Star Knitwear Update: 5 Urgent Actions Announced by Minister Uteem
A critical Star Knitwear update was delivered today by the Minister of Labour and Industrial Relations, Mr Muhammad Reza Cassam Uteem, during a press conference held at the Ministry’s headquarters in Port Louis. The announcement comes amid growing concerns over the future of the garment manufacturer and its workforce.
In a clear and measured tone, Minister Uteem outlined five immediate actions aimed at stabilizing the situation at Star Knitwear, one of Mauritius’ long-standing textile companies. “Our priority is to protect the livelihoods of workers while ensuring compliance with industrial regulations,” he stated.
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Minister Uteem’s Full Statement: Key Highlights
Immediate Intervention Measures Announced
The Star Knitwear update began with Minister Uteem confirming that the Labour Ministry has launched a formal inquiry into the company’s financial and operational status. This investigation will be conducted in collaboration with the Financial Services Commission and the Mauritius Revenue Authority.
The first of the five urgent actions involves the deployment of a tripartite team — composed of government officials, union representatives, and industry experts — to assess working conditions and ensure no employee is unlawfully dismissed during this transitional phase.
Minister Uteem emphasized that all workers are entitled to their rights under the Employment Rights Act, and any violation will be met with strict legal consequences.
Support for Affected Employees
As part of the Star Knitwear update, the Minister announced the activation of the National Adjustment Programme (NAP), which will provide temporary financial assistance and retraining opportunities for employees at risk of redundancy.
“We are not just managing a crisis — we are building a safety net,” Uteem said. The NAP will offer vocational training in high-demand sectors such as digital services, tourism, and healthcare, helping workers transition to new careers.
On our labour rights hub, we provide detailed guides on employee entitlements and government support programs during industrial transitions.
Background: The Challenges Facing Star Knitwear
Decline in the Textile Sector
The current Star Knitwear update must be understood within the broader context of the declining textile industry in Mauritius. Once a cornerstone of the national economy, the sector has faced severe challenges due to global competition, rising production costs, and shifting trade agreements.
According to a 2024 report by the Central Statistical Office (*source here*), employment in the textile and apparel sector has dropped by 37% over the past decade.
Star Knitwear, established in the 1980s, has struggled to maintain profitability amid these pressures. Recent audits suggest the company has accumulated significant debt and is operating below 40% capacity.
Worker Concerns and Union Involvement
Workers at Star Knitwear have expressed growing anxiety over unpaid wages and the potential closure of the factory. Last week, a peaceful protest was held outside the Ministry of Labour, with employees demanding transparency and job security.
The General Workers’ Union (GWU) has formally engaged with management and government officials, calling for a moratorium on layoffs and the establishment of a restructuring committee.
The union welcomed the latest Star Knitwear update as a positive first step but stressed that long-term solutions are needed to preserve jobs and revitalize the sector.
Government’s Five-Point Action Plan
Action #1: Financial Audit and Transparency
The first pillar of the Star Knitwear update is a comprehensive financial audit to determine the company’s liabilities, assets, and potential for recovery. This audit will be made public in redacted form to ensure transparency while protecting sensitive commercial data.
The findings will inform whether the company can be restructured, merged with another textile firm, or liquidated in an orderly manner.
Action #2: Wage Protection Mechanism
To address immediate worker concerns, the government will establish a wage protection fund. This mechanism will ensure that employees receive their salaries on time, even if the company faces temporary cash flow issues.
The fund will be co-financed by the state and private sector partners, with oversight from the Labour Department.
Action #3: Restructuring and Investment Incentives
The government is exploring options for restructuring Star Knitwear, including attracting strategic investors or converting the facility into a green manufacturing hub.
Tax incentives and grants will be offered to any entity willing to take over operations and retain at least 70% of the current workforce.
Action #4: Skills Development and Retraining
Recognizing that some job losses may be unavoidable, the Ministry will expand its retraining programs in partnership with technical colleges and private training providers.
Courses in digital marketing, garment design, and automation will be prioritized to align with future industry needs.
Action #5: Long-Term Industrial Strategy
Beyond the immediate Star Knitwear update, Minister Uteem announced the formation of a National Textile Revitalization Task Force. This body will develop a 10-year strategy to modernize the sector, promote innovation, and integrate sustainable practices.
“We cannot save every factory,” Uteem admitted, “but we can ensure that the textile industry evolves to remain competitive.”
Public and Media Reaction
Media Coverage and Public Sentiment
The Star Knitwear update dominated local news cycles, with live broadcasts of the press conference on radio and television. Social media platforms saw a surge in discussions, with hashtags like #SaveStarKnitwear and #WorkersOfMauritius trending on X and Facebook.
Public opinion is divided: while many praised the government’s swift response, others criticized the lack of prior intervention and called for stronger oversight of struggling industries.
Expert Opinions on the Way Forward
Economists have welcomed the five-point plan but caution that structural reforms are essential. Dr. Anita Ramdhani, an industrial policy expert at the University of Mauritius, stated: “Short-term relief is necessary, but without investment in technology and skills, the sector will continue to decline.”
She recommended greater integration with regional value chains and a focus on high-end, sustainable fashion to differentiate Mauritian products in global markets.
Images and Alt Text Optimized
Image 1: Workers outside Star Knitwear factory holding signs
Keywords for image: Star Knitwear update, Star Knitwear protest, Mauritius garment workers, textile industry crisis
Image 2: Minister Uteem speaking at press conference in Port Louis
Keywords for image: Star Knitwear update, Minister Uteem statement, Labour Ministry Mauritius, Port Louis press conference
Source of the article: https://allafrica.com
