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Labour unrest & power crunch takes toll on RMG units
17
Jul '10
Labour unrest and energy crunch has forced garment factory owners to sell out around 13 units within 15 months till March, while, many others are negotiating with oversees business people for factory sell-outs. The factories which have been sold out during this period were SQ Crystal Celsius, Shanta Garment, Ajax Sweater and Shahriyar Fabrics.

A number of issues such as dwindling profit, output scarce following acute gas and power crisis and frequent labour unrest have caused sell-outs for factories. The labour unrest in sweater factories is due to complicated payment system, which is based on the number of pieces workers manufacture. More the number of pieces, higher will be their earning.

Therefore, many business persons have skipped ideas of expansion in sweater division. The industry insiders said that, it is difficult to manage workers in a labour intensive garment factory.

An Ashulia-based complete export-oriented garment factory, 'Shahriyar Fabric Industries Ltd' had been sold to a Canadian T-shirt giant Gildan Activewear Inc for $15 million in March.

Fibre2Fashion News Desk - India

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