As a cascading effect of the indefinite strike by powerloom job working units in Tirupur and Coimbatore districts, a section of open end mills which supply yarn to these units have stopped production from today, seeking an immediate solution to the problem.
The open end mills (OEMs), numbering around 300 in Tamil Nadu, majority of which are in Coimbatore and Tirupur, supply yarn to powerloom units.
Since these units went on strike from January 28, there were unlifted stock of yarns worth Rs 100 crore lying in these mills, OEM association sources said.
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The mills produce 10 lakh kgs of yarn worth Rs 10 crore everyday and the stocks are now piling up in all the units, they said, adding that the production stoppage will affect nearly two lakh workers in the region.
Though the district collectors of Coimbatore and Tirupur held talks with the representatives of job working units and cloth manufactures, they failed to arrive at any agreement and the next round of talks are scheduled for tomorrow.
Meanwhile, the power loom units alleged that manufacturers have stopped paying them the increased wages of 27 per cent, as agreed in 2014, which had put them to a lot of hardship.
