COVID-19 crisis to hit apparel industry targets
Sri Lankan apparel companies hit by the COVID-19 pandemic have reduced their capacity resulting in delays in production amidst growing tension among communities and concerns by trade unions that workers are under pressure. But everyone believes work needs to continue to ensure the economy survives.
As a result of the reduction in capacity at the factories the apparel industry believes they will be unable to deliver on the US$5.1 billion target set by the authorities for this year. Some experts believe it is likely to go down to about US$4 billion should the current pandemic conditions continue.
In the wake of the recent spread of the coronavirus, factories in Pannala, Horana and Kotmale were hit with large numbers of workers infected with the virus. Following this outbreak the factories in these areas have resumed operations at about 65-70 percent capacity.
Meanwhile, in the Koggala Free Trade Zone there was a widespread outbreak of the virus that resulted in a closure of the factories for about five days. This is now said to be operational at about 20-25 percent capacity on average for the entire zone.
Some industry experts told the Business Times that they believe this is something that needs to be worked out based on the different options available to them like closing down everything; or address the situation; and carry out the vaccination programme.
The industry as a whole is said to have adopted the guidelines issued by the Health Ministry and ensured very strict adherence to protocol and even screening workers for signs of the virus.
Orders delayed
Targets and production is out of the window now, it was pointed out as the factories are facing delays in meeting orders.
Orders currently processing that came in February and March with deliveries in April are likely to get delayed due to the recent outbreak.
There is a huge impact on exports as right now shipments are off for the fall holiday season and if the existing orders get delayed there is a possibility that the next season’s orders are likely to get reduced.
“If we don’t do those and delay that order then the spring and summer orders will be much lower when the season starts,” one expert said.
Rapid spread in Koggala
Free Trade Zone Manufacturers Association General Secretary Dhammika Fernando told the Business Times that in Koggala zones there were about 1500 infections reported.
Koggala has recorded a high number of cases despite the presence of less than 20 enterprises with around 13,000 workers with most being an extension of the factories in Katunayake.
Since it resumed operations only those particular areas within the factories that had infected persons are closed but some factories have been closed for quite some time, Mr. Fernando said.
He noted that there was a death reported on Saturday of a senior manager after being detected with COVID-19. This is the second death recorded in the apparel industry with the first case reported of a COVID-infected woman who died in February this year.
Meanwhile, factories have been engaged in establishing isolation centres in Katunayake, Seethawaka and Biyagama zones.
Despite Katunayake playing host to the highest number of workers it has recorded the lowest number of infections under the third wave. Katunayake recorded about 750 positive cases since April 2021, Biyagama recorded 1,440 positive cases. Seethawaka with about 25,000 workers has recorded about 400 cases. Total number of COVID-19 positive cases recorded from all FTZs is 6, 317. Tensions build up
The previous week MAS Holdings recorded a case of 400 infections from its Thulhiriya plant. MAS Holdings Kilinochchi plants were closed and reopened on Friday.
Company spokesman Suren Wijeratne affirmed there was community tension due to a general sense of the unease about the spread of COVID in a number of locations like Thulhiriya, Panadura and Kilinochchi. The Thulhiriya and Kilinochchi plants opened up at very low capacities on Friday under the strict instructions of the Medical Officer of Health (MOH).
Unichela Panadura has been closed since Saturday (May 15) following the detection of COVID – 19 cases and is awaiting the direction from the local MOH as to their reopening dates.
Communal tension has not been unique to MAS factories but in other places as well where allegations have been leveled against factories for not taking care of the workers against the virus.
FTZ Workers Trade Union General Secretary Anton Marcus said that they too are not asking for work to be halted but there is growing tension among the communities of the fear of a spread of the COVID-19 among workers.
However, he noted that when he requested the Joint Apparel Association Forum (JAAF) the apex body of the apparel industry to call off work considering the plight of the workers, they refused saying that they would do so should the government ask them to stop work.
Mr. Marcus also pointed out that the authorities were late in rolling out the vaccination programme for factory workers despite repeated requests to do so.
Upto now he noted that according to employers in the Katunayaka FTZ so far they have been given only about 2000 vaccines where there are employees numbering 40,000. Vaccinating factory workers started about two weeks back.
JAAF General Secretary Tuli Cooray said that if they were to close the factories “we will lose the business forever.”
At present factories are running at 40-50 per cent capacity due to the rise in COVID-19 infected persons and isolations carried out.