National Textile Corporation has cut down production in all its mills in South including the five units in Coimbatore. The management has decided to reduce the number of shifts from 3 to 2 due to the sluggish market since last three months. The mills may not require the services of its temporary workers and will retain only the permanent workers.
More than 1000 workers to become jobless
The 5 NTC mills in Coimbatore have about 3500 employees out of which 40% are temporary workers. Due to the reduction in number of shifts, the temporary workers are on the verge of loosing jobs.
Trade Union opposes
Trade Union opposed the decision of the NTC management and demanded the management to run all 3 shifts. The NTC management had talks with representatives of Trade Union. Since no agreements could be reached, further talks will be held on July 7, at the office of the Assistant Commissioner for Labour in Madurai.
Sluggish market & power shortage
M M Chockalingam, Executive Director, NTC, Southern Region said that the decision was due to the sluggish market. Also, the management is not in a position to procure additional power to run the mills due to the acute power shortage in the state. He further said that unlike the mills in the private sector, NTC purchase cotton yarn only 3 months in advance. The downward fluctuation in the market affects them severely. He hoped that the market may revive in the coming months.
The bleak scenario
The NTC mills in Southern Region had yarn stocks worth Rs. 80 crore. In April this year, the stocks were purchased at the price of nearly Rs.205 a kg which has now slumped to nearly Rs.145 a kg. There is a lull in the international as well as domestic market. Prices are on a steady course of decline. The private mills in the state had already reduced production a month back.
Hope for revival
The NTC management is hopeful of the market getting revived in the next two months. The reduction in number of shifts is only a temporary move and the third shift may be restored when the demand picks up.