Apparel exporters call for Govt intervention

By Gamini WARUSHAMANA

The apparel industry will not be able to stand the 30-40 percent wage increase demanded by trade unions and such a huge wage increase will be detrimental to the industry which is already affected on many fronts, Chairman of the Apparel Exporters Association (AEA), Rohan Abayakoon said.

He said that the Wages Board had approved a 40 percent wage increase for hotel industry workers and therefore the industry is nervous of trade union demand. It's true that the cost of living has risen and a wage increase is necessary but what we can afford is a 10-15 percent increase and an arbitrary wage increase above that was difficult,he said. Abayakoon said that the AEA anticipates a setback in the industry, with around five percent decline in exports this year.

Last year, apparel exports surpassed the $ 4b mark and due to the economic crisis in the Euro Zone,exports to the EU will decline.