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 Kathmandu Wednesday November 21, 2001 Marga 06,  2058.


Biratnagar Jute Mills closed down

Post Report

BIRATNAGAR, Nov 20 - Biratnagar Jute Mills (BJM), the biggest jute mill of the country plagued by frequent strikes, came to a complete closure Monday as it could not buy raw materials.

The Mills used to buy raw materials worth Rs 12 million a month on average, but lately it could not buy raw materials due to a lack of fund as its earning went down as a result of partial operation and frequent strikes.

The Mills was partially operating till Sunday as workers obstructed its operation citing not getting their overdue salary. Over 1,800 blue-collar and 160 white-collar employees of the mills had been staging strikes since a month demanding their overdue pay, Dashain allowance and medical allowance.

The strike was broken after the Chief District Officer held a meeting with the mill management, employees on condition of paying their due amounts before Tihar, but as the Mills failed to pay their due pay, they again went on partial strikes.

Nirmal Kumar Byas, a local businessman, had taken the management of the Mills in contract paying Rs 9.5 million per year to the government. The government has 46 per cent stake in the ailing jute mills.

Byas in a written application to the Ministry of Industry, Commerce and Supplies on Tuesday has accused the local administration and board of director of the Mills of not extending any cooperation while a group of workers created uproar and sold goods and manhandled some employees.

He has also requested the government to create an environment so that a tripartite meeting could be held and the problem could be solved.

He says that those workers created chaos even before the deadline of payment of their salaries. He has claimed compensation from the board of directors and the government for the damage caused by the striking workers during the period as the board of directors and the local administration remained indifferent to the incident.

The Mills, which used to operate 24 hours a day, had been running only for 16 hours a day for the past few months due to a lack of raw materials. The closure of the Mills would affect about 2,000 employees and their dependents.

Besides, the closure of the Mills will also affect the revenue that Biratnagar Customs office generates from the import of the raw materials. Likewise, the workers are used by the local businessmen to pass goods from the customs carrying them on handbags, which the porter say are brought for domestic consumption.


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