\nHindu, India<\/p>\n
Bageshree S. and Sharath S. Srivatsa<\/p>\n
BANGALORE: This Deepavali has not brought cheer to owners and workers of apparel factories here with the slowdown in the world economy affecting the industry. Several factories here are facing problems with deferred purchase.<\/p>\n
\nThe orders for factories, which are dependent on exports, mainly to the U.S., have come down by about 10 per cent following deferred buying by big apparel brands.<\/p>\n
Industry insiders say that the situation might become worse in the next quarter if the global situation does not improve by then.
\n Reduced spending<\/p>\n
Rising unemployment and reduced spending by the Americans have forced some of the leading brands in the U.S. to close down their outlets, which in turn has affected the apparel industry here. The U.S. accounts for 55 per cent of all global apparel imports.<\/p>\n
Sandeep Walia, Chief Executive Officer of Arwind Apparels, told The Hindu that the industry was in \u201crecessionary mode,\u201d and industries were looking at \u201cbuilding in efficiency\u201d and \u201ccutting out all the fat\u201d by cutting down on expenses, such as avoidable air travel, and \u201cincreasing plant efficiency\u201d.<\/p>\n
While some of the smaller units have closed shop, many are giving extended Deepavali break to workers with a rider that they will make up for this when the orders start pouring in.<\/p>\n
The fact that people in Europe and the U.S. are not walking into stores of branded apparels and buying brands such as GAP, Lands End, Ann Taylor, West Seal and J.C. Penny has affected business, said Ravi Kishore, an industry consultant.<\/p>\n
\u201cMany of these brands which have businesses in India have deferred purchase,\u201d he said.<\/p>\n
Acknowledging that there is an \u201canticipation of slowdown\u201d by December if the present trend continues, Jagdish N. Hinduja of Gokuldas Images, said that orders were \u201creasonably good\u201d at present.
\n Feeling the heat<\/p>\n
Meanwhile, the downward trend has turned the heat on about six lakh garment workers in the city.<\/p>\n
The industries are resorting to reducing the shift size and giving offs to the employees.<\/p>\n
Kumari, a worker in a factory at Gowdanapalya near Uttarahalli, said that production targets were so strict now that workers found it difficult to take a break even to drink water.<\/p>\n
She had no work between October 2 and 13 and is yet to know if she will be paid for this period.
\n Holidays<\/p>\n
A company on Mysore Road, which employs 2,700 workers, has been giving week-long holidays to employees by turns.<\/p>\n
\u201cThey have been paid for this period and told that they should compensate for it when work picks up again,\u201d said K.R. Jayaram of Garment and Textile Workers Union.<\/p>\n
Vishalakshi, who worked as a tailor at MD Apparels at Madanayakanahalli, lost her job when the unit closed down. She joined another factory in the same locality, but was paid only Rs. 120 a day as against Rs. 147 paid earlier.<\/p>\n
\u201cThe market is down and they said I could quit if I was not happy with the pay,\u201d she says. Ms. Vishalakshi is now looking for her third job within six months.<\/p>\n
A manager of a unit near Nelamanagala said he had instructions to cut about 10 per cent of the employee strength after strict performance appraisals. Overtime wages had been stopped, he added.<\/p>\n","protected":false},"excerpt":{"rendered":"
Hindu, India Bageshree S. and Sharath S. Srivatsa BANGALORE: This Deepavali has not brought cheer to owners and workers of apparel factories here with the slowdown in the world economy affecting the industry. Several factories here are facing problems with deferred purchase.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n