By James Mario Ajero
The sudden move of a United Kingdom-based garment manufacturer to close one of its production plants in Sri Lanka jeopardises the island’s bid for economic recovery, according to labour activists, who stated that the decision was a violation of Sri Lankan law.
“Cut and run”
As Sri Lankan workers grapple with the abrupt loss of job opportunities, labour rights lawyer Swasthika Arulingam said that Next Manufacturing’s closure could set a dangerous precedent in the market.
Though third-world countries are known for their cheap labor that international companies take advantage of to slash costs, Arulingam said that this cut-and-run tactic could become a norm among companies.
“This same pattern could be followed by other companies and other factories,” said Arulingam, stating that companies hold an unfavourable advantage over their third-world hosts since they can close operations anytime once the business environment becomes disadvantageous to them, South China Morning Post reported.
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Unfair labor practices
According to Chamila Thushari, an officer of a local group advocating for the rights of apparel workers, many Sri Lankan employees were not given consent to resign ahead of the closure.
The employees, however, were asked to sign forms regarding a voluntary retirement scheme with no specified timeframe for how long the settlement would be on hold.
“Next has informed the workers that 36 percent of the settlement would be initially on hold for tax purposes,” said Thushari.
Apparel as the island’s lifeline
The island’s exports heavily rely on the apparel sector with about 15 percent of Sri Lanka’s industrial workforce employed in garment factories. In total, Sri Lankan-made apparel had a 42 percent share of the island’s export earnings last year.
Thushari also claimed that Sri Lankan women are uniquely affected by the situation, especially since many have been employed in the plant for decades.
“This is a serious problem. They live paycheck to paycheck. And age makes it difficult for some of the older women to find jobs,” said Thushari.
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Newsjustnews writers 
Simon Wilkes