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This is an archive article published on September 29, 1998

Change in pay scales draws flak

MUMBAI, Sept 28: Powerloom owners and workers in Bhiwandi and three other centres of Maharashtra's powerloom industry -- Malegaon, Ichalk...

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MUMBAI, Sept 28: Powerloom owners and workers in Bhiwandi and three other centres of Maharashtra’s powerloom industry — Malegaon, Ichalkaranji and Solapur — have expressed their strong opposition to the tabling of a bill proposing radical changes in the small scale industry’s payment structure.

The bill, based on recommendations of the labour commissioner, who submitted a report to the Labour Ministry on August 17 this year, is likely to be tabled by the state government in the winter session of the legislature.

The legislation also aims to impose certain financial obligations on owners, and will be tailored along the lines of the Mathadi Kamgar Act.

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A three-member team, comprising Abdul Salam Azmi, general secretary of the Powerloom Workers Association, Bhiwandi; Dilip Gokani, president of the Powerloom Association, Bhiwandi; and Rajan Malabari, secretary of the Powerloom Owners’ Association, recently wrote to Chief Minister Manohar Joshi urging him to stall the bill. Also, Bhiwandi’s powerloomindustry witnessed a shutdown on Saturday in protest.

Bhiwandi, Asia’s largest powerloom centre, alone accounts for about seven lakh looms, which employ nearly 105 lakh workers. There are around 12 lakh loom owners and 180 lakh workers in the state’s four powerloom centres.

The key recommendations of the labour commissioner, who was asked by the labour department to prepare a report in August 1996, are as follows:

  • Workers will have to compulsorily register themselves with a board which will be set up in each of the four powerloom centres. Each board will have a deputy labour commissioner as its president and two other members appointed by the state government. While registering themselves, loom owners will have to make a one-time deposit of Rs 100 per worker, while workers themselves will contribute Rs 10.
  • Salaries will be paid via the boards, and not directly by employers, as is the current practice. The corpus will come from loom owners, who will have to deposit 28 per cent of theirprofits every month with their respective boards. The money will also be used to give provident fund, bonus, accident benefits and house rent allowance to workers. A percentage will be set aside for the board’s administrative expenses (at present, loom owners pay each worker at the rate of five paise per metre of cloth produced, which on an average amounts to nearly Rs 3,000 per month. This rate has been fixed by loom owners).
  • Workers will have to serve a minimum five years in a particular loom to avail of these benefits. (Currently workers change employers almost every six months. This, they explain, is in pursuit of better prospects. As a worker upgrades his skills, he seeks employment with another loom in a department that pays better).
  • Loom owners and workers say the recommendations ignore ground realities. They claim the new bill would sound the death-knell of the powerloom industry, which is already sustaining crippling losses.

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    As loom owners incur frequent losses, the new arrangementwouldn’t work, they point out. The price of weaving threads is not stagnant, and it adds to losses. But the report hasn’t considered this, they feel.

    The three-member team has instead submitted its own proposals, which are as follows:

  • Both workers and loom owners should invest a certain amount in the bank which should not be retrieved for a minimum of one year.
  • 2) For bonus and medical facilities, owners should pay Rs 5,000 per worker per year to a corresponding contribution of Rs 70 by workers.

    3) Payment of compensation in full for accident benefits against the part payment they currently contribute.

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    4) House rent can be paid by deducting a percentage of taxes loom owners pay to the government.

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