Star Knitwear Update 2025: Critical Government Actions & Insights

Star Knitwear Update 2025: Critical Government Actions & Insights

The Minister of Labour and Industrial Relations, Mr Muhammad Reza Cassam Uteem, held a press conference today at the Ministry’s headquarters in Port Louis to provide an important Star Knitwear update. This update sheds light on the ongoing challenges facing the company and details the government’s proactive measures to support affected workers. It reflects a commitment to transparency and the protection of employees’ rights during difficult times.

Background and Recent Developments on Star Knitwear Update

Minister Uteem reminded the public that in December 2024, the Cabinet formed an interministerial committee specifically to engage with Star Knitwear’s management. This committee’s goal was to find viable solutions for the operational and financial problems that plagued the company. Despite extensive discussions and attempts at resolution, the company proceeded to lay off approximately 196 foreign workers and 237 Mauritian employees in January 2025. These layoffs have had significant social and economic repercussions, highlighting the urgency of the Star Knitwear update.

Government Support and Worker Redeployment Efforts

In response to the layoffs, the Ministry quickly arranged for 218 Mauritian workers to join the Workfare Programme, providing essential financial support during this transition. In addition, efforts to redeploy workers were prioritized, resulting in 47 employees finding jobs with other firms. However, a notable number, around 99 workers, opted to return to their home countries. These multifaceted efforts underscore the government’s dedication to mitigating the negative impacts of the crisis, which are at the heart of the ongoing Star Knitwear update.

Financial Situation and Administration of Star Knitwear

Minister Uteem revealed that despite government interventions to sustain Star Knitwear, the company faces a daunting debt of approximately Rs 1.5 billion owed to multiple stakeholders, including the Mauritius Investment Corporation and the Central Electricity Board. This debt far exceeds the company’s asset value, which stands at about Rs 200 million. Consequently, the government decided to place Star Knitwear under administration. Mr Mustaq Oosman was appointed as Receiver Manager to oversee financial restructuring and thoroughly investigate any potential misappropriation of funds, particularly considering prior financial support from MIC and MauBank Limited.

Living Conditions and Support for Foreign Workers

The Minister also addressed concerns about the welfare of foreign workers residing in dormitories. He assured the public that the Receiver Manager has taken responsibility for maintaining adequate living conditions, including provision of sufficient food and cleaning services. The Ministry plans to facilitate the redeployment of foreign workers with valid permits and is actively working to assist those who wish to return home. This comprehensive approach is a key part of the Star Knitwear update, ensuring that vulnerable workers are not overlooked.

Future Steps for Mauritian Employees and Wage Guarantees

For the approximately 312 Mauritian employees still connected to Star Knitwear, the Redundancy Board will first determine their employment status. This is essential before registering these workers for the Workfare Programme. Furthermore, the Wage Guarantee Fund remains available to pay employees who have yet to receive their salaries, offering a crucial financial lifeline. These measures form an important component of the Star Knitwear update, aiming to protect workers’ rights and secure their livelihoods.

Additionally, the government is exploring long-term strategies to prevent similar crises in the textile sector. This includes engaging with industry experts and stakeholders to develop policies that promote sustainable business practices and worker protections. The ongoing Star Knitwear update reflects a broader commitment to strengthening Mauritius’s industrial resilience, ensuring that companies can better withstand economic challenges in the future.

Commitment to Transparency and Ongoing Monitoring

The government has committed to maintaining transparency throughout the administration process of Star Knitwear. Regular updates will be provided to the public, ensuring that the situation remains closely monitored. This openness aims to build trust and reassure workers and stakeholders that decisive actions are being taken to resolve the crisis responsibly.

In parallel, efforts are being made to engage with international partners and investors who might be interested in revitalizing Star Knitwear. Such collaborations could bring fresh capital and expertise, potentially leading to the company’s turnaround. This aspect of the Star Knitwear update highlights the government’s proactive approach in seeking sustainable solutions beyond immediate relief measures.

Impact on Mauritius’ Industrial Sector and Economy

The Star Knitwear update is not only critical for the company but also reflects wider implications for Mauritius’ industrial sector. The challenges faced by the firm highlight vulnerabilities in the textile industry, prompting discussions on strengthening economic resilience. Government initiatives arising from this update may influence future policies designed to safeguard jobs and encourage sustainable industrial growth in Mauritius.

Moreover, the Star Knitwear update serves as a catalyst for broader conversations about workers’ welfare and labor rights in Mauritius. It brings attention to the importance of social protection programs and the need for effective safety nets for employees in vulnerable sectors. Policymakers are now considering how to implement more robust frameworks that can better support workers during industrial downturns, ensuring their dignity and financial security.

For further insights on industrial developments in Mauritius, visit our related article on Mauritius Industrial Growth.

More information about government interventions and social programs can be found on the official Government of Mauritius website.

Conclusion: The Importance of the Star Knitwear Update

The Star Knitwear update serves as a vital communication tool to keep the public informed about the evolving situation. With the government actively engaged in managing the company’s difficulties and prioritizing worker welfare, the update reinforces the necessity of collaborative efforts. Moving forward, sustained focus on transparency, financial restructuring, and social support will be essential to stabilizing Star Knitwear and protecting Mauritius’ workforce.