Swazi factory Tex Ray 'not closing' - reports
The Tex Ray Swaziland Group has come out to state that even though it needs to adjust on production it will not be closing shop as reported.
In a statement, the company’s Managing Director Ricky Tai said the company was forced to retrench part of its workforce for the time being in order to prevent the company from getting into financial losses.
He said the looming removal of the country from the list of beneficiaries of the African Growth and Opportunity Act (AGOA) from January 2015 has impacted deeply on the company’s business.
However, he said, it was doing its best to secure new orders from potential customers to return to its original production capacity adding that such would require more time.
“While Tex Ray Swaziland Group will not close down, we have no choice but to retrench part of our workforce for the time being in order to diminish this company’s financial loss. Tex Ray Swaziland Group will definitely continue operations in the Kingdom of Swaziland and benefit our Swazi friends as always,” Tai said.
There are at least 17 289 people employed by the textile companies in the country and all these could lose their jobs should the kingdom lose its AGOA eligibility.
Amongst these companies, Tex Ray has one of the highest number of employees being 6 000, Zheng Yong in Nhlangano has 2 000, FTM Garments employs 1 480, Leo Garments has 800, the Great Spring has 600 and HO’s Enterprise has 750.
The AGOA programme allows companies in eligible countries to export goods to America under duty-free conditions.
To save the AGOA jobs, government has to meet five benchmarks that have been put up by the USA and these include full implementation of amendments to the Industrial Relations Act to provide for the registration of federations; full passage of amendments to the Suppression of Terrorism Act; full passage of amendments to the Public Order Act; full passage of amendments to sections 40 and 97 of the Industrial Relations Act; and drafting of a code of conduct for police officers during public protest actions.
The US embassy says it has not received any feedback from government on action, if any, that has been taken to meet the benchmarks.
On Monday, workers from Tax ray engaged in a mini picket outside their factory as it dawned on them that they are on the verge of joining the unemployment ranks.
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