it must comply with the Labor Act," said Tej Lal Karna, member of ANTUF.
Following the protest program, the management said it was ready to hold talks with the trade union on Thursday.
Related story
Surya Nepal declared highest tax-paying company of the year (w...
