Apparel industry to lay off 30% workforce
Sri Lanka’s apparel industry is likely to lay off at least 30 per cent of its workers including permanent cadres even as they receive global orders to manufacture face masks and surgical gowns.
“At least 30 per cent of the workforce of the entire apparel industry is likely to get laid off including permanent staff as well,” Sri Lanka Apparel Exporters Association (SLAEA) Chairman Rehan Lakhany told the Business Times on Thursday.
He noted that some factories had decided to pay some salaries like about 70 per cent of the workers’ dues as they face mounting issues with costs soaring to millions of dollars in cancellations and retail stores in the European Union and the US shutting down.
Mr. Lakhany explained that inspite of discussions with the Presidential Task Force and the Labour Minister they as factories would be unable to obtain a loan from the government and pay wages as there is no output and no production going on at the factories.
“Industries will go bankrupt if they borrow and pay for three months,” he said.
While some orders have been cancelled others have requested for discounts, he said, adding “ We have to accept it since we have no choice as this is better than losing 70 per cent of our money when they cancel the order.”
Mr. Lakhany pointed out that the local apparel industry is too big to manufacture protective medical equipment in all its factories.
The industry is donating two million face masks and protective medical equipment and for this each factory is bringing in their own workers to the factories.
The first batch of face masks was handed over the State Pharmaceutical Corporation (SPC), he said adding that within about four weeks the industry would be able to make the required number of protective medical needs.
Some factories are continuing to receive orders for the manufacture of safety gowns and face masks but the issue is that the raw materials still need to be channeled from China and this is likely to come through only by end June.
However he noted that should the World Health Organisation (WHO) not make it a requirement to manufacture only N95 masks then they would be able to make masks using fabrics.