Brandix India - a subsidiary of Brandix Lanka - which set up an apparel park at Atchyuthapuram in Visakhapatnam district, is facing severe criticism, as the workers are on strike demanding hike in wages and improvement in working conditions for the past few days.
Brandix Lanka signed an agreement with the State government, when the late Rajasekhara Reddy was the chief minister and when the Congress was in power in the united state of AP in 2005, for setting up the park.
In accordance with the pact, 1,000 acres were given to the company on lease at ₹1 per acre per annum for a period of 25 years and Brandix promised to generate 60,000 permanent jobs in five years.
The government invested ₹200-250 crore in laying roads, provision of power and water, and creating other infrastructural facilities. However, due to the subsequent economic recession and other factors, it took a very long time for Brandix to attract investment into the park and get things going.
At present, after more than ten years, the company has been able to generate only 18,000 jobs or so. Further, they are allegations that even the 18,000 employees - most of them rural women - are being paid hardly ₹5,000 a month and the employees are demanding ₹10,000 in view of the hike in cost of living.
Political pressure There are demands not only from trade union leaders but also political leaders that Brandix should be dealt with firmly by the State government.
P Vishnu Kumar Raju, Visakhapatnam North MLA and leader of the BJP in the Assembly, has demanded that the government take back 700 acres from the company, as it has failed to generate the promised number of jobs even after ten years. Further, he alleges the company is paying the employees in accordance with a GO issued by the government in 2011, not taking into account the inflation. Ch Narasinga Rao, CPM leader and trade union leader, has also demanded that the government intervene immediately.
New wage structure
The Brandix management has said that it is paying the employees in accordance with the 2011 GO fixing the wages for the workers in the garments and allied manufacturing industries. A wage revision is due and, after the government fixes the new wage structure, it will abide by the order.