With the closure of Reliance Jute Mill in North 24 Parganas district, four of Bengal’s jute processing mills have been shut down since November 8, when demonetisation was announced. However, industry observers said the note ban was perhaps “an excuse” for the closure of some of the mills, including Reliance Mill.
About 4,000 workers of one of the oldest mills of North 24 Parganas were rendered jobless as the mill closed down on Saturday. Reportedly, the mill had no payment issues unlike the others but shut a section following “a conflict of interest”, said Ashnarain Singh, secretary of the union affiliated to the Bengal Chatkol [jute] Mazdoor Union.
“The problem started at the winding section where the yarn is turned into a ball. The management increased the workload and reduced the gap between the shifts thus annoying the workers,” Mr. Singh said.
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Till September 2016, 13 of the 58 jute mills along the Hooghly river were closed rendering about one lakh workers in jute and allied industries jobless, according to an industry observer. “Few of the earlier closed mills opened after September, while at least four were closed after demonetisation. So the exact figure of the closed mills is difficult to produce,” the observer said.
Trade unionist and senior CPI(M) leader Biplab Ganguly cited two reasons for the closures prior to demonetisation.
“The refusal of payment of annual bonus, non-payment of PF or Gratuity is one of the many reasons,” Mr. Ganguly. The other reason is the pressure from synthetic yarn lobby to “reduce the market” of jute, he added.
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