The UK retail giant NEXT has been accused of escalating anti-union activity in Sri Lanka after halting wage payments to 16 workers contesting the closure of the company’s own factory in Katunayake.

The FTZ & GSEU trade union reported that NEXT had violated Sri Lankan labour laws by withdrawing salaries from the workers, who were challenging the factory’s closure at a hearing before the Sri Lanka Labour Commissioner.

The union stated that the factory, which employed 1,416 workers, had been closed on May 19 without any consultation, despite NEXT having signed a Collective Bargaining Agreement with FTZ & GSEU.

The union claimed that NEXT had misled the majority of workers into signing voluntary resignation letters to receive compensation.

Sixteen workers had refused to resign and subsequently filed a complaint for unlawful termination. The union said that NEXT had continued paying their basic wages until recently, but at a hearing on September 3, the company’s lawyers had confirmed that payments to these workers had been stopped as of 20 August.

The lawyers reportedly argued that this did not constitute a termination of employment. The Commissioner of Labour had concluded that there was a prima facie case of unlawful termination for NEXT to answer.

The FTZ & GSEU and international allies, including the Clean Clothes Campaign, called on NEXT to immediately restore wage payments and engage with the union over the factory closure.

NEXT has not responded publicly to the allegations.

‘This latest violation shows NEXT’s disregard for workers who contributed to their record-breaking profits of £1 billion this year,’ said Anton Marcus, Joint Secretary of FTZ & GSEU. ‘Our members in Katunayake have lost not only their jobs but also trust in NEXT due to their union-busting tactics. Refusing payment while a complaint is ongoing is an unlawful termination of employment. We will continue to fight for justice and for the company to honour genuine workers’ rights.’

The halted wages are expected to cause severe economic hardship for the affected workers, ten of whom are women and the sole breadwinners in their families.

As their employment contracts remain technically active, they are unable to seek alternative work and are effectively blacklisted locally due to their union activities.