KOLLAM: Over 350 families are in dire straits following lay-off declaration by the Quilon co-operative spinning mill in Chathannoor here, citing a financial crisis.
The Government had sanctioned grants of Rs 16.5 cr, but that did not benefit the employees, apart from the purchase of three carding machines. The mill that was once a profit-making public sector entity presently has a liability of Rs 3.49 cr.
The mill with a spindle capacity of 25,000 started production in 1986 and was governed by the Industries department. The mill recently declared a lay-off and over 350 employees including over 300 permanent staff are now jobless.
“The lay-off was declared on May 16. We have started a protest in front of the spinning mill as our families are facing a real hard time ahead,” Mohana Sharma, an employee at the mill, told Deccan Chronicle.
The employees allege corruption behind the bad plight of the spinning mill. Several pieces of machinery purchased in the name of modernisation remain idle at the mill.
“The management had earlier given a letter to union leaders showing that the mill received Rs 16.5 cr from the Government. Recently, they again issued a letter which stated the mill presently has a liability of Rs 3.49 cr,” Mr Sharma said. The company has not paid ESI, PF, and LIC dues of the employees for the last 9 months, they alleged.
In the worst example of apathy towards employees, the management has not paid compensation money to the family of an employee Nisam, who died in an accident in front of the spinning mill one and a half years back. The compensation of Rs 1.45 lakh was collected by the employees of the mill by contributing a day’s wages.
The employees have planned to meet ministers including the Chief Minister demanding immediate intervention in the issue. The joint protest council has completed 20 days of protest in front of the mill.
