The Hindu Business Line : AP jute mills face bales of woes

Jute grown in the Srikakulam and Vizianagaram districts, known as mesta, is of inferior quality and not suitable for mills. They procure the raw material from West Bengal.

Ch. R.S. Sarma

Visakhapatnam, Aug. 13 The labour-intensive jute industry in Andhra Pradesh has been passing through a particularly difficult phase in the last one year or so, plagued by labour unrest, raw material scarcity, high input prices and power problems. Strikes, lockouts and production-cuts have become frequent.

Two major composite mills — Chittivalasa in Visakhapatnam district and Nellimarla in Vizianagaram district — are in a crisis at present. The Chittivalasa Jute Mill at Tagarapuvalasa is under lockout since April 20, with the management willing to operate the mill in two shifts citing power problems as the reason and the unions rejecting the contention and wanting the mill to go on as usual in three shifts.

No solution has been found despite several rounds of talks, and the Kolkata-based owner of the mill, Mr K.K Bajoria, is expected to visit the mill on August 18 to sort out the issue.

Mr Varahala Raju, president of the recognised union affiliated to the INTUC at Chittivalasa, blames it on the attitude of the management. “The lockout is illegal and the management resorted to it without sufficient notice and without any discussion with the unions on reducing the number of shifts. The contention of the management that power problems forced it to take the step is not tenable, as many other composite mills in the State are operating three shifts. The mill has a captive power facility and it is not prohibitively costly either,” he argues.

Adjudication sought

He wants the issue referred to a labour court/tribunal for adjudication and the management to operate the mill as on April 20, status quo ante, and no other solution will be acceptable to the union. The 100-tonnes-a day Chittivalasa jute mill has a workforce of 6,000 — 2,500 of them being permanent and the rest “badili” workers and apprentices.

Mr Kalidas, senior vice-president of the Chittivalasa mill (HR), said the management had done its best to persuade the workers that doing away with one shift had become absolutely necessary and that their interests would be protected. The labour force would be deployed suitably in two shifts. “But unfortunately the unions have taken a different view and we hope wiser counsel will prevail at least now,” he said.

Mr B. Narasinga Rao, the INTUC leader and worker in the Chittivalasa mill, accuses the management of not being concerned about the welfare of workers. “The housing colony is in a dilapidated condition and our pleas for better houses have gone unheeded. The State Government has come forward to help us with some low-cost housing schemes, but the management is not receptive to the idea,” he says.

Gratuity issues

The Nellimarla mill on the outskirts of Vizianagaram district has not been functioning for the past 11 months over the issue of non-payment of gratuity to retired employees for the past seven years. Workers are on a strike and only this week the management entered into an agreement with the minority union.

The recognised union, affiliated to the Indian Federation of Trade Unions, has not agreed to it. “The management is resorting to unfair practices and means to break the strike and is not addressing the basic issue. We are only seeking gratuity,” says Mr Prasad, president of IFTU.

Mr Brij Gopal Lunani, Chairman of Sri Krishna Jute Mill group at Eluru in West Godavari district, takes the view that trade unions, especially the IFTU, should take a more practical view of the situation. “Earlier this year, one of our jute mills at Eluru, Sri Krishna Hessians, also faced the problem. For more than three months, from January 1, the workers went on a strike, seeking a wage hike. It was not a realistic demand. There should be a change in their mindset. The labour should feel as much responsible as the management for keeping the jute mill going.”

Mr Lunani also says that throughout 2008-09 the jute mills in the State, and in the country, faced jute shortage. “Roughly, 100 lakh bales of jute (each bale is of 180 kg) is needed for the mills in the country. But there was a shortage of 10-15 lakh bales last financial year. This year too there may be a similar situation,” he says.

Jute grown in the Srikakulam and Vizianagaram districts, known as mesta, is of inferior quality and not suitable for the mills. They procure the raw material from West Bengal.

Mr B.V. Rama Rao, Managing Director of the Swarnandhra Jute Mill in Srikakulam district, blames the State Government for not providing quality, adequate power to the jute mills and compounding their problems.

“Many of the jute mills are not able to function for the reason. There is no incentive from the Government for the new mills. Ours is a new mill set up in recent years, with an investment of Rs 6 crore borrowed from Andhra Bank. We are not able to pay back the bank loans and pay wages to our workers due to the wrong policies of the Government,” he alleged.