Job cuts in textile firm possible

Up to 700 workers at Denim Services Ltd in Bulebel risk being laid off unless the company gets new orders after losing a contract to produce jeans for Levi's, industry sources confirmed yesterday.

Denim Services Ltd employs about 850 workers and unless the company gets more orders it is unlikely to retain more than 150 of them, the sources said.

The industry has been under threat for quite some time now because of competition from countries where wages are substantially lower and also because of fast changing fashion trends. The sale of denim wear could plummet from one week to the next and if a company was working on a particular product that suddenly was no longer selling, cancellation of orders could result in severe job losses, the sources explained.

Denim Services Ltd dismissed 250 employees two years ago, following the cancellation of orders in August. Warm weather in Europe at that time had led to many opting to wear shorts, rather than jeans, and the local company suffered a loss of orders apart from cancellations.

It is understood that the General Workers' Union has already informed workers they could be laid off, although the number of job losses has not yet been quantified.