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Leading textile firm Tuntex ceases operations
09 Sep '11
2 min read
Swaziland's leading textile firm Tuntex has ceased its operations rendering around 1,000 workers unemployed.
The factory at Matsapha, set up in October 1997 when the global textile market was booming, has now handed over letters to the last batch of 590 workers notifying them of their discharge from duties.
The Taiwanese company had set up two factories in Swaziland, but was required to shutdown one of them a few years back. The second factory is now operating with a bare minimum staff of 90 people, who were discharged along with 500 others, but have been re-employed on contractual or temporary basis to support winding up operations at the company.
The re-employed workers are presently working to execute a pending order from Dicks which is likely to conclude soon. However, the firm looks forward to retaining these employees if it receives new orders in the mean time.
Global economic slowdown joined by poor business administration, compelled the firm to cease business as there was a considerable fall in orders. The company was hit hard as it lost all its key orders owing to global slump.
Globally recognised European brands like Bonton, Adidas and Dicks were all included in the clientele list of the firm. But, when its major clients stopped placing bulk orders, the firm was required to reassess its business model resulting in the reduction of the workforce since beginning of the current year.
Initially, Tuntex started retrenching temporary staff as it expected to rehire them when the conditions get better. Unfortunately, things did not improve and the company has now started distributing severance allowances to its retrenched workers.
The factory at Matsapha, set up in October 1997 when the global textile market was booming, has now handed over letters to the last batch of 590 workers notifying them of their discharge from duties.
The Taiwanese company had set up two factories in Swaziland, but was required to shutdown one of them a few years back. The second factory is now operating with a bare minimum staff of 90 people, who were discharged along with 500 others, but have been re-employed on contractual or temporary basis to support winding up operations at the company.
The re-employed workers are presently working to execute a pending order from Dicks which is likely to conclude soon. However, the firm looks forward to retaining these employees if it receives new orders in the mean time.
Global economic slowdown joined by poor business administration, compelled the firm to cease business as there was a considerable fall in orders. The company was hit hard as it lost all its key orders owing to global slump.
Globally recognised European brands like Bonton, Adidas and Dicks were all included in the clientele list of the firm. But, when its major clients stopped placing bulk orders, the firm was required to reassess its business model resulting in the reduction of the workforce since beginning of the current year.
Initially, Tuntex started retrenching temporary staff as it expected to rehire them when the conditions get better. Unfortunately, things did not improve and the company has now started distributing severance allowances to its retrenched workers.
Fibre2fashion News Desk - India
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