The factory was padlocked for nearly eight months by Youth Association, Gorkha, following dispute over recruitment process. The association padlocked the factory after the management fired eight workers associated with it following pressure from local community.[break]
“The factory was in operation for just 32 days till mid-April 2012. In total, it was operational for 56 days in fiscal year 2011/12,” Dinesh Kumar Bartaula, managing director of Gorakhkali Rubber Factory, said.
Recently, the factory was padlocked for 14 days by a group named ´Save Gorakhkali Rubber Factory´ to protest recruitment of new employees. The group said it padlocked the factory after the management violated agreement signed with it to prioritize locals in the recruitment process.
Less than a week after it resumed operations, laborers padlocked the factory demanding additional benefits and incentives.
“We have lost around Rs 120 million because of frequent closures,” said Bartaula.
The factory has the capacity to produce 80,000 big and 40,000 small tires annually. However, it could produce only 12 percent of its total production capacity in the last fiscal year due to frequent closure of the production unit.
Bartaula said shortage of raw materials could force the management to shut down production very soon. “Our stock is fast depleting. We might have to shut down production if we failed to replenish our stock,” he added.
The factory must production at least 55 percent of its total capacity to cover its operating cost. Unfortunately, it has not managed to produce more than 45 percent of its installed capacity over the past 26 years.
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