Jute industry strike means Rs 1000cr loss

The imminent jute strike in West Bengal from December 1 2008 may result in losses of around Rs 1000 crore, fears the industry.

The trade unions, who have called the strike, however, point out such managerial claims to be ‘vague and false’.

As per industry estimates, during the strike period, Rs 500 crore may be lost because of no offtakes of bags by the sugar industry. The remaining loss may arise out of stopping of bags supply for other agri-commodities like oilseeds, guars and lentils.

There is also an impending fear of the jute industry losing the Rabi season food grain market which is around Rs 2000 crore.

The jute industry witnessed a 63-day strike from January 5 to March 8 in 2007. Jute strikes in Bengal have almost become a seasonal and routine affair taking place every year.

Eighteen trade unions, barring the bigger section, the CITU affiliated BCMU, has called for a strike from December 1 in the 59 jute mills of West Bengal involving over 2.5 lakh workers.

The CPIM party fraction committee on jute sector has approved of BCMU’s stand to stay away from the strike, thereby showing that there are no pressures from the party committee on the union. Says Congress-affiliate INTUC body NUJW secretary general Ganesh Sarkar, “ CITU has backed out on party pressures. First they wanted the strike in November and now they are in favour of delaying it”. Almost 14 jute mills, medium and small, outside Bengal are yet to join the strike. They are spread out in Bihar, Andhra Pradesh, Orissa, Assam and Uttar Pradesh. The unions have put forward a 17 point split charter of demand basing their arguments on the non-payment of dearness allowance (DA) to workers by the mill owners since April 2007.

The mill owners have turned down union requests and demands for paying DA at 525 points as against the previous 275 points.

A consensus, however, is yet to emerge between the unions on the issue of DA. BCMU has taken itself off from the strike pointing out that the DA demand is ‘hackneyed’ and ‘ inane’.