Modern Dyeing & Screen Printing Ltd has announced a layoff because of low gas pressure and failure to get an environment clearance certificate from the government for running the factory.
The company also blamed low efficiency of its ageing textile dyeing, printing and finishing machinery for the layoff.
Some workers said the announcement, which came on Sunday, has put more than 100 employees in uncertainty, as they were not informed in advance about the move.
Company Secretary Biplab Kumar Guha Neogi said it was a 'known' case among the workers, who he said will get back their jobs when the mill resumes operations. The layoff is 'temporary', he added.
But Modern Dyeing, a listed company that was set up in Tejgaon Industrial Area in 1987, did not mention when it will be able to come back to production.
“It depends on getting adequate supply of gas. We will talk to Titas to get required gas for resuming production,” Neogi told The Daily Star yesterday.
The announcement, posted on the Dhaka Stock Exchange (DSE) website, weakened investor confidence with the company shares ending 4.19 percent lower at Tk 559.25 yesterday. Book value of Modern Dyeing share is Tk 100 each.
The layoff announcement came at a time when both industrial and household users, especially in the city, were suffering from gas shortage caused by a mismatch between demand and supply.
In a bid to improve the situation, the government has recently started gas rationing on a rotation basis in textile and readymade garment sector by dividing Dhaka and its adjacent areas into seven zones.
“The gas pressure was too low to ignite fire in the boiler. It has become unbearable. We had our back to the wall,” said Neogi.
“We also do not have enough space to set up an ETP (effluent treatment plant) on the present factory premises. If the government sets up a central ETP for Tejgaon Industrial Area, it will help us become environmentally compliant,” he said.
In its posting on the DSE, the company said its board has decided "to lay off the mill with effect from 8pm January 31 until further order due to lack of environment clearance certificate, low gas pressure and low efficiency of existing machinery."
“It's inhuman. It came suddenly. We have nowhere to go,” said a worker who declined to be named.
The 35-year-old said he came to know about the layoff Sunday evening.
“My wife fell sick hearing the news. It will hurt schooling of my kids unless I get another job soon.”
He said the company management has assured the workers of paying the dues. “But it's not clear whether they (the owners) will pay us more to sustain the blow,” he said.
However, the company secretary denied the allegation that the workers were informed suddenly.
“In fact they were hinted about the layoff earlier. It was almost a known case. That's why we didn't notice them in advance,” he said. “But we will bring them back after resumption of production.”
In its unaudited half-yearly report as of December 31, 2009, Modern Dyeing said its net profit rose to Tk 0.53 million from Tk 0.47 million a year ago.
Its EPS (earning per share) also increased to Tk 3.84 from Tk 3.47 in the previous year, the report said.
Source: thedailystar.net
