The 920 lay-offs at Floréal Knitwear last week were not the only ones. There have been some 700 at Arvind Overseas (Mauritius) and 65 at Ferney Spinning Mills. Everywhere it is the same established fact: the textile industry is in a fix and the managers say they have to take tough decisions and make a few workers redundant to save the jobs of others.

At Floréal Knitwear, a feeling of injustice pervades the air. People just don’t understand. Although the management gave the assurance that redundancies would be done in the fairest way possible, workers do not feel it is the case. “I am a good worker, I have never been absent and have never had any warning. Why did they lay me off?” Sadhna, 49, wonders.

The pullover manufacturer will spend Rs 26 million in compensation for redundancies. Some of the 685 workers scheduled to be transferred to the two production sites remaining have expressed the wish to be compensated rather than to move to Manghalkan or Reunion units. As a result, Floreal Knitwear general manager Nicolas Maigrot intends to “discuss the matter with the people concerned. This will be done through individual meetings” he explains.

The authorities nevertheless appear confident about the future. Showkutally Soodhun, the minister of Labour and Industrial relations, declared: “No matter the international context, textile will continue to employ many people in Mauritius. (...) There is still hope: Rosana Textiles will open soon, Star Knitwear is opening a branch in Flacq, CMT will inaugurate its spinning mill and Tian Li will absorb 300 of the people from Floréal.”

<B>Government blamed</B>

The minister also points to the fact that companies “will have to restructure to adapt to the new context, and this should have been done a few years ago.” It cannot be denied that the management of each factory should play its role to make sure it remains viable. This is how CMT has managed to distinguish itself from other textile factories. It took the right decisions at the right time.

But has the government a role to play in this issue? The authorities have known that the Multi-Fibre Agreement (MFA) was coming to an end for quite a long time. Why didn’t they react and why did they wait for the situation to become unbearable before asking themselves questions. It is no surprise that China has woken up. It has always been known that production costs in countries such as India, Vietnam or Pakistan were lower than in Mauritius.

According to the manager of one important textile firm, “the textile industry is sick. I cannot understand why the government does not give its support to the sector. The textile industry employs some 100,000 people. They are too slow to make important decisions and let big factories like Arvind Mills leave. Moreover, it is the same person who chairs practically all the meetings and committees.”

Trade unionist Yousouf Souklall is also critical towards minister Soodhun, who said that he trusted Floréal Knitwear. He criticised the government for not supporting the workers, as it should have done.

Rama Sithanen, the Labour party spokesperson on the economy, warns that the worst period is ahead. He blames the government for its treatment of the textile issue. He believes that it has not been convincing enough in its lobby for the third world fabric exemption, which could have prevented foreign textile companies from leaving Mauritius.