‘It was a business decision’

I am very saddened to learn of the layoff of more than 100 employees in the garment industry. I feel for those employees and their families, who will undoubtedly experience some very difficult times ahead.

As someone who has experienced the hardships of unemployment, I know what they must be going through right now and I really feel for them. It is very painful and frustrating not to be able to provide for yourself and your family, and I’m very sorry for them. I hope they all find good jobs soon.

At the same time, I also feel very sad that the company that implemented the layoffs is being unfairly blamed for a decision I am sure they didn’t want to make but was necessary. I believe it is very difficult for employers to have to lay people off, even if it is due to global economic forces beyond their control.

It’s not easy letting people go, but businesses sometimes have to make tough decisions in order to survive and ensure the continued employment of their other employees. Unlike governments, which rely on taxes paid, businesses cannot survive without making a profit.

The garment company, L&T in this case, had to make an extremely tough decision based on the smaller profit margins expected as a result of intense global garment industry competition, where some workers are paid less than a dollar per hour in the developing world. Unfortunately, our local garment industry has to compete against so many countries that don’t have the standards and aren’t subject to the scrutiny that we are. This will only get worse as we move into 2005 and the WTO rules come into effect, thereby reducing our No. 1 tax-generating industry’s competitive advantage.

I’m really worried about our employment prospects as our garment industry struggles with the effects of the 2005 WTO rules eliminating garment import quotas. Things could get worse, and I’m afraid there may be more layoffs, possibly even in government, if garment taxes fall even further, as expected.

I hope that our elected leaders will work very hard to help our vulnerable garment industry, instead of unfairly blaming it or ignoring it, as it struggles through this very difficult period, so that layoffs are minimized. We owe it to our local employees.

Michael Geisinger
Chalan Piao