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| Sunday, 30 May 2004 |
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Hope for defunct industries A committee will be appointed by the Cabinet to look into the problems of the defunct industries and how to revive them. Minister of Labour Relations and Foreign Employment Athauda Senaviratne made these comments last week when he and Deputy Minister of Finance Ranjith Siyambalapitiya met representatives of the now defunct Kabool Lanka and Kabool Lace Mattegama to discuss the measures to re-open the two factories which employ more than 4000 people. Minister Senaviratne said that the Government would try its best to start up operations as soon as possible. "I have already met the ambassadors of china and Malaysia as well as the Korean Trade Association and have requested them to find an investor for it," the minister said. Minister Senaviratne said that Government is ready to give a purchase guarantee to any investor who will invest in the mill to the effect that the Government will buy the entire production for ten years. He also requested the HNB representative to see whether the Ceylinco group is still interested in investing in the mill. Earlier they have had several discussions but failed as they did not want to take over the burden of previous EPF, ETF payments (Rs 86 million) which had not been paid by the Korean investors. President of the Inter Company Workers Union branch requested the Government to reopen the mill without giving it to another investor." It is possible as there are people who are capable and who love the institution." He also requested the Government to give a reasonable allowance to the workers until steps are taken to re-open the factories. Jathika Sevaka Sangamaya Thulhiriya branch Vice President Shantha said that they also want the factory to start operations as soon as possible and promised that they would support the other unions to safeguard the rights of the workers. Nidahas Sevaka Sangamaya branch secretary Munasinghe asked that the EPF ETF dues of the workers be paid without further delay and that it should be a reasonable allowance. He said that no payments have been made since April this year while more than 50 workers have not got the special allowance paid last year or the allowance which was paid in April. HNB representative said that their is a delay in paying the workers who have not got the special payments as they are yet to receive the Rs 10 million which the Treasury owes them. The Thulhiriya mill was privatised in 1990 and purchased by Kabool Ltd and renamed Kabool Lanka and Kabool Lace. During the privatisation the workers did not get 10% of the shares which is the normal procedure Munasinghe, said. The factory was taken over by HNB and BOC as the investors failed to settle the debt which amounted to Rs 500 million. It is estimated that the restructuring cost would exceed US $ 10million. (SG) |
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