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Kathmandu Thursday July 06, 2000 Ahsad 22, 2057.
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Workers of
Biratnagar Jute
Mills-numbering more than two
thousand—withdrew their month long strike after the management agreed to provide
facilities in accordance with the Labour Act. This development is to be welcomed in the
hope that the management will keep its word. No doubt, pressure from the main opposition
party UML had something to do with the indication from the management of its willingness
to look into the 19-point demand of workers. However, the manner in which the management
and the opposition handled the labour strife shows that they have virtually dragged the
mill to a state of near collapse.
Three years ago, after
appointing the chairman, the Nepali Congress (NC) led government handed the management
over to a private party on contract for a period of five years. The contract was
extendible. However, successive governments continued with their interference in the
management of the mill. As a result, the contract did not last more than two years, spoilt
as it was by differences between the government appointed chairman and private investors.
This not only affected the management of the mill but also the working environment. Only a
handful of NC political cronies benefited. Had the government allowed private investors to
run the mill, workers might perhaps never have had to resort to such extreme measures to
press their demand. Neither would the Jute Mills have suffered so great a loss. For this
state of affairs, the NC led government is to be mainly blamed.
Last month, workers had
demanded that the management resume the operation of the factory by May 28, apart from
meeting their 19 point demand. When the management refused, workers had resorted to the
strike and even taken to the street. The 19 point demand included two months off per
annum, medical assistance and adequate compensation for the days the mill had remained
closed. The strike no doubt caused heavy revenue loss since workers succeeded in blocking
the Biratnagar-Jogmani road for a week. Now that the deadlock between the management and
workers has been resolved, normal production should begin. However, care must be taken not
to allow Biratnagar Jute Mill to become a place where political parties flex their
muscles.
The mill needs to produce over 30 metric
tonnes to break even. However, due to ineffective management and frequent political
interference, the mill has fallen far short of this target. At present, the mill owes more
than thirty million rupees, which it took as loans. Due to the problems mentioned above,
the mill is in a bad state. If the government does not arrest this downslide and the
accruing loss, the jute mills will definitely collapse. To prevent this, the government
has to look for a private party that can reverse this trend and eventually make the mills
run on profit.
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