Over 700 lose jobs for lack of market for local textiles

By Donald Kiirya          

It has merged that Southern Range Nyanza, an entity that operates former Nyanza Textile Industries Limited (NYTIL) had to lay off up to 600 employees after government stopped procuring from them.

“Government used to procure uniforms for armed forces like the army, police, prison, Auxiliary forces and rangers and those for health workers on government pay roll but stopped. This forced Southern Range to lay off about 600 casual workers from the garment section,”  Jane Achoda, a senior head of the garments section told Journalists who had visited the Njeru based textile factory after a press conference on Tuesday.

Vinay Kumar (right) showing Journalists cotton they use to make fabrics at Southern Range Nyanza on June, 2. PHOTO/Donald Kiirya


 

“Most sewing machines are not functioning because there are no people to operate them ever since government stopped procuring armed forces' uniforms from Southern Range. We ask government to resume buying of those uniforms from the factory so that we also earn money to look after our families.”

Another employee, Gertrude Kawuma, a sewing machine operator said most of their colleagues have been laid off due to low sales adding that desperation and anxiety is all over their faces.

“Government now imports armed forces' uniforms from China yet local textile industries like Southern Range can also make the same uniforms. So if government doesn’t encourage buying Ugandan products where shall we work? Should we go and start vending our bodies in order to get some money to look after our families,” Kawuma asked.

Some of the employees of NYTIL seated waiting for work to do. PHOTO/Donald Kiirya

Kawuma added that they’ll be forced to go and do prostitution so that they get some thing to eat.

Sarah Namukose said if government places orders with the factory, casual labourers also earn a lot because they have to sew the garments to deliver the orders. She said at the moment they are paid pea nuts, like for her case, she is paid sh60,000 per month which is not enough for her to pay rent, buy food and pay schools fees for her children.

“Most casual labourers are paid shs2500 per day and 30,000 after every fortnight but some times management at the factory takes long to pay them,” Namukose said.

A worker at Southern Range Nyanza explaining her problems to Dorothy Mpiima (Right) the woman MP of Buikwe district. PHOTO/Donald Kiirya

Dorothy Mpiima, the Buikwe woman Member of Parliament said about 50 casual labourers from Southern range of the 750 who were laid off from the factory stormed her residence calling for her intervention.

Mpiima promised to take action noting that the PPDA law had been amended in 2014 to allow 15-20% local preference while the Ministry of Trade had developed and launched the “Buy Uganda Build Uganda” policy to avail a framework within which to mainstream local sourcing by government.

“Government institutions used to procure garments from Southern range and employees were working happily because work was available but since it stopped, this led to the lay off of 750 workers. The 400 who are currently have an order that will run out this June and should also be out of work by July 2015,” Mpiima noted.

She added that investors are also helpless since minus business, they cannot externally keep employees without work.

According to the National Textile Policy (NTP) 2009, the cotton-textile sub sector provides livelihood to 2.5 million Ugandans from farm to textile mills. Most of the cotton farmers are in the great North, West Nile, North Eastern, Eastern and South Eastern Uganda.

Caleb Aine, the Public Relations Officer for Southern Range Nyanza (NYTIL) said due to Policy gaps/failed policy implementation several companies collapsed and others are struggling from adverse unfair competition
with imports that are hugely subsidized.

Aine cited collapsed companies as Mulco Textiles for Madhvani Group, Phenix Logistics while Lira Spinning Mill continues to lie idle despite abundant cotton grown in Lango and Acholi sub regions, just because power costs in Uganda cannot enable the present owners to produce yarn.   

Vinay Kumar, the General Manager of Southern Range Nyanza (NYTIL) said they have investment to a tune of 35 million dollars at Nytil but production had declined.

He added that they stopped hiring casual labourers for the last six months since they do not have many orders to make garments.