Closure of Sinotex - Factory at Katnayaka - FTZ

Thousands Lost Jobs due to Closure of Factory
What Can We Learn?

Uncertainty about Future

On the 12th of January six young workers of the Synotex factory came to SK centre to discuss the uncertainties they have about their future in the workplace. Among the six young men who were at the meeting, two were married. One was from Moneragala and the other Matara. Others were from Puttalam, Kurunegala, and Kandy. Everyone was from far away migrated from very rural areas.

They had a suspicion and fear that their workplace would be soon closed down. The reasons were that they had lost their overtime on which they depended much for their survival. The other reason was that they were given quite unexpectedly a 10 days of holiday. That disturbed them as to whether the factory would be found sealed and closed when they return from their homes.

Coincidentally, a group of drivers from a travel agency arrived at our centre to discuss with us their problems. Their travel agency provides services to the Cinotex and during the discussion it was mentioned that Sinotex factory has being closed.

That evening Sugath of Sramabimani tried to get in touch with at least a few workers who were then in their homes to inform them of the developments and called them to come to Katunayaka on the 18th Sunday.

On the 15th January notice appeared in the daily papers that the factory has being closed. The reasons given by the management were lack of export orders from foreign market for last nine months particularly from the US due to the economic crisis there.

Four workers met on the 18th Sunday evening. Sramabimani got down a legal adviser on labour matters for the meeting. With his guidance the workers discussed the various aspects of the issue.

Some of the workers have by then received letters from the management that all their dues will be given and they have been informed to be present at the factory to collect their dues.
On several earlier instances, the factories were closed down without giving any of the dues to the workers or respecting any of their rights.

Unjust Procedure

• However the workers came to the understanding that the procedure followed as regards the closure of Sinotex is not regular and cannot be justified for the following reasons.
  
• For instance the management has been contemplating over its future plans for over a period of 9 months. But the workers were given only 4-5 days to leave voluntarily. At a time when finding an alternative job is not at all easy in the present context, the management is very unjust in giving a notice of only 4-5 days to leave their jobs. Thus, the management has knowingly violated the right for security of employment.
  
• Another instance of violation of labour is that the factory was closed down without prior permission from the labour commissioner. In fact at the time of the closure the management has only forwarded an application to the commissioner seeking his permission for closure.
• Since the management knew very well that the workers come from families which are under immense economic hardships and will be very willing to take home a few thousands of rupees and hence will not dare to challenge the procedure adopted by the management even if it is unjust. Also, the management very cleverly by giving a long vacation manipulated workers behavior preventing any them from organizing themselves over the issue.
• Thus the worers being unorganized and without power silently and voluntarily applied to leave their jobs. Thus everything ended last week without any resistance.
• Neither do the workers have freedom of association. What they have as Employees’ Council does not function in the interests of the workers but of the management. Such an organization would not take any measure to educate the rights of the workers.
  

Impact of Closure.

• In this instance altogether 2347 young workers lost their jobs. The workers believe that several more factories are to be closed down. What would be then the future of these young men and women·
• They are now in a real dilemma. On the one hand, the hopes that the young workers had about their future, when they arrived here are now shattered. On the other hand there is no economic programme available in the country side to absorb such a large number of young people and provide them with means of earning a living.
• The only available option for young men and women is joining the military. The women can migrate to the middle-east as house maids. Yet it is a known fact that there are hundreds of women already languishing in jails or stranded subjected to various abuses as slaves in the middle-east and others victimized even before leaving the country and being cheated by the man power agencies.
• What is worst is that there is no authority with whom can they can discuss this problem of their uncertain future with a hope of seeking a solution. There is no one who is responsible for their welfare. On two occasions boarding houses of hundreds of workers went under water during floods. No one with authority came there to provide relief.
• If the management comes to know of anyone trying to form a union his/her job will be at stake. Nor do these young workers have prior experience in trade union activities as they are just out of school. Therefore in such a climate, slavery will continue.
  
  On the one hand, the closure of factories in Sri Lanka it is said is due to two major factors, namely a financial crisis in the US on the one hand and the GSP+ issue according to which the European Union has laid down the human rights record as a precondition to open its market for garments from Sri Lanka.