Acting Minister of Labour, Mahinda Jayasinghe, says they expect to engage in a discussion with various stakeholders today over the closure of the NEXT garment factory in Katunayake’s Free Trade Zone, which has left over 1,400 workers unemployed.
Addressing the Parliament yesterday, Mahinda Jayasinghe said it is expected to engage in a discussion with the factory’s administration, trade unions, and representatives of the Board of Investment (BOI) on the matter.
“2825 employees are working in four units of the company. They have made a decision under which 1416 employees will lose their jobs. However, 1409 employees will retain their jobs,” the acting minister said.
Mahinda Jayasinghe further said that the Labour Department must be informed prior to a factory closing down and that the NEXT garment factory had not informed the department of their decision until Tuesday (20 May).
“Since being informed, the Labour Ministry and Labour Department promptly started looking into the matter. We intend to meet with the company’s administration, trade unions, and the BOI for further discussions on the matter,” he added.
It was reported yesterday that the NEXT garment factory in Katunayake’s Free Trade Zone has announced its decision to close its factory, resulting in over 1,400 workers becoming unemployed.
Employees said they were informed of the sudden closure via a WhatsApp message on Monday night that the factory would cease operations, with immediate effect.
Issuing a statement, the factory, which had operated for nearly 40 years, cited rising operational costs and continued financial losses as reasons for the decision, while also offering a severance package, including two months’ salary. (Newswire)