IJMA chairman Kajaria quits over differences

25 Feb '10

2 min read

Chairman of Indian Jute Mills Association (IJMA), Sanjay Kajaria has resigned from the post. According to the industry sources his decision is highly influenced by the reluctance of a section of the jute millers' in implementation of the tripartite settlement agreement which has been recently entered into. On behalf of the jute millers, IJMA signed the agreement which was arrived at on February 12, following the 61-day indefinite strike by the jute industry.

As per the agreement, the jute mill workers will have to be paid DA of Rs. 1,198 per month over the period of next three years in six installments. Also, the amount in respect of the entire industry's dues outstanding towards gratuity totaling to Rs. 3 billion will also have to be paid out during corresponding period.

Over and above this, the entry level minimum wages will also have to be raised by the industry from current Rs 100 per day to Rs 157 per day. On the whole, an average jute worker has been bestowed with a monthly rise of Rs. 2,000. Jute industry anticipates that, over the next three years, they will have to jointly disburse Rs. 5 billion towards meeting the settlement obligations.

However, many of the jute millers are averse towards complying with the agreement as of now. They are expecting the Centre to come to their aid by increasing the procurement price and increase the quota, to help them meet these settlement dues. But, recently much to the disappointment of jute industry the Union Food Minister postponed the meeting that was scheduled for fixing the quota.

Fibre2fashion News Desk - India

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