Shikhar Shoes shuts down after labor dispute

Shikhar Shoes Industries, producer of popular domestic brand of Shikhar Shoes, on Sunday decided to close down its operations permanently after it failed to meet the agitating workers´ demands that included among others, 50 percent rise in basic salary and education allowance for their children´s tuition.
The company management declared that it would close down production permanently after the negotiation with trade union leaders failed to bring positive result to resolve the week-long labor dispute.
The company which had been rolling out around 500 pair of shoes per day, stopped production process since September 15 after agitating workers affiliated to All Nepal Industrial Trade Union Revolutionary (ANIT-R) padlocked the factory.
Intensifying their pressure on the management, agitating workers on Friday forced closure of five authorized showrooms of Shikhar Shoes in New Road, City Centre, Bouddha, New Baneshwar and Patan. The striking workers had even resorted to attacking at the residence of Ram Krishna Prasai, managing director of the company in Ranibari Kathmandu on Saturday.
“We were always ready to address their genuine demands. But fulfilling some of their 17-point demands including 50 percent salary hike and allowance for their children´s education were beyond our capacity. Hence, we have no option but to permanently close of the factory,” Prasai said. The company was established with the initial investment of Rs 100 million.
“We have been forced to shut down the factory ahead of the major festivals when demands for shoes tend to be highest. However, we will clear the existing stocks if our showrooms are allowed to open,” added Prasai. He said though management tried to address the initial demands, the workers continued to put up more demands without considering the capability of the company to fulfill them.
“They put forth demands thrice in a month besides issuing frequent threats to us,” Prasai said.
The closure of one of the domestic factory, which was providing jobs to around 150 people is a major setback at a time when the government is planning to celebrate Investment Year 2012/13.
“The management of the company will not pay to the workers while the factory remained closed,” Prasai said.
Keshar Pradhan, central general secretary of ANIT-R said the management closed the factory unilaterally though the demands put forth by the workers were genuine. “Management doesn´t seem to be serious to resolve the labor problems,” said Pradhan.