"Textillegprom" Proposes to Toughen Penalties for the Use of Illegal Foreign Labor in the Garment Industry
According to her, the key problems faced by sewing enterprises are related to product sales and financial issues, which significantly affect their competitiveness in terms of price and quality. "All problems boil down to one thing: sales and money. We cannot compete in the market due to prices and quality," Atabekova noted.
She added that for the successful development of the industry, it is necessary to create suitable conditions and ensure access to labor, including foreign workers. However, the existing fines, in her opinion, are not strict enough. "The legislation in our country is too weak, and many companies have started to lure in foreigners invited to work," emphasized the head of the association.
Atabekova proposed amendments to Article 93 of the Code of the Kyrgyz Republic on offenses, noting that the current fine for legal entities is 650 calculated indicators (65,000 soms), which is not a serious deterrent.
"For tailors, the amount of 65,000 soms is insignificant. They can simply view it as a fine and continue to violate the law," she added.
As a result of this situation, there is dumping, the number of skilled workers in honest companies decreases, the share of the shadow economy increases, and tax revenues are concealed.
As an example, Atabekova cited practices in Russia, where fines for legal entities can reach 1 million rubles for each illegal worker, and an administrative suspension of activities for up to 90 days is additionally applied. "No one wants to risk losing their business," she noted.
The head of the association also voiced unofficial data on the scale of the problem, mentioning that 72% of enterprises resort to using illegal labor and foreign labor.
She reported that "Textillegprom" is ready to present a draft law to the deputies.
Pointing out that creating a separate ministry for the industry is excessive, Atabekova stated: "This will lead not only to bureaucracy but also to unnecessary expenses for the state."
She also raised the issue of risks associated with opening sewing enterprises by non-residents. In her opinion, foreign companies, having financial resources and operating under the same conditions as local ones, can undermine competitiveness and lead to capital outflow from Kyrgyzstan. "This creates huge opportunities for violating competition legislation and can lead to significant capital losses," she concluded.
In conclusion, Atabekova emphasized that the proposed changes in two directions—tightening responsibility for the use of foreign labor and regulating the work of non-residents—could significantly improve the situation in the industry. "Amendments to the legislation in these two areas will be an important step in the development of the textile and garment industry," she summarized.
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