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The oldest jute mill in the country has remained closed over deepening dispute between mill management and workers for more than a year. The decision will affect some 1,100 workers.
Under the tripartite agreement between employees, management and government officials agreed on Thursday, workers completing up to 29 years of service would get lump sum equivalent to three months of salary and other facilities and one month of salary as compensation, while workers completing more than 29 years of service would be entitled to a lump sum equivalent to 85 months of salary and other facilities.
The government has to bear a liability of around Rs 600 million to clear the workers´ dues.
"As per the agreement, the employees will be paid before the Dashain festival," said Nanikaji Shrestha, joint coordinator of Jute Mill Struggle Committee. He also said the government was preparing to sell the mill to private sector for its smooth operation.
Demanding immediate operation of the mill or their payoffs , workers had been staging a series of protest programs. They, however, had suspended their agitation after Finance Minister, during his recent visit to the trading city in eastern Nepal, formed a committee to deal with the issues.
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