FAISALABAD: Back to back strikes of powerloom and sizing sectors have worsened financial conditions of many, including Farrukh Ghani, a powerloom worker in Faizabad.

“Powerloom owners and Labour Qaumi Movement office-bearers are up in arms against each other over issues of extra labour and allegations of extortion. Similarly, sizing unit owners are on strike against imposition of tax by the Federal Board of Revenue (FBR). Only workers are suffering due to this and neither factory owners nor government officials are bothering to compensate poor labourers,” Ghani complained.

Powerloom owners of Sidhar and Rashidabad remained on strike from Aug 8 to 28 and Sept 12 to 18. The sizing sector was closed from Sept 12 to 22. Both sectors were considered backbone of the textile sector as sizing prepared beams mandatory for fabric weaving at powerlooms. Like workers, spinners and traders of yarn, sellers and brokers of fabric were also perturbed over the strikes.

The FBR imposed Section 40-B of the sales tax act on two sizing units triggering a strike. However, on Tuesday night the sizing association decided to call off the strike going on for 11 days.

Shakil Ansari, chairman of the sizing association, claimed the FBR had imposed Section 40-B without any justification, but “now we have been assured the restriction would be lifted and factories resume working”. He said the government had also imposed 17pc sales tax on starch, a major raw material used by the sizing sector. He admitted workers had been facing financial crunch owing to strikes.

Mushtaq Ahmed, attached with a spinning factory, said strikes of powerloom and sizing units had buffeted the yarn business and spinners and traders, too, had faced losses worth billions of rupees. Millers were awaiting a package to be announced by Prime Minister Nawaz Sharif that he promised at a meeting in Islamabad on Sept 11. He said the PM had patiently listened to issues being faced by the textile sector and was apprised about rapidly declining textile exports.

Council of Loom Owners Chairman Waheed Khaliq said fed up of regular demands of extortion by leaders of Labour Qaumi Movement (LQM), millers of Sidhar observed a strike for more than three weeks that created financial problems for workers as well as owners. He claimed the situation had still not improved in Sidhar as a group of LQM ransacked property of a weaving unit and police were not taking action.

LQM spokesman Abuzar Ghaffari denied they were demanding extortion. He said the LQM had been struggling for rights of workers being allegedly exploited by owners.

Farrukh Ghani said strikes had landed him in financial trouble and he had asked his owners for a loan that was denied. He said the government must announce a special compensation package for labourers.

Pakistan Textile Exporters Association Chairman Asghar Ali said stuck payments of exporters in refund regimes, energy shortage and lack of competitive edge in international market were major challenges hindering export growth. The government should devise a comprehensive strategy to counter these issues not only to regain industrial pace, but also save livelihoods of millions of workers.

Pakistani exports were under pressure due to prevailing economic, financial, industrial crisis in the country as well as persistently high cost of production, heavy burden of taxes, energy crisis and lack of working capital, which were adversely affecting industrial and trade activities.

Ali emphasised on unity in the textile sector to enforce the government to focus on consolidation and strengthening of economy and uplifting of industrial productivity in the country.

Published in Dawn, September 28th , 2015

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