Surya Nepal Pays Compensation To Garment Workers
In a move to prepare the ground for launching a new business venture, the management of Surya Nepal - a subsidiary of ITC, India - has distributed around Rs 30 million to the workers in lay-off benefits after the management decided to close down the garment factory in Biratnagar on August 17.
After receiving compensation from the management, the workers ended their month long relay strike on Tuesday.
The management had cited prolonged labor unrest and slowing down of demand from importers as the reasons for closing the business.
According to the company officials, the management has provided Rs 29,800 to each worker.
Surya Nepal paid compensation as per the agreement that the tripartite meeting between Surya Nepal management, trade union officials and local industrialists forged on the day. As per the agreement, workers cannot obstruct future ventures of Surya Nepal.
The management has also promised to provide employment to its laid-off workers if it resumes operation of its garment unit. It has also agreed to give first priority to the laid-off workers in its future ventures.
"With the distribution of compensation amount, we have tried to help the workers who worked for the garment factory at a time when the major festivals are approaching," said Ravi KC, corporate vice-president of Surya Nepal.
However, the management also said that payment of the compensation is a step to create a favorable environment for setting up of another plant in the same place where it operated the garment factory.
On September 9, Surya Nepal had informally announced plans to venture into fast moving consumer goods (FMCG), including noodles and soap, aimed at local market.
The workers who lost their jobs with the permanent closure of the garment factory have begun staging protests including a relay hunger strike.
"We have provided the workers the compensation amount because we want to renew our relationship with them as we are moving forward with some other projects," said KC adding, "Once the compensation distribution is done, the board meeting will be called to decide the future venture."
He said he believes that with the distribution of the compensation, the workers won´t create problems when a new business is being set up at the same location. “Though we have many projects in hand, we haven´t finalized our next project. But we will execute our new project very soon,” KC added.
Dipesh Shrestha, human resource (HR) manager of Surya Nepal, said the compensation has been provided only to the workers as yet. "We will soon fix another date to pay the compensation to the managerial staff of the closed garment factory," he told Republica.
According to him, there were 70 managerial staff at the garment factory.
Published on: 21 September 2011 | Republica
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