2,500 workers lose jobs as Howrah jute factory downs its shutters

KOLKATA: A jute mill in West Bengal’s Howrah district has temporarily closed down citing its inability to pay workers in the absence of `500 and `1,000 notes that were scrapped by the Narendra Modi government.

The notice by the management of Sree Hanuman Jute Mills that threw about 2,500 workers out of jobs was issued around 10pm on Monday, on a day chief minister Mamata Banerjee apprehended a loss of at least `5,000 crore in the state due to the Centre’s demonetisation drive.

The workers of the mill, which is located at Ghusuri in Howrah district and is just about 7 km away from Kolkata, will not be paid for the course of suspension of work.

Though small business establishments reported great inconvenience leading to loss of jobs in the unorganised sectors, this is the first big closure of an industrial unit.

The decision of the management is bound to fuel the strident opposition of chief minister Banerjee who is trying to organise opposition all over the country against Prime Minister Modi’s note ban.

“A number of business units have closed down in the district and this bloodbath will continue till the draconian decision is withdrawn,” Arup Ray, cooperation minister and Trinamool president of Howrah, said.

In the third week of November, Hindustan Times reported how the demonetisation drive triggered a crisis for the jute mills in the state that employ more than 2.5 lakh workers. Nearly 95% of the workers in this industry receive their wages in cash.

Indian Jute Mills Association (IJMA) has also written to the state government seeking urgent intervention.

Hundreds of workers who gathered in front of the mill on Tuesday morning to report for duty were both aghast and angry at the management’s decision.

“In the name of demonetisation, the Centre has already caused sufferings to employers, employees and agriculture. It is regrettable that a jute mill has to down its shutters throwing the lives of so many workers in jeopardy,” Mahesh Singhania, president of West Bengal Trade Associations, said.