Non-traditional Exports Act aids Peru textile sector: SNI

31 May '13

1 min read

The Peruvian Act 22342, titled Promotion of Non-traditional Exports, is an aid to the country’s textile industry and should remain unaltered, Luis Salazar Steiger, president of Peru’s National Society of Industries (SNI), has said.

The Non-traditional Exports Act permits companies to employ workers on the basis of short-term contracts. Because of its labour-intensive nature, the textile and garment industry of Peru is the most benefited by the law.

According to SNI records, there are 200 textile enterprises in Peru that are currently benefitting from the Non-traditional Exports Act and these firms would be affected if the Act is modified.

SNI president Steiger said the law has brought in tremendous development in the Peruvian textile sector and any changes to the law should be avoided as it can affect the growth rate of the country’s textile industry, leading to loss of jobs, as stated by rpp.com.pe.

The Peruvian textile sector employs around 411,000 workers, out of which about 78,000 workers are under short-term contracts, and these workers would become unemployed if the act is altered, Mr. Steiger said.

He added that the short-term contracts are laid down keeping in mind all labour rights, including social insurance, profit sharing and CTS.

Fibre2fashion News Desk - India

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