The government had discharged 240 workers from their duties to ease the mounting financial burden on the state-owned company on July 10. The management had decided to give marching orders to the employees, without giving prior information, a week ahead of their scheduled retirement date.
As per the company´s bylaw, staff members who have served the company for 30 years have to retire from the company by default. But according to the agitating staff, it is a common practice for the management to inform them about their retirement date a month ahead of their actual retirement date.
"The government, first of all, disappointed us by discharging us without giving prior information. On top of that, it has not released our payment," one of the protesting staff said.
The employees claim the government owes each of the retired staff from Rs 500,000 to Rs 1.7 million in salary and gratuity amounts.
"The government will need around Rs 240 million if it wants to clear the unpaid due amount," according to Anurag Giri, one of the senior officials of the cigarette factory.
Meanwhile, another 41 staff, who are retiring on Thursday, are also planning to join the protest led by 240 retired staff.
Established in January 1965, Janakpur Cigarette Factory is the largest cigarette manufacturing company in Tarai. The company, which was making profit till 12 years back, had started incurring losses due to unnecessary political intervention, problem of overstaffing and inefficient use of various resources.
At present, the situation in the company has transformed from bad to worse and it is on the verge of closure due to lack of tobacco.
"The factory owes some Rs 40 million to a foreign tobacco supplier, whereas the existing stock of tobacco is enough just for a week. If the management cannot release the payment in time and replenish the tobacco stock, there is no alternative to closing it," Giri said.
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