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Trade unions oppose NJMC privatisation

Our Bureau

KOLKATA, Oct. 22

ABOUT 17 trade unions (TUs) operating in the jute industry have decided at a convention here to oppose the privatisation of the National Jute Manufactures' Corporation (NJMC). The TUs will demonstrate before Parliament on November 26.

At the convention, the union leaders aired their apprehension that private entrepreneurs in the jute mill sector would be interested in six NJMC mills for asset-stripping purposes only.

They felt that even though there would be clauses for the protection of workers' interest in the sale deals, after the disinvestment, the private owners would ignore their interests in the absence of any guarantee from the Union Government to workers. Th e NJMC employs around 12,000 permanent workers and 3,700 special badli workers.

Most of the bids for the NJMC mills have come from the existing jute mill owners. ``Going by the track record of some of the owners, it will be foolhardy to expect them to follow the agreements in letter and spirit,'' they said.

Neither the workers' co-operatives, nor the Governments of West Bengal and Bihar (where one of the mills is located), nor any public sector undertaking have responded to the tender floated individually for the units. The sale offer closed on Thursday.

The sale agreements, according to the Textiles Ministry, will stipulate that no retrenchment can be made by the new owner, that the mill will have to be run for at least 10 years. In case a voluntary retirement plan is mooted, the compensation will have to be in line with that for the Union Government employees.

The Union Finance Ministry is against continuing budgetary support to meet the wage bill of NJMC. It is also pressing for its closure under the Industrial Disputes Act at the earliest.

The NJMC has received a total budgetary support of Rs 1,033.82 crore since 1980-81 till the end of the 2000-2001 financial year. During 2000-2001, the corporation's operating loss was projected at Rs 126.50 crore. Its combined operating loss since 1980-8 1 stands at around Rs 1,306.91 crore.

According to the Textiles Ministry's current plan, in case a mill is not sold, a voluntary separation scheme will be implemented for a specific period of three months for the workers. Thereafter, the units will be closed under the Industrial Disputes Act . The assets of the mills will then be disposed off and the NJMC would be wound up.