Kerala government's labour department withdraws show cause notice to Kitex Garments

By

Isabelle Crossley

Published
Jul 8, 2021

The Government of Kerala’s labour department has withdrawn its show cause notice made to textile giant Kitex over the issue of minimum wages as the business receives offers to invest in other states. 

 
Kerala’s labour department had previously issued Kitex with a show cause notice seeking clarification regarding why Kitex Garments hasn’t implemented the minimum wages recommendations of 2019, ET Bureau reported. Kitex’s lawyer Blaze K Jose then wrote to the labour secretary to clarify that the High Court had stayed the recommendations through an interim order on March 26, 2021 and said that the assistant labour commissioner was in contempt of court. The labour department’s decision to drop its notice comes at a time when Kitex is looking to take its Rs 3,500 crore ($526 million) to another state. 

“I am to inform you that the government have given instruction to the Labour Commissioner Thiruvananthapuram vide letter date 7/7/21 to initiate quick steps to withdraw the notice dated 30/6/2021 issued to your client Kitex Garments Ltd,” the Kerala Department of Labour and Skills D Lal wrote to Kitex Garments in a communication, TNN reported. 

Kitex had complained about what it describes as harassment from officials in Kerala, including 10 raids on its premises, which appears to have contributed to its decision to withdraw its proposed investment in the state’s textile industry. Kitex has received formal offers from the state governments of Tamil Nadu, Telangana, and Karnataka offering financial incentives to invest in the state as well as around 10 unofficial communications from other states.