Deputy Labour Minister Mahinda Jayasinghe told Parliament today that the management of the closed Katunayake apparel factory has pledged to help affected employees secure new jobs, primarily in nearby factories.
He said that while 1,416 workers are expected to lose their jobs, 1,900 job offers have already been received, with the intervention of the NEXT apparel management.
The factory management has also agreed to provide compensation beyond the legal requirement under the Termination of Employment of Workmen Act, the Deputy Minister said.
Employees with less than one year of service will receive two months’ salary, those with one to five years will get three months, and others will be compensated based on their length of service, the Deputy Minister revealed.
Jayasinghe added that the decision to close the factory was a business decision made by the management and was not influenced by the government or the factory’s employees. “According to the management, from 2019 to 2025 the factory incurred losses amounting to nearly USD 10 million,” he said.
The Deputy Minister said, further discussions will be held with the factory management, the BOI and employees. (Newswire)