May 5, 2012

Bail out Krishnagiri District Cooperative Spinning Mill

The CITU affiliated to Communist Party of India (Marxist) has urged the State Government to bail out the Krishnagiri District Cooperative Spinning Mill in Uthangarai and protect the interest of employees.
In a statement issued here on Friday, party district secretary G. Sekar stated that maladministration pushed the mill to financial crunch. The management failed to remit the Provident Fund amount deducted from the employees for over one-and-a-half years. Hence, the amount due had increased to over Rs. 1.5 crore.
After several warnings, the Employees' Provident Fund Organisation had issued an announcement in newspapers to auction the properties of the mill recently. This had created a fear among the employees that their livelihood was in question.
Mr. Sekar alleged that this might be the handiwork of the management to threaten the employees not to press their demand for hike in salary.
The management was not showing any interest in improving the production and marketing. Cooptex was also not interested to procure the yarn produced by the mill in time affecting the funds' flow.
Despite various petitions submitted to the Secretary, Handlooms Department, by CITU leaders P.M. Kumar, G. Sekar and C. Balathandayutham, no action had been taken against the erring officials.
The salary of the employees, who had finished 25 years, could not touch even Rs. 10,000. The management failed to disburse the terminal benefits to 27 employees.
The employees got only Rs. 500 as hike through negotiations for the past 10 years, where as the administrative staff were getting salary on a par with that of the government employees, he alleged.
During the debate on demands for textiles and handloom sector, the government also failed to make any announcement regarding bailing out of the Uthangarai mill. Hence, the CITU demanded that the government appoint a monitoring committee for effective functioning of the management.
It also urged the government to bail out the mill by bearing the cost due to the EPFO.