Garment workers face uncertain future

By Our Special Correspondent

NEW DELHI, MAY 25. The crisis affecting the ready-made garment industry has started impacting the livelihood of workers associated with the sector. As many as 80 lakh workers are directly or indirectly associated with ready-made garment units and many of them have either been retrenched or are on the verge of being rendered jobless due to the imposition of 16 per cent excise in the recent Union Budget, say industry sources.

According to industry estimates, a quarter of the 58,000 medium scale ready-made garment manufacturing units have already closed down. Some companies such as Pantaloon have announced plans to shift their manufacturing activities to Bangladesh and other neighbouring countries.

With practically no resources or skills to qualify for other jobs, the garment workers will be the worst hit. The smaller units too will be shedding their workforce.

According to the industry, the 16 per cent excise levy translates into 25 per cent increase in the price to the consumer. This leads to an estimated 40 per cent reduction in demand. ``This would be reflected in the diminishing demand for garments and would be the final nail in the coffin of the beleaguered textile mills already reeling under the impact of high production costs and global competition,'' says Mr. Satish Sainani of the Garment Rozgar Bachao Andolan.

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Section  : Business
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