Garment Industry Unrest: HR Lessons from the Sumithra Hasalaka Factory Dispute
Introduction
At the beginning of 2024, employees of the Sumithra Hasalaka garment factory in Sri Lanka also held a strike due to low wages and the beating of union members, which caused a reminder of the long-standing labour-management conflict in the apparel sector (Clean Clothes Campaign, 2024). Being one of the most important export industries in Sri Lanka and employing more than 350,000 people (the majority of whom are women), the image of the industry and its ability to become competitive on the global market are largely determined by effective HR practices (ILO, 2023). This event shows a disconnection between policy and practice in industrial relations and confronts HR professionals to ensure fairness and voice by employees.
Discussion
Failure to deal with wage issues or union representation also triggered the entire walkout, which demonstrated the failure of the HR department to have good conflict resolution practices. Arnold and Taylor (2023) emphasize that transparent communication, equitable pay mechanisms and grievance mechanisms are needed to keep the relationship between employers and employees at a high level of trust. However, most factories see HR as an element of assisting production and not as a strategic partner in employee relations.
The studies conducted by the International Labour Organization (ILO, 2023) emphasize that ethical leadership and worker empowerment are the key to sustainable HRM in exporting businesses. The HR in the case of Sumithra did not offer a neutral platform where dialogue could occur as a result of which mistrust and damage to reputation were caused. This might involve a preventive HR policy which involves auditing social compliance, providing mental health assistance and continuous supervisor training on professional communication (Armstrong and Taylor, 2023).
Furthermore, as the global consumer is increasingly focusing on the Environmental, Social, and Governance (ESG) criteria, the Sri Lankan garment companies will have to incorporate the HR ethics in their employer branding to maintain investor and buyer trust. The Sumithra strike shows that the lack of attention towards employees can lead to the loss of their competitiveness in the global marketplace (Clean Clothes Campaign, 2024).
https://youtube.com/shorts/1IXZ9KQSlDc?si=z7J3bxj2SsoxoNqAConclusion
The Sumithra Hasalaka factory wrangle provides an imperative HRM learning: employee voice and ethical HR management are inseparable to the harmony in industries. In order to remain a reputable exporter of apparel within the country, the HR professionals have to shift to being more of strategic partners who promote fairness, inclusivity, and open communication.
References
Armstrong, M. and Taylor, S. (2023) Armstrong’s Handbook of Human Resource Management Practice. 16th edn. London: Kogan Page.
Clean Clothes Campaign (2024) Workers’ Rights Violations at Sumithra Hasalaka Factory, Sri Lanka. [Online] Available at: https://cleanclothes.org/ [Accessed 29 Oct 2025].
International Labour Organization (ILO) (2023) Sri Lanka Garment Sector Employment Report. Colombo: ILO Country Office.
Excellent analysis of the Sumithra Hasalaka strike and its HR implications. Emphasizing transparent communication and grievance mechanisms aligns well with sustainable HRM practices. It would be interesting to explore how ESG pressures could accelerate ethical HR adoption in Sri Lanka.
ReplyDeleteThank you for this excellent feedback, Gihani! I'm glad you saw the connection between the strike and the need for transparent communication and effective grievance mechanisms. That is key to sustainable HRM. Your idea to explore how ESG pressures could accelerate ethical HR adoption in Sri Lanka is brilliant—that's certainly a topic worth investigating further!
DeleteThis is a well-organized and insightful piece. You’ve clearly connected a real incident to key HR concepts like ethical leadership, employee voice, and conflict resolution. The discussion is relevant and shows a good understanding of how HR practices impact both employee relations and organizational reputation.
ReplyDeleteThank you so much, Ishanka! I appreciate your kind words about the organization and insight. My goal was precisely to use a real incident like this to clearly demonstrate how core HR concepts—especially employee voice and ethical leadership—directly impact both internal employee relations and the external organizational reputation.
DeleteThat is a profoundly true statement, Dilmini. You've perfectly articulated the core takeaway: HR is far beyond managing payroll or attendance—it is fundamentally about managing trust. The Sumithra Hasalaka case serves as a powerful reminder that HR's ultimate function must be the moral compass of the organization, not merely the administrative arm of management. Thank you for sharing such a vital perspective.
DeleteThis dispute really highlights how HR isn’t just about managing attendance or payroll—it’s about managing trust. When workers feel unheard or unsafe, no policy manual can fix that. The Sumithra Hasalaka case is a reminder that HR must be the moral compass of the organization, not just the administrative arm of management
ReplyDeleteDilmini, you are absolutely right—HR must serve as the moral compass of the organization. When workers feel unheard, no policy manual can repair the damage to trust.
DeleteYour blog addresses a highly relevant labor issue in Sri Lanka’s apparel sector. It successfully connects a real-world event to HRM principles and draws lessons for HR professionals. The use of credible sources like ILO and Clean Clothes Campaign strengthens the authority of your work. The blog is well-structured, covering introduction, discussion, and conclusion logically.
ReplyDeleteGood post — you clearly show how labour‑management conflict can damage trust, productivity, and even innovation in an organisation.
ReplyDeleteKalani, I appreciate your validation that this labor issue successfully connects real-world events to core HRM principles. This case clearly shows how labor-management conflict can drastically damage trust, productivity, and even innovation.
DeleteReading about the Sumithra Hasalaka factory dispute, I’m reminded how fragile trust becomes when employee voice is ignored. In hospitality, we know that staff wellbeing directly shapes guest experience—when our teams feel respected, they create memorable service. The garment industry unrest shows the same truth: wages, fairness, and dialogue are not just HR issues, they are the foundation of competitiveness and reputation. As hoteliers, we must take this lesson seriously—HR cannot remain a back-office function. It must be a strategic partner that protects dignity, empowers people, and builds sustainable success. Whether in a hotel or a factory, ethical HR is the bridge between employee harmony and business excellence.
ReplyDeleteYour parallel with the hospitality industry is powerful and essential. It shows that employee well-being is not just a "back-office" function; it is the foundation of competitiveness and reputation. Whether in a factory or a hotel, ethical HR is the critical link between employee harmony and business excellence.
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