MPM workers upset over delay in payment

The delay in releasing the pending amount of Voluntary Retirement Scheme (VRS) and severance package has created apprehension among the workers of Mysore Paper Mills (MPM), a public sector unit in Bhadravati.

It may be mentioned here that the State government in August 2017 had announced to allocate an amount of ₹401 crore for VRS and severance package of workers serving with MPM. Of ₹401 crore, ₹122.83 crore was reserved for VRS and remaining ₹278.17 crore was to be paid in the form of settlement of dues towards revision of dearness allowance, settlement of gratuity and salary of ₹39.85 crore to be paid during the lay-off period. Of 2,409 workers serving with MPM, 2,031 workers had opted for VRS.

Citing losses incurred by MPM, the State government halted production here from November 2015 and the workers have been sent on mandatory leave since then. Of the ₹401 crore package, ₹202 crore was released in the first phase in March 2018.

C.S. Shivamurthy, president, MPM Workers’ Association, told The Hindu that the workers are worried over the delay in the release of the remaining ₹199 crore. Without clearing of the due amount, notices were issued for workers to vacate residential quarters allotted to them.

Vacating quarters

The association told the management that the issue of vacating the quarters could be discussed after the dues were cleared. Some workers also requested that they be allowed to stay in the quarters on rent or lease.

In the State government’s budget of 2018-19, ₹147 crore has already been reserved towards clearing the VRS and severance package dues. There was delay in releasing the money owing to the Assembly election and formation of new government.

Mr. Shivamurthy said a delegation of workers of MPM will meet Chief Minister H.D. Kumaraswamy, and K.J. George, Minister for Heavy Industries, on June 15 to request them to take measures to clear the remaining amount at the earliest.

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Printable version | Mar 29, 2020 3:47:47 PM | https://www.thehindu.com/news/national/karnataka/mpm-workers-upset-over-delay-in-payment/article24131328.ece

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