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Surya Nepal to close down major garment unit
Aug '11
Citing continued labour strife, Surya Nepal, a subsidiary of India-based ITC Ltd, has resolved to permanently cease operations of its readymade garment manufacturing unit.

Besides the 650 workers directly employed in the unit who are now facing redundancy, the decision will even affect an additional 1,400 workers who are employed with other units that manufacture for Surya Nepal.

Surya Nepal was set up in 2004 with a primary investment of about Rs. 300 million. Similar to all other production facilities in Nepal, the company remained confronted with labour issues since its very inception. However, the conditions deteriorated when the workers closed down the unit for eight consecutive days since March 25 this year, demanding a pay hike.

Subsequently, the two parties came to a consensus over the matter. But, situations again worsened when the workers raised a demand for pay even for the period when they shut the unit and allowed no production to take place.

The management stated that no payment would be made to the workers for strike period, adhering to the concept of ´no work, no pay´. When the labour strike turned violent, Surya Nepal ceased production at the factory on June 15.

Fibre2fashion News Desk - India

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