No prior notice from Katunayake apparel factory regarding closure: Minister

Factory never discussed about its high production cost with BOI or government  

Ministry to discuss with the factory management, its Trade Unions and the BOI about the issue

By Ajith Siriwardana and Yohan Perera 

The management of the Katunayake apparel factory had not made a prior notice to the labour Department of its closure nor discussed with the government about reasons to close down the factory, Acting Minister of Labour Mahinda Jayasinghe said yesterday.   

He told Parliament that the factory had stated that the high cost of production had resulted in the closure and that the management had not discussed about it with the government or the Board of Investment (BOI).  

The Minister said while responding to a question raised by Opposition Leader Sajith Premadasa that the factory had issued notice of its closure on May 19 and that according to labour laws, prior notice must be made to the labour department.   

The Opposition Leader said some 2,000 employees of the factory had lost jobs due to the closure and urged the government to intervene immediately.   

Minister Jayasinghe who responded said 2,825 workers are employed in four units of the factory and that only 1,416 employees will lose jobs.   

He said the Ministry will discuss with the factory management, Its Trade Unions and the BOI about the issue.   

The Minister said the factory has proposed a compensation formula and that ministry will discuss about it with the management.