The workers halted production, putting forth several demands, including issuance of appointment letter. A Unilever official said the outsourced workers have also halted exports.

The industry is facing multiple problems due to the sudden disruption. While it is facing space crunch to store finished goods, it is not being able to resume production due to the lack of raw materials. The factory, which had cut production since Tuesday, has completely halted the production since Friday. The outsourced workers, who have been staging the protest for the last one week, are visiting the factory just to sign the attendance register.

The industry has been facing more than Rs 4.5 million in daily losses due to the closure. Other demands of the workers include appropriate compensation to workers who cannot be given a permanent status due to factors like age, and an end to the provision of contract and daily wages.

The company has been saying it cannot fulfil the demands as the workers are not associated with it, but with an outsourced company. It has asked the workers to put the demand before the company from where they have been outsourced. An agitating worker, Rameshwor Upreti, said peace talks between the Chamber of Commerce, Unilever management and the outsourcing agent has not yielded any result.

The industry has also urged the government to create conducive environment for smooth operation of the factory. One of Unilever investors has even said the factory would be forced to close down if such activities continue. The government has directed the local administration to resolve the issue and create a favourable environment to resume the factory operation.

If the industry closes down, around 900 individuals receiving direct employment through five Unilever subsidiaries will lose their jobs. Most of the investors of the subsidiary companies like Ganga soap, National soap, Omkaar soap and Unique soap are locals. The number of agitating outsourced workers is 29.

Established in 1993, the industry has 140 permanent and temporary workers. It produces products like Lux, Lifeboy and Liril soaps, Pepsodent and CloseUp toothpaste and Fair&Lovely fairness cream. Unilever posted a transaction of Rs 4.72 billion last year and earned a profit after tax of Rs 830 million.