Unions lament Kahawatta Brandix factory shut down: Company says merger, not shutdown

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By: Isuru Parakrama

Colombo (LNW): Contradictory reports emerge with regard to a certain garment factory run by the apparel giant Brandix, where the workers’ unions lament that the Kahawatta Brandix factory has been shut down, but the Company denies the allegation, stating that merely ‘a merger’ has taken place.

Over 2,000 employees are working at the Brandix factory in Kahawatta.

The reports surface in the backdrop where many previous claims had been made that a number of factories owned by the apparel giant were shut down, whilst workers’ unions allege that the employees attached to the Kahawatta factory have been reassigned to the factory in Nivithigala, in what they described as ‘a cover-up’ to the shutting down.

There is a tendency of continuous closure of garment factories amidst the declining of orders stemmed by the global economic situation, and in the next five years there is a probability that Brandix may leave Sri Lanka, leaving thousands of employees jobless, unions added.

However, the apparel giant upon a query told LNW that the Kahawatta factory has been merged with the Nivithigala factory in view of providing “a more efficient service to the global customers” as per a pre-determined plan, hence no such shutdown ever being taken place.

A voluntary retirement scheme has also been implemented for the employees who wish to retire voluntarily and this scheme is being implemented solely based on the employees’ wishes, a spokesperson for Brandix said.

The company denied the rumours that Brandix Group has opened new factories in Bangladesh, stressing that they are false and emphasised that the factory overseas was built thirteen years ago.

Commenting on the reports that the company had closed five garment factories across the country, the spokesperson asserted that such an event did not happen at all and only the Welisara factory was shut down based on the company’s desire.

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