Surya Nepal shuts garment unit

The biggest tax-paying company Surya Nepal — which has Indian multi-product group ITC holds 59 per cent stake — has decided to shut down its garments factory following prolonged labour unrest.
The factory that has been producing John Players and Springwood labels in Biratnagar was started in 2007 — three years after Surya Nepal diversified into garments from tobacco production.
But the militant trade unionism has forced the unit to pull down its shutters and the peoples like Bijaya Yadav of Morang have to suffer, as they have been earning their livelihood in Tankisinuwari-based Surya Nepal Garments.
"Many workers like me are left in a helpless situation after the management decided to shut down the industry because of the vested interest of few workers," he said, after receiving his last salary from the industry today.
The industry was closed from June 15 due to dispute between some workers and management after the agitating workers of UCPN-Maoits-affiliated Nepal Trade Union Workers' Organisation held management employees hostage demanding for hike in wages. The militant trade union had also closed the industries in the Sunsari-Morang corridor for eight days in April.
According to the industry's general manager Rabi KC, ITC had taken the decision yesterday to close the garment unit forever after ongoing talks with the trade union leaders failed to reach any conclusion.
"The decision has been taken after we had to cancel the orders from our clients," he added.
The industry management has distributed nearly Rs a total of 2.5 million in salaries to the workers through Standard Chartered Bank Nepal from the premises of Industies' Organisation Morang today.
KC also accused the UCPN-Maoist trade union in obstructing the regular works of the industry, after the management decided to dismiss 24 workers involved in the hostage-taking in April.
"The decision will not only hurt the workers but also the government as it will lose revenue," he added.
Tejlal Karna, a leader of the UCPN-Maoist-affiliated trade union, however said that the industry's decision to take action against the workers was illegal.
The industry, established with Rs 300 million investment, had been providing jobs to more than 600 workers and employees. Nearly 85 per cent of its products were being exported to the countries including US, Canada, France and EU.
The blue-chip company, operating with a paid-up capital of Rs 2 billion, last year paid the state revenues worth about Rs 7 billion.
Surya Nepal — which controls nearly 70 per cent of the cigarette industry in Nepal — has freshly invested about Rs 1,000-1,500 million to build a new tobacco factory in Tanahun district, which is expected to be operational by 2013.