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Tamil Nadu's open end yarn mills stop production
Feb '16
The indefinite strike by powerloom job working units in Tamil Nadu's Tirupur and Coimbatore districts has finally hit the open end mills (OEMs) which supply yarn to these units.

These units stopped production from Monday, seeking an immediate solution to the problem that has been festering for almost two weeks.

Around 300 OEMs supply yarn to powerloom units which used to produce about 1.2 crore metres of fabrics collectively in a day before they launched the indefinite strike on January 28.

Since these units went on strike, OEMs have found themselves saddled with unlifted stock of yarns worth Rs 100 crore, OEM association sources said.

The mills produce 10 lakh kgs of yarn worth Rs 10 crore everyday and the stocks are now piling up in all the units, they said. The production stoppage is estimated to affect nearly two lakh workers in the region.

Talks to end the strike in the powerloom job working units have failed so far. The powerloom job working units had gone on indefinite strike alleging that manufacturers have stopped paying them the increased wages of 27 per cent, as agreed in 2014, which had put them to a lot of hardship. (SH)

Fibre2Fashion News Desk – India

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