J K Jute Mills to close unit again

Kanpur-based J K Jute Mills, which resumed operations in 2008 after being closed for nearly six years, today announced it will be shutting down again because of alleged labour unrest.     

The mill started operations in October 2008, after being shut down in June 2003.     

However, despite the closure, many workers are alleged to have forcefully entered the mill and continued the work, due to which a situation of conflict rose between the management and workers.     

When contacted, JK Jute Mill General Manager S K Singh told PTI: "The decision has been taken by the management due to (the) carelessness of workers and harassment of management by them."     

He said the production capacity of workers has fallen to 50 per cent, due to which the company is facing huge losses.     

"Therefore we are forced to close the mill," Singh said.     

Confirming the development, Additional Labour Commissioner Shriram Singh said the management of the mill has informed that due to labour unrest, the mill has suspended operations. However, it has not stated for how long.     

When asked if the management has announced a lockout, the commissioner said the management has not stated it in such terms.

Singh said closure of the mill would effect livelihoods of around 2,500 workers.     

After remaining closed for nearly six years, the mill had restarted operations in October 2008 following settlement of issues between the management and the workers' union.    

JK Jute Mills was set up in 1929.     

The management declared a lock-out in 2003 due to heavy losses, which led to 3,000 job losses.