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9 Jun 2020


India: Union says Euro Clothing lay-offs are "illegal"

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"All-night picket over 1,200 illegal lay-offs", 9 June 2020

... [M]anagement at Euro Clothing Company, owned by Gokuldas Exports Group, announced a lay-off of 1,200 workers, in clear violation of the labour law. In Indian labour law, lay-off is an act by which there is no production and workers are paid 50 per cent of their salaries. According to the law, a permission from the government is needed for lay-offs in workplaces with more than 100 workers... Union busting at the factory had begun a few weeks earlier...

The majority of the workers are members of Unions United, affiliated to IndustriALL Global Union. The union says the actions are not business related; it is a clear case of union busting. The matter has now been brought before the labour department of the state government.

ECC-2, supplier to H&M, is also bound by the global framework agreement signed between IndustriALL and the Swedish clothing giant.