As many as 225 open end spinning mills in the State that employ nearly 40,000 workers directly are on strike from Wednesday as yarn stocks have piled up at the units because of the ongoing powerloom strike. G. Arulmozhi, secretary of the association, told ‘The Hindu’ that the mills in Coimbatore, Vellakoil, Madurai, Aruppukottai, Rajapalayam, Erode and Udumalpet produced mainly coarse count yarn used in the powerlooms. About three lakh powerlooms in Coimbatore and Tirupur districts were on strike from August 5 protesting against the reduction in wages for the job workers.
Nearly 50,000 of these were expected to resume operations from August 17. The powerloom strike had resulted in yarn stocks increasing at the mills. Mr. Arulmozhi said the mills produced goods worth Rs. 5 crore a day and the yarn stocks with the mills were worth nearly Rs. 50 crore. If the mills continued production, it would only lead to further loss. Hence, it was decided to stop production.