Three Factories Close and Demobilize 560 Workers in Lahj

By NY Staff

Three factories in the private sector have declared their bankruptcy and closed their doors due to the security and economic deterioration, which led to the demobilization of about 560 workers who are responsible for their families.  

In a press conference with The General Manager of the Social Affairs and Labor Office in Lahj, Hassan Ali Kandash explained why the factories were closed.

He said that the ceramic factory closed its doors in October, and about 214 workers found themselves without jobs and financial rights. After several attempts of the workers to incite violence, it was decided to provide legal dues of workers at a minimum in the beginning of this year, according to the Labor Law.

Kandash said, iron factory was also closed officially in August as a result of its inability to work under the removal of subsidies on petroleum products. Workers demanded the factory management grant them their financial rights, but it laid off 184 workers.       

Kandash added that al-Suwaidi factory of cables laid off about 22 workers without paying any of the workers’ financial and legal dues, despite the communications of the local authority leadership with the Social Affairs and Labor Office.  

“Suddenly, last August, we received news from the factory management that it will close the factory permanently due to its financial losses and the bad economic situation,” he said.

According to Kandash, about 160 workers were demobilized from their jobs without their financial rights. The problem was when the factory was closed by the Commercial Court due to the loans that it didn’t pay to the National Bank. “This is considered a disaster for the workers, the factory, the bank, and the province as well,” he said.

 Kandash said that al-Sawary factory for red bricks was about to be bankrupt, but they could save it through changing its ownership and administration.