Kerala government textile mills hit by financial crisis, lays off over 1,000 workers
The ruling CPM faced a significant setback as more than 1,000 workers from five state-run textile mills were recently laid off. Most of these workers have not received their pending salaries or lay-off wages, leading to considerable embarrassment for the party. Observers believe that this situation has arisen due to the severe financial crisis currently faced by the state.
As per media reports, the Industries department, led by the CPM, oversees all five mills that have been at the forefront of several protests against layoffs throughout the state. Trade unions affiliated with the CITU, operating within these mills, have openly criticized the department for its lackadaisical approach towards addressing this issue.
Chengannur Prabhuram Mills, Malappuram Edarikkodu Textiles, and Thrissur Cooperative Mills have been non-operational for the past four months. Additionally, Kottayam Textiles and Seetharam Textiles have remained closed for the past three weeks.
The mills used to buy cotton from private agencies in Karnataka, Andhra Pradesh, Telangana and Maharashtra. This year the Industries department has not provided enough funds to them to procure cotton. Kottayam Textiles has around 300 permanent workers. Seetharam has 200, Edarikkad 250, Prabhuram 200 and Thrissur Cooperative Mills 225.
The mills previously sourced cotton from private agencies located in Karnataka, Andhra Pradesh, Telangana, and Maharashtra. However, this year the Industries department has not allocated sufficient funds for cotton procurement. Kottayam Textiles employs approximately 300 permanent workers, while Seetharam has 200, Edarikkad has 250, Prabhuram has 200, and Thrissur Cooperative Mills has 225.
“The department has to pay Rs 1.15 crore per month as lay-off wage to the workers. However, it has not been paid so far,” Textile Federation general secretary M R Rajan told TNIE.
“If the wages are to be calculated it would be more than `3 crore. The mills have not given gratuity to the workers who had retired. This is an unprecedented situation. According to the Factory Rules if a company went to lay off the permanent worker is eligible for lay-off wage which is half of the salary,” Rajan said.
