![]() Financial Daily from THE HINDU group of publications Saturday, Feb 02, 2002 |
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Industry & Economy
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Jute Bengal jute industry yet to recover from labour crisis Kohinoor Mandal
KOLKATA, Feb. 1 THE jute industry of West Bengal is yet to recover from labour woes though the strike called by the central trade unions has been averted with the signing of a tripartite wage agreement. Industry sources said the sector was still suffering from poor demand both in the domestic and international markets. As a result, prices in the raw jute market also remained subdued and there was a distinct lack of sellers. The industry's major customer, Food Corporation of India, is yet to purchase its full requirement of jute bags required for the packing of the rabi crop. The industry is expecting that the order will be released soon so that it matches the purchase level of last year. However, the most troublesome issue continues to be labour. Earlier this month, the State Government helped the sector ward off an indefinite strike threat called by the 18 central trade unions. After several rounds of discussions, a wage agreement was signed between the trade unions and the mill owners, which, for the first time, incorporated a productivity clause. All the central trade unions were party to the agreement; yet the deal has not been accepted by all the workers. In fact, the deal was opposed by two unions the Bharatiya Mazdoor Sangh (the trade union wing of BJP), and the Lenin Sarani wing of UTUC. These unions are so critical of the productivity-linked wage agreement even today 10 to 11 mills of the 59 mills in the State continue to be closed. "It will probably take some time to resolve the crisis," industry sources said. Trade unions supporting the agreement said it was pro-labour because it assured confirmation in service of around 40,000 temporary workers. "Moreover, only 33 per cent of the wage is linked to productivity," a trade union leader said. Meanwhile, there is a strong possibility of a change of guard at the Indian Jute Mills Association. The current Chairman, Mr Sanjay Kajaria, has repeatedly urged members to relieve him of his charge. He has been heading the millowners body for over three years. Talking to Business Line, Mr Kajaria said his current tenure would end in March 2002. "Thereafter, the members would have to decide on who would be the next chairman,'' he said.
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