The management of Surya Nepal today gave retirement to 600 workers of its garment unit and distributed compensation among them. The management in August had decided to close down the factory citing prolonged labour unrest.

According to chief of the garment unit of Surya Nepal, Awadhesh Jha, the management distributed Rs 29,800 -Rs 25,000 compensation and Rs 4,800 increased pay -as lay-off benefits to each worker.

The decision to grant retirement and provide benefits to the workers was taken on Saturday as per the agreement reached among representatives of Morang Industry Organisation, Labour Office, trade unions and Surya Nepal.

Company corporate Vicechairperson Ravi KC, garment unit Chief Jha, GFONT central member Dharma Sanjel, All Nepal Trade Union Federation central member Tejlal Karna and 16 other representatives affiliated to garment union were present when the agreement was reached.

The garment unit of Surya Nepal, a subsidiary of ITC, India, was started in 2007 after the company diversified into apparels from tobacco production and had been producing ITC's John Players and Springwood labels in its Biratnagarbased factory till the company decided to close down the factory. Closure of Surya Nepal's garment unit was a major setback at a time when the coun try is floundering to woo foreign investment in the wake of frequent labour unrest, closures and power crisis. The government about two weeks ago had requested Surya Nepal to re-open its garment unit.

Surya Nepal's decision today, it seems, is aimed at setting the premise for opening a new industry on the same premises. “Surya Nepal has many projects; we will run a new project soon. It may be a garment or any other unit,“ said Jha, adding, “The new set up will be launched keeping in mind what is in demand in the region"

The Surya Nepal management had taken the decision to shut the factory in August after it declared a lockout in midJune when workers held 37 officials hostage for 24 hours without allowing them food and water. Police had to intervene to release the captives.

The workers, most of them women, had then gone on the rampage demanding that the management pay them for the eight days when the factory remained shut. However, the management had refused to oblige, saying it was following `No-Work, No-Pay' system.

The garment unit of Surya Nepal, the country's biggest tax-paying company, was exporting its products to Indian, American and European markets.

With the decision to give retirement and distribute lay off benefits, the workers, who had been organising relay protest on the factory premises, have called off the strike.

Published on: 21 September 2011 | The Himalayan Times