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Over 1,000 workers laid off as Kerala govt textile mills face financial crunch

Updated: Jun 10, 2023 03:39:53pm
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Over 1,000 workers laid off as Kerala govt textile mills face financial crunch

Thiruvananthapuram, June 10 (KNN) The Kerala government in the last four months has laid off over 1,000 workers of five state-run textile mills, according to a report in the TNIE.

As per reports, due the the financial crunch being faced by the state, the government has also neither been able to pay off the pending salary nor lay-off wages.

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The Chengannur Prabhuram Mills, Malappuram Edarikkodu Textiles and Thrissur Cooperative Mills are closed for the past four months, while Kottayam Textiles and Seetharam Textiles has not been in operation 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.

Textile Federation general secretary M R Rajan told TNIE that 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.

“If the wages are to be calculated it would be more than Rs 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. 

The Textile Federation leaders in the state have met with Industries Minister P Rajeeve twice and submitted a memorandum regarding this issue.

“We know the government has financial constraints. However, the department should make way to open the mills,” said Rajan.  (KNN Bureau)

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