The Mauritian textile industry faces problems such as excessive labor costs and the outlook is worrying

According to mainstream media reports in Mauritius, many textile companies in Mauritius have experienced operating difficulties recently. New Island Clothing Company was forced to lay off 120 employees due to a sharp reduction in orders. 160 Indian workers at TEXTO Company went on strike collectively because they were dissatisfied with the company’s failure to arrange overtime work. As of the end of March 2010, there were 155 textile enterprises in Mauritius, a decrease of 10 compared with the same period last year. The shrinkage was the most obvious among various export-oriented enterprises.
Some operators in the Mauritian textile industry expressed concerns about the current status of the industry and said: Internationally, affected by the euro crisis, customers have become more cautious in placing orders; international textile price competitiveness has also become increasingly stronger, which has had an impact on Mauritius. Domestically, the high wages, low efficiency and high absenteeism rate of the local labor force in Mauritius have resulted in labor costs that are much higher than those in textile producing countries in Asia and countries in West Africa.
Despite this, some operators said that due to the suspension of Madagascar’s AGOA preferential treatment by the United States at the end of 2009, a large number of orders from the original Madagascar textile mills flowed to Mauritius. Therefore, most textile companies in Mauritius still had sufficient orders in 2010, but due to high labor costs, profit margins were very small. Small.