Strike ends
According to local media reports, a strike by footwear traders in Agra, India, over a proposal to impose VAT on leathergoods has ended after 16 days, although the reason for the workers’ decision to return to work remains unclear.
Some of those that called the strike claim they have been forced to return to work due to the huge losses they were incurring as a result of remaining closed and the need to cash in their credit notes, which could not be done whilst the market was shut. However, others say that the strike was ended through a general consensus amongst traders that the local government had acknowledged their complaints and was considering revising its proposal.
As reported by www.leatherbiz.com on November 16, the strike began after the government put forward a motion to implement 12.5% VAT on the sale of all handmade shoes, whilst machine-produced footwear would only pay an additional 4%. According to those in the industry, this would have made Agra’s footwear uncompetitive and push many producers out of the market.
