World Knits Workers Reject Liquidation After 30 Years of Service
374 out of 405 workers voted against liquidation at World Knits Limited, demanding unpaid wages and proper severance after decades of employment.
Workers at World Knits Limited, a textile manufacturing company in Mauritius, have overwhelmingly rejected the prospect of liquidation, refusing to leave without firm guarantees that their rights and years of service will be protected.
In a vote held on Friday, 374 of the 405 workers polled came out against liquidation, with only 31 voting in favour. For many of these employees, the stakes are deeply personal. Some have worked at the company for up to 30 years and fear walking away with little to show for it.
At the centre of the dispute are four to six months of unpaid wages, severance pay, and the formal recognition of long service. Workers have rejected the Rs 28,000 payout offered through the Workfare Programme, a government safety net designed to support retrenched employees, saying the amount falls far short of what they are owed.
Union representative Ashraf Peerbaccus stated that close to 98 percent of the workforce has been placed on technical unemployment, meaning they are not currently working but remain nominally employed while the company's future is decided.
A proposed sale of the company, valued at Rs 450 million and reportedly targeting American investors, has added to workers' anxiety. Employees are concerned that their interests will not be adequately protected if the transaction goes ahead without clear legal commitments.
Labour Minister Reza Uteem has confirmed he is monitoring the case, particularly in relation to the Pre-Retirement Gratuity Fund, known by its French acronym PRGF, which is administered alongside the Mauritius Revenue Authority. He noted that Rs 55 million had already been disbursed toward salary payments, though workers say much more remains outstanding.
Workers are now calling on the Prime Minister to intervene directly to prevent what they describe as a looming social crisis and to ensure their rights are secured before any further steps toward liquidation or sale are taken.
What this means: This case highlights the vulnerability of long-serving workers in Mauritius when a private company faces insolvency or a change of ownership. Under Mauritian labour law, employees are entitled to severance pay, end-of-year bonuses, and other benefits accrued over their years of service. When a company enters liquidation, those claims can be difficult to recover without government intervention or strong union pressure. The outcome of the World Knits situation could set a precedent for how similar industrial disputes are handled in the country.
Source: ION News
Frequently Asked Questions
What is the Workfare Programme in Mauritius?β
The Workfare Programme is a Mauritian government scheme that provides a financial safety net to workers who lose their jobs due to company closures or retrenchment. It offers a one-off payment to affected employees, but critics argue the amount, currently Rs 28,000 in this case, is insufficient to compensate for long service or unpaid wages.
What rights do retrenched workers have in Mauritius?β
Under the Employment Rights Act in Mauritius, workers who are made redundant are entitled to severance allowance based on their years of service, as well as any outstanding wages and other accrued benefits. Workers with decades of service, like those at World Knits, can be owed substantial sums that the Workfare Programme alone does not cover.
What is the PRGF and how does it relate to the World Knits case?β
The PRGF, or Pre-Retirement Gratuity Fund, is a fund managed in conjunction with the Mauritius Revenue Authority that helps protect worker benefits when employers face financial difficulty. Labour Minister Reza Uteem confirmed the government is monitoring the World Knits case through this mechanism, and noted Rs 55 million had already been used to cover some salary payments.
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