The Tirupur Exporters Association (TEA) has urged the centre to withdraw the amendment made on withdrawal of employees’ contribution to provident fund after attaining the age of 58.

In a letter to union minister of state for labour and employment, Bandaru Dattatreya, TEA president A. Sakthivel said the notification has created an alarming situation in Tirupur cluster and particularly, North Indian workers have already resorted to strike in three units and are asking the management somehow to settle the contribution made by both employees and employers immediately. It has now become a severe task to the managements to convince the workers about the decision of the government.

Sakthivel appealed to the minister to withdraw the amendment immediately and permit the workers to get employers’ contributions also while leaving the job instead of waiting to do so after becoming 58 years old.

He said the notification has led to complaints from workers, most of whom are migrant from neighbouring states as we as North India. He also said that there is a fear of labour exodus. The strikes in a few units have started to hit the industry.

“Due to this, the production got affected and the units would also face the difficulty in meeting the export delivery schedule and these units may not only incur financial losses but also future orders. As a consequence of this, there are more possibilities for laborers leaving Tirupur and they could not wait till 58 years to receive the employer’s contribution,” Sakthivel said in his letter.

A labour exodus would seriously hit the export industry which currently generates a revenue of Rs.23,500 crore, the Association president said.