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Mon, 27 April 2015 04:25:19
Sri Lanka tableware exporter makes June quarter loss after labour problems
28 Aug, 2008 14:54:22
Aug 28, 2008 (LBO) - Sri Lankan tableware exporter Dankotuwa Porcelain, whose production was disrupted by a strike by workers, made a net loss of 43 million rupees in the June quarter.

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The company made a net loss of a million rupees in the same period a year ago.

Interim results released by the firm showed that sales for the June quarter fell 6.8 percent to almost 300 million rupees from 322 million rupees a year ago.

The net loss for the first half ending June 30 was 42 million compared with a net profit of two million rupees in the same period a year ago while sales were almost the same at 658 million rupees.

"The company experienced a work stoppage and labour unrest during May and June," Dankotuwa said in a note accompanying the accounts.

"Now this has been resolved satisfactorily."

Dankotuwa's sales suffered in May and June when a strike disrupted manufacturing operations, forcing it to slow down its kilns, reschedule production and delay shipments.

The labour trouble erupted when the management changed a bonus payment scheme and froze the cost of living allowance that it found unsustainable to pay in a high inflation environment.

Inflation hit a record near 30 percent earlier this year although it has now begun to come down.

A deal with labour unions with the intervention of the labour ministry helped Dankotuwa resume production. .
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