Kanoria Jute Mills, which had been lying closed for over five years, will be reopened on August 22. Full-fledged operations will, however, commence only on September 10 this year, Mr Purnendu Basu, the State Labour Minister, told Business Line on Friday.

“A tripartite agreement was signed between the worker unions, the state government and the mill management today. A decision was taken on reopening of the jute mill at the meeting,” Mr Basu said.

According to Mr Basu, the mill management – as per the tripartite agreement – has agreed to clear all wage arrears. “Dues will be cleared on September 10 – the day when full-fledged operations will start in the mill,” Mr Basu said.

Over 1,500 workers were on the rolls and over 1,000 casual workers were employed at the mills as per last reports available with the State Government.

Origin of troubles

Kanoria Jute Mills, now owned by city-based businessman Mr Shiv Shankar Pasari, remained closed since March 2006 after labour unrest over various issues including “improper” payment of wages.

The mill was declared a sick unit in the early 90s by the Board for Industrial and Financial Reconstruction (BIFR). In 1991, Mr Pasari took over the management through a BIFR-approved process.

After sporadic attempts to run the mill, including an attempt by a section of workers who formed a cooperative to manage day to day operations, it finally downed shutters in 2006.

The Minister said that once operations start, other issues such as the Provident Fund dues and gratuity to workers would also be looked into.

Reluctant Trade Unions

According to senior officials of the state labour department, some of the workers unions are still reluctant to enter into an agreement with the mill management.

“I have personally assured the unions that all their issues will be looked into and the State Government will help them out in case there is a breach of agreement,” Mr Basu said.

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