NEXT closure exposes antics of self-centred trade unionism

For all his decades of union activism, Anton Marcus also holds dubious credit of closing down several factories

- BY AJITH PERERA

THE closure of the NEXT facility in Katunayake caused quite the din. The announcement came out of the blue; carefully conceived by management to ensure safety of staff and equipment. Naturally, the affiliated union and those outside cried foul. But Industries Minister Sunil Handunneththi alluded to the truth in Parliament.

“They have closed the sewing division because it is not profitable. There is a problem there. There is a collective agreement with a certain union. This particular collective agreement with the union is not found in all factories in the garment industry.

This is something they have devised," Handunneththi told the house.

This is the truth behind the closure of this facility at Katunayake. NEXT made room for the said union to set up office due to fears of rebuttals from related stakeholders in Europe. They needlessly gave them collective bargaining power despite not having real 40% representation. Effectively, the Union and its 'master' priced NEXT employees in Katunayake Sri Lanka out of employment. The factory was making close to $ 1 million in losses every month for several years.