The management of the Sevanagala Sugar Factory has temporarily shut down the facility until further notice, citing disruptions to production linked to ongoing worker unrest and trade union action.
In a statement issued on August 29, the Chairman of the Sevanagala Sugar Company said production had been disrupted on several occasions in recent weeks due to unrest among employees.
According to the Chairman, although employees reported for duty from August 25, production did not resume properly, affecting the factory’s operations.
Attempts to restart production during the public holidays on August 26 and 27 were also unsuccessful, while production had still not commenced by 10 a.m. on August 28.
The Chairman said the management subsequently decided to close the factory until further notice to prevent further financial losses from paying salaries and overtime allowances while no production was taking place.
The company also alleged that essential operations had been obstructed during the closure and that trucks arriving to transport sugar for sale had faced disruptions, affecting the company’s revenue-generating activities.
Meanwhile, the management said it was working to address longstanding issues related to staffing and the salary structure through a formal workforce assessment and a new salary framework.
The company said discussions were underway with the Salaries Commission to implement the proposed changes without reducing the salary of any employee.
According to the Chairman, the Department of Labour has also informed the relevant parties of the legal position concerning the ongoing trade union action.
The Chairman warned that the factory is directly linked to the livelihoods of sugarcane farmers in the Monaragala District as well as the employment of a large number of workers.
Employees have been urged to refrain from disruptive action, return to work immediately and cooperate in resolving outstanding issues legally through discussions. (Newswire)