SRI LANKA Colombo, garment sector in crisis: 50,000 workers laid off

There are 300 manufacturing companies that employ 350,000 workers and make garments for dozens of major international brands. Unions: Companies “also shut down entire facilities without paying even the paltry severance payments recommended by the government.” The industry accounts for more than 50% of the country’s total export earnings.

Colombo () – Some 50,000 workers in the clothing industry have lost their jobs due to the economic crisis. The country has about 300 manufacturing companies that employ 350,000 workers, who in turn support some 700,000 family members. These companies produce garments for dozens of major international brands based in the United States and Europe, such as Victoria’s Secret, Marks & Spencer, GAP, Tommy Hilfiger and VanHeusen.

Nilantha Kaluarachchi, an employee at Biyagama “A” EPZ, explained to that “several Sri Lankan garment factory owners not only cut jobs and wages, but closed entire facilities without paying even the paltry severance payments the government recommends. The basic monthly income of many workers battling hyperinflation fell to about 25 thousand rupees [69 dólares]”.

According to the Secretary of the Association of Manufacturers, Dhammika Fernando, “there is a reduction of workers in the factories and some companies downsized their operations, while companies with 400-500 workers open four days a week. The workers of these factories have to work 10 hours a day without overdoing it.

“At the last meeting of the National Labor Council it was decided to allow a five-day work week for the rest of the year, as long as no one can be employed on Saturdays. But the garment industry wants permission for employees to work on Saturdays,” added Fernando.

According to the joint secretary of the Union of Free Zones and General Services Employees, Anton Marcus, “employers expect a series of labor reforms that concern unions: increasing the number of overtime hours per month from 60 to 75 hours and extending shifts women’s night shifts from 10 to 15 days. This would prevent companies from hiring more workers, making the most of their workforce.”

“Some 50,000 garment workers were laid off, their wages wiped out overnight after a rapid currency devaluation, even though their work continues to enrich the country’s three big garment manufacturing conglomerates. and to its important clients, including major international brands,” Anton said. Most workers also do not receive the minimum “emergency allowance” of Rs 10,000 (US$27), intended to help them through the crisis, despite current basic wages being severely undervalued. Anton explained that all brands sourcing from Sri Lanka have been asked to guarantee monthly emergency subsidy payment to workers in their supply chain.

Katunayaka FTZ factory operations manager Dasun Amaranayake said, “Some factories give their employees extra help, such as a monthly bonus of Rs 500 ($1.37) or a food package if they never They’ve taken a day off.” With salary and benefit adjustments, workers receive between 20,000 and 23,500 rupees ($55-65) a month. However, this is an insufficient amount when you consider that, before the economic crisis, the wages of the employees barely reached the subsistence level and then they were worth between $120 and $175 per month.”

“Employees in the garment sector, mostly women, have migrated from their villages to support their families, and are the foundation of an industry that accounts for more than 50% of Sri Lanka’s total export earnings. However, suffered all the crises that have hit the country in recent years: during the Covid-19 pandemic, the income of this industry was considered too important to allow workers to isolate themselves, which led to massive epidemics in factories and in workers’ homes. In the first three months of the pandemic, garment industry workers lost about 40% of their wages. Meanwhile, the government is not interested in dialogue between social stakeholders,” Dasun said. .