Andhra Pradesh

Jute mill settlement arrived at

Labour Minister Gummanur Jayaram and Tourism Minister Muttamsetti Srinivasa Rao holding talks on payment of dues to the workers of Chittivalasa Jute Mills on Tuesday.

Labour Minister Gummanur Jayaram and Tourism Minister Muttamsetti Srinivasa Rao holding talks on payment of dues to the workers of Chittivalasa Jute Mills on Tuesday.   | Photo Credit: arranged pic

CITU walks out of meet, terms the ₹23-crore deal a ‘complete sellout’

Ten years after locking out the Chittivalasa Jute Mills, the management has agreed to pay ₹23 crore towards settlement of outstanding dues and compensation to the workers following the intervention of Labour Minister Gummanur Jayaram and Tourism and Youth Affairs Minister Muttamsetti Srinivasa Rao.

After a meeting with the representatives of the trade unions, the management and the Labour Department, an agreement was reached here on Tuesday over settlement of dues amid a walkout by CITU team led by its State president Ch. Narsinga Rao who described the tripartite agreement as ‘complete sell-out.’

Mr. Narsinga Rao told The Hindu that instead of acquiring the mill by the government and reopening it by investing a working capital of ₹50 crore, the State government had compromised the interest of the workers.

The mill set up 1930 is the oldest composite jute mills and one of the major industries set up in pre-Independence era near Bheemili in the undivided Andhra Pradesh. The mill was locked out on April 20, 2009. The then State government declared the lockout illegal by issuing GO Ms. No. 1265 on August 20, 2009. The management approached the AP High Court seeking its intervention against the GO, which subsequently was dismissed. Following tripartite talks, the management agreed to pay five and half month wages during the lockout period under 25FFF of Industrial Disputes Act besides bonus, gratuity and other dues to the permanent workers. The apprentices will get ₹10,000 per head.

The Ministers later told reporters that they were happy with the settlement. Among others, District Collector V. Vinay Chand, Joint Commissioner of Labour T. Venkataratnam and K. Varahalu Raju INTUC attended.

Mr. Narsinga Rao said the eco-friendly mill owned by a Kolkata-based firm had tremendous potential for revival. It is spread over valuable land of 70 acres. “Now with one-time settlement of dues, the management will be at liberty to sell away the land at a premium,” he said.

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Printable version | Feb 22, 2020 7:45:54 AM | https://www.thehindu.com/news/national/andhra-pradesh/jute-mill-settlement-arrived-at/article28336768.ece

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