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Nearly a week after launching a sit-in protest against the sudden closure of their factory, the women garment workers of Celebrity Fashions Limited’s Avadi unit in Chennai have reached a settlement with the management. The protest, which saw participation from several hundred workers, concluded after final negotiations on Friday, June 13, following interventions by the Tamil Nadu Labour Department and the Garment and Fashion Workers Union (GAFWU).
The dispute began on June 7, when the company informed its employees that the Avadi unit would be shut down by June 30, citing financial losses and a drop in production. Workers were told they could either resign or transfer to Celebrity Fashions’ other unit located in the Madras Export Processing Zone (MEPZ) in Tambaram, which is 35 kilometres away.
However, for many workers living in northern and northwestern suburbs like Minjur, Uthukkottai, and Periyapalayam, the relocation was not feasible due to the long commute, family responsibilities, and early working hours.
“We already leave home at 7.20 am for Avadi. For MEPZ, we would have to leave by 5 am, which is not possible for many women who have to take care of children and families,” said Renuka* (name changed), a worker from Minjur.
The abrupt closure announcement triggered a sit-in protest inside the Avadi factory premises starting June 9. Though police barred them from holding a protest outside, hundreds of workers stayed inside the factory compound, managing food expenses themselves and even bringing their children along.
Their demands included a three-month salary, earned leave (EL), and applicable bonus. GAFWU filed a case under Section 2(k) of the Industrial Disputes Act (dispute or difference between employers and employees) in the Labour Court.
After multiple rounds of talks, an agreement was reached on Friday, June 13. This included 45 days’ salary as compensation for workers with three years of service, to be paid by July 30; 15 days’ salary for those with at least one year of service and 10 days’ salary for those with six months of service, to be paid by July 10; and the full salary for June, plus EL and bonus, to be paid by July 7.
The Avadi facility, which began operations three years ago, employed nearly 700 workers, of whom 550 are women. Workers earned between Rs 12,000 to Rs 15,000 per month and worked from 8.30 am to 5.30 pm. While the company provided transport from 32 locations, the longer commute to MEPZ remains a major hurdle for many women.
Though the dispute appears to be resolved, union representatives and workers raised concerns over the company’s track record. “There are allegations that Celebrity Fashions has previously withheld settlement dues of former employees. We fear that even now, not all workers may receive their full compensation,” said Sujata Mody, president of GAFWU.
The union also alleged that the management violated labour laws by excluding them from the final round of conciliation talks. “Under the Industrial Disputes Act, the management is legally required to engage with the union during the disputes. But both the company and government officials ignored this,” a union representative said.
Workers also described harsh conditions during the protest, including denial of access to restrooms and drinking water. "One day, a snake entered the premises. Some of us were bitten by insects while staying overnight," said one of the workers.
“This entire system remains anti-women, anti-labour, and anti-society,” added Sujata Mody.
TNM has reached out to Celebrity Fashions Limited for comment on the allegations regarding unpaid dues to former employees and the exclusion of the union during final negotiations. This report will be updated if and when they respond.