Govt ignored past pact in pay-off package decision: JCF workers

JANAKPUR, JUL 06 -

Employees of the defunct Janakpur Cigarette Factory ( JCF ) have said they will reject the government’s pay-off package if they are not provided with the facilities as agreed earlier with the Fast Action Task Force under the Finance Ministry.

The government on Thursday decided to pay off all the employees of the factory and to form a committee to suggest on what to do with the factory’s equipment and other property.

The employees said there had been an agreement with the task force headed by Under-secretary Prem Pandey that the government would provide them gratuity for extra three months over what they are entitled in a year. They also said the government had agreed to provide other facilities by adding the service period up to 30 years or up to the age of 58 years for their immature retirement.

“We will not accept the Cabinet’s decision as the government has ignored the earlier agreement,” said Tej Narayan Sah, a member of the task force and president of Rastriya Prajantrik Majdur Union.

The employees of the once-revered factory had been awaiting the government’s decision anxiously. After the factory’s operation ceased two years ago, the employees have only been registering their attendance. However, a significant number of the factory employees hailed the government’s move.

According to the fast track committee’s report, the factory has liabilities of over Rs 2 billion in salaries, gratuity and other facilities to its 758 workers. It also owes over Rs 2 billion to the government in taxes, to banks and raw material suppliers.

The workers have demanded the government sell the factory’s fixed and movable assets to settle their entire dues. The task force is reported to have set the valuation of the factory’s property at over Rs 10.5 billion. “If the state shows its responsibility towards the workers, the assets will be sufficient to settle all the liabilities,” said a worker Madan Thakur.

According to the factory’s employees, they agreed to take voluntary retirement based on the agreement reached with the task force.

Biswanath Thakur, coordinator of Joint Workers’ Coordination Committee, said the employees accepted the retirement package just as a way out after the factory closed.

Since the factory closed in March 2011, its staffers have remained idle, but the government has been forced to the pay their salaries. The workers are being paid their salaries in a lump sum two-three times a year.

Source: The Kathmandu Post