Image Courtesy: economictimes.
Gokaldas exports, one of Karnataka’s largest apparels exporter has reportedly closed its unit in the state on June 6 resultantly laying off 1,300 employees. It employs around 25,000 people, most of which are women. The manufacturing plant is located in Srirangapatna town in Mandya, 45km from Mysore, and is called Euro Clothing Company II. Gokaldas Exports has more than 20 garment-making units in Karnataka and reportedly, this is the only unit being shut.
According to its website, its clients include international brands like GAP, Banana Republic, Abercrombie & Fitch, H&M, Reebok, Adidas, Zara, Columbia Sportswear Company, Marks and Spencer and Puma.
The Telegraph reported that the local tehsildar and trade union leaders alleged that the shutdown took place without the mandatory one-month notice to the state labour department.
The workers have been protesting this move and their demonstrations continue as the company management has refused to budge from its decision.
The Tehsildar MV Roopa told The Telegraph, “The company did not inform us about the layoff plan. We had approached the company when they moved the machinery last week. They claimed they had removed the machines because some orders were cancelled…The management has now said it could not send notices to the labour department because of the lockdown. We have called the management and workers to the factory on Monday. Our job is to ensure the workers don’t suffer.”
There are speculations by trade unions that the lay off was triggered by the H&M reducing its orders since the unit was only manufacturing for that company.
Under the Industrial Disputes Act, 1947 (IDA) the term ‘lay-off’ has been defined as the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery or natural calamity or for any other connected reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.
Section 25M of the Act states that a workman cannot be laid off without prior permission of the appropriate authority unless it is due to shortage of power or natural calamity. The section further provides that the copy of the application made to the government authority be provided to the workmen to be laid off and the decision is made by the authority after giving reasonable opportunity of being heard to the employer as well as the affected workmen. The section further states that the if no such application is made then the lay off is illegal and the workmen should be compensated accordingly.
If proper legal procedure is followed as mentioned above, the workman is also entitled to compensation under section 25C of the Act, for 45 days at least.
In general, the garment workers in Karnataka, comprising mostly of women, have been suffering since the lockdown. As per a report prepared by Garments Mahila Karmikara Munnade (GMKM) and the Alternative Law Forum (ALF) 63 per cent of workers in garment factories did not receive the April salaries. Of the rest, many were paid 30-50 per cent of their wages, which means they received between Rs.3,500 and Rs.5,000.
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