Apparel buyers pulling out of crisis-hit Colombo

Agitation at the factories disrupting export orders is the latest addition to the litany of grievances faced by manufacturers at the free trade zones as buyers pull more and more orders out of Sri Lanka.

Amidst the resurgence of electricity interruptions fuelled by a lack of fuel to power generators, the zones are facing an impending crisis as it is learnt that manufacturers have stated at the

National Labour Advisory Council (NLAC) meeting on Thursday that the ongoing crisis has impacted on them as garment buyers are now shifting orders to Bangladesh.

Unrest prevailed at the main FTZ Katunayake on April 28 and it was expected that a similar agitation was likely to take place during the (May 6) hartal by pressurising workers to step out during working hours by political party led trade unions.

FTZ Manufacturers Association

Secretary Dhammika Fernando said that there was a “bit of a commotion at the Katunayake FTZ on April 28 where a mob was found roaming around the zones and instigating the people to come out and join the strike action”.

While some workers had responded others had not, it was noted but eventually workers did move out and as a result it had caused problems at the factories subsequently due to lack of pay for those that walked out during working hours.

Mr. Fernando noted that as a result of the current crisis, the buyers aware of the situation in Sri Lanka have been “alarmed” but some companies have responded stating they can deliver on time whereas others have indicated that they will supply late.

“The worst is yet to come,” he said but the gravity will be further felt if airports and ports close as a result of the agitation as it will hinder imports and exports.

Mr. Fernando noted that it is mainly the SMEs that will suffer the consequences of this present crisis and will be severely impacted.

At present the zones do not have power cuts but there are much larger factories outside the zones where power interruptions continue. In this respect, the manufacturers have written to the Ceylon Electricity Board (CEB) not to impose power cuts to these factories.

The unruly behaviour at the factories has caused concern as most of the other FTZ trade unions like the FTZ and General Services Union General Secretary Anton Marcus said they had resolved to carry out the campaign only after working hours so as not to interrupt the daily work as they are aware of the consequences of losing orders and its eventual impact on the workers. Mr. Marcus noted that the situation had caused problems at the factories as it was some of the managers that had allowed the workers to go out but had subsequently asked the workers to complete the same task on a different day. This was opposed by the workers as they insisted that it was the managers that had asked them to participate in the protests.

At Katunayake the workers were asked to come out by force, he explained but at the Ekala and Biyagama zones where they carried out their campaign the workers joined in solidarity.

While some factories were continuing their operations on Friday ( May 6) others were said to have announced a holiday and some have said that if workers attend the agitation they will not be paid, Mr. Marcus said.

On Friday, motorbikes, placed by some protestors, blocked the roads leading to the FTZs of Katunayake and Biyagama as a result of which most factories were said to have closed since workers couldn't enter the premises.

Moreover, buses that had brought workers to the FTZs were compelled to turn around, unions stated, adding that the workers were returning home owing to this crisis.