UNIONS in Sri Lanka slammed the closure of a factory that has left more than 1,400 workers jobless today.

The Next garment factory, in Sri Lanka’s Katunayake Free Trade Zone, was closed down without notice on Monday with workers being told of the closure via WhatsApp and text messages.

Bosses at the factory, which has been open for nearly 40 years, said the closure was due to mounting operational costs and ongoing financial losses. 

A company statement outlined that half of the factory’s total 2,825 employees were affected, while workers at other locations would keep their jobs.

The company has proposed a redundancy package including two months’ salary, but trade unions argue the closure breached existing agreements and was carried out without adequate notice or due process.

Next Manufacturing Sri Lanka director David Reay said: “I am very sad that we have had to make this decision after so many years of working with colleagues in Katunayake.”

Free Trade Zones and General Services Employees union joint secretary Anton Marcus told the Morning Star: “This unilateral action is totally against the law and against the collective agreement signed with the company which says that such decisions have to be taken in consultation with the union.”

Acting Minister of Labour Mahinda Jayasinghe told the Sri Lankan parliament that they would be bringing all parties together and said the “Labour Department must be informed prior to a factory closing down,” but Next had not informed them until the day after.

British-based international charity War on Want has had a long relationship working with the unions at the plant.

The charity’s director of programmes, policy and campaigns Liz McKean said Sri Lankan workers were being treated this way while “Next has raised its profit forecast to £1 billion.

“These workers are not expendable. They are part of the value that drives those profits.”