Strike action escalates
According to local sources a strike by footwear traders in Agra, India, is likely to continue indefinitely as traders in non-leather shoes have also joined the action and decided to shut up shop.
The strike began several days ago as manufacturers, unions, associations and workers walked out in protest at the Uttar Pradesh government’s plans to impose VAT on leathergoods. If implemented, those involved in the production of handmade shoes would be forced to pay an additional 12.5% on all sales, whilst machine-produced footwear would only pay an additional 4%. According to those in the industry, this would make Agra’s footwear uncompetitive and push many producers out of the market.
Producers of plastic and rubber-soled footwear have now also joined the action, protesting over the large quantities of Chinese-made plastic-moulded footwear now on the market in India.