Financial Daily from THE HINDU group of publications Wednesday, Jan 07, 2004 |
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Agri-Biz & Commodities
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Jute Jute mill workers protest Govt move to dilute packaging orders Kohinoor Mandal
Kolkata , Jan. 6 JUTE mill workers who have been on an indefinite strike from December 29, with an eight-point charter of demands placed before the mill owners, are burning plastic bags in front of closed mills. Trade unions leaders explained that they were protesting the Union Government's decision to dilute the mandatory packaging orders. The main demands of the 15 central trade unions that had called the strike in the West Bengal jute industry, however, are higher dearness allowance, payment of bonus, provident fund and Employees State Insurance. The strike is already nine days old and the West Bengal jute industry, which manufactures more than 95 per cent of the total national jute goods production, has lost more than 4,000 tonnes of production every day. It is well known that the jute industry is facing stiff competition from plastic bag manufacturers in the packaging sector and has already lost major consuming industries such as cement and fertiliser to its competitor. At present, it is enjoying a monopolistic market in the sugar and foodgrains sectors due to the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987. The Union Textile Ministry has already proposed to dilute the mandatory orders. The matter has been referred to the Supreme Court. On Tuesday, it was heard but adjourned for two weeks. In this scenario, an industry-wide strike is unfortunate because the Union Government is citing it as the reason for diluting the mandatory orders. "If that happens, then 50 per cent of the industry will have to pull down the shutters," Mr Sanjay Kajaria, President of the Indian Jute Mills Association, told Business Line. The workers are aware of this impending danger but they blame the mill owners for not accepting their demands and in the process pushing the industry to a precarious position. Meanwhile, the trade unions are burning plastic bags after their gate meetings at the closed mills. Incidentally, the plastic bag industry is a major gainer of this strike. Sources said sections of the sugar industry have gone against the legislation and have already indented for plastic bags as they fear that there might be a shortage of jute bags. "Our demand is not restricted to our DA or bonus. We are against the dilution of the mandatory packaging order too," Mr Ganesh Sarkar, General Secretary of the INTUC-affiliated union, said. Mr Kajaria called the burning of plastic bags a ridiculous act. Instead, he felt that the trade unions should have filed a petition against the proposed dilution of the mandatory orders at the Supreme Court. Mr Debasish Dutta, representative of AITUC's jute workers wing, said it "boosted the striking workers' morale". As for the strike itself , the West Bengal Government has called separate meetings on Wednesday with the trade unions and the mill owners and then a tripartite meeting.
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