Garments face threat without GSP plus

Ramani Kangaraarachchi

Some companies in Sri Lanka do not concentrate sufficiently on human resource values but the Director HR and Administration of Polytex Garments Maithree Bandaranaike believes in adding more HRM values to the company to develop people to be able to face new challenges and get better results.

According to him that is the best way to uplift efficiency levels of workers which Sri Lanka needs very badly at present. He was interviewed by the Daily News Business.

Q: How do you operate in Sri Lanka?

We are a leading manufacturer of garments enjoying BoI facilities with a workforce of 5000 based in four factories in Ja-Ela, Yakkala, Kegalle and Koggala. We export high quality garments mainly to USA, Japan, China, London and Vietnam and Malaysia.

I am responsible to the Chairman based in Hong Kong which is our headquarters.

Q: Did you have any experience in the apparel industry before joining this company?

Yes. After my A/Levels at Royal College, Colombo. I joined the private sector and worked for several multinational companies such as John Keells, Brandix and Mackwoods for about 13 years. I gained a lot of experience on the job while doing my higher studies at the same time.

Human resource management is my area which I started from the Open University. But I gained knowledge and experience on the apparel industry initially from a world group and then from Brandix where I served for three years.

Q: How did you get the opportunity to join Polytex Garments and what are the challenges you are facing?

I was given the opportunity to serve this company, as Sri Lanka is facing challenges in this industry. Because from 2005 we don’t get the quota concession we enjoyed before when exporting our products to USA and Canada.

Now we need to compete with the rest of the countries in the world for orders. The challenges are increasing day by day.

The GSP plus facility is also going to be taken away from October this year. So much of efforts are now being made to convince the international community and the Sri Lankan Government about the importance of having this facility.

I myself as a council member of the Apparel Association is lobbying the Government to look at the importance of the GSP plus facility. The industry will not be able to survive without it. Another challenge is the cost of production which is increasing rapidly. It is a serious situation.

Q: What are the chances of GSP plus getting extended and what will happen in the event of it is not extended?

Chances are fifty fifty. In Sri Lanka as far as the requirements of the industry to survive we possess very high standards. But we have fallen behind in two areas. One is our efficiency levels and the other is economic and political situation in the country. As a nation we need to improve our efficiency levels.

It stands at 40-50 per cent whereas Vietnam and China is well above at 80 per cent. This gives an additional advantage to our competitive countries who could offer lesser prices for our customers.

This is a serious situation. But the GSP plus is a technical term relevant to human rights. It has nothing to do with the industry.

We are far ahead with other compliances such as work environment, salaries and ethical labour force That is why we request the Government to take serious concern about it.

Four hundred small scale garments had to be closed down since 2005. Survival opportunity is only with the medium and large scale manufacturers.

Because when the GSP plus is taken away profit margins will go down and some companies will not be able even to meet the break even point resulting more closures of companies. Then the impact on the economy also will be much more greater.

Q: What do you propose to increase efficiency levels that our industry is lacking?

Unfortunately, Sri Lankan workers are paid on the number of work hours not on a performance basis as other countries do.

In Vietnam, the entire earning levels are based on piece rate. This is a great disadvantage for us. We have to change this system by adding value to HRM.

That is why I am saying that Sri Lanka has failed looking at HR sufficiently. Our country has not identified the huge opportunity cost involved here. The traditional thinking of the country and concern on welfare is another barrier in implementing certain things.

Q: What are the welfare measures operating in the company?

We give free breakfast, dry ration packs, transport and medical facilities. Payment of annual bonus, advance and library facilities are also provided.

Q: How do you like to spend your retirement?

I like to be a business consultant once I retire.

Bio-data

Director HR and Administration of Polytex Garments
Educational Qualifications: LLB (Colombo), MBA (Sri Jayawardhanapura University)
Council Member of Sri Lanka Apparel Association.
Alternate representative to Sri Lanka Exporters Association for the Apparel Association.
Father of one daughter; wife is a housewife.
Played rugby, boxing and athletics in school.