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Monday, February 15, 1999

Bengal provident fund chief ropes in errant jute mills'a trade unions 

Kohinoor Mandal  
Calcutta, Feb 14: The regional provident fund commissioner here has taken the innovative step of involving trade unions and employees in his action against six defaulting jute mills in the state.

SK Khanna, the RPFC (I) for West Bengal, Andaman & Nicobar Islands and Sikkim, said he had publicly asked employees of these jute mills to inform him if they are being denied any benefit under the provident fund scheme.One of the common dodges adopted by jute mills is their practice of recruiting workers under different heads like badli, casual, "zero number" and others to avoid including them in the welfare schemes, provident fund and employees state insurance (ESI).

Of the six mills targeted by Khanna, two belong to jute baron Arun Bajoria's Hooghly Jute Mill Co Ltd -- Weaverly and India Jute. The others are North Brook Jute Mill run by S Ganeriwala, Prabartak Jute Mill run by OP Mall, Budge Budge Jute Mill run by Ashok Poddar and Bally Jute Mill.

Khanna confirmed to The Financial Express that this is thefirst such move taken by the PF authorities in the country. "Yes, it is for the first time in the history of India that we are involving the workers and trade unions. To start with, we have taken into account only six jute mills but we will soon expand the scheme to other units," he said.

The total provident fund dues of companies and establishments in West Bengal is around Rs 200 crore, with jute being the largest defaulter (Rs 117 crore). This includes National Jute Manufactures Corp Ltd, created to run five nationalised jute mills in West Bengal and one in Bihar.

Khanna has asked the trade unions to inform his office if any employee of the six mills is working as a regular staff, or temporary, badli, casual or engaged by contractors, or working after retirement or in any other category but is not included in the PF scheme.

Khanna said the mills have informed him that all workers are included by the PF scheme. "I have only asked the trade unions to come with relevant documents if any employee is leftout of the scheme," he said.

Industry sources said there are 200,000 industrial workers in the jute sector, of which around 30,000 have been denied benefits under the PF and employees state insurance (ESI) schemes.

"Almost all mills have engaged workers under different heads to avoid extending the benefits of the welfare scheme. According to estimates, out of around 200,000 workers, 30,000 are not included in these schemes. Victoria Jute Mill, Angus Jute Mill and Hukumchand Jute Mill are also major defaulters," the sources added.Khanna has repeatedly expressed his inability to take action against the erring jute mills because they are lossmaking or sick. "We are trying to speed up the recovery process but industrial sickness is a major obstacle. Most of the defaulters have been referred to the Board for Industrial & Financial Reconstruction. This prevents us legally from taking any step," he said at a seminar recently.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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