Jute Industry

Topics: Trade union, Strike action, Employment Pages: 2 (303 words) Published: June 23, 2013
Jute is an emerging niche market
77 jute mills in India out of which 60 are in West Bengal
Jute is a labour intensive industry, which engages 4.35 million people Jute is an eco-friendly and biodegradable product. With the pressure from green movement, it is going to sustain through consumer's preference. Jute is a golden fibre. Being a natural, bio-degradable and eco-friendly fibre, jute can be blended with other compatible fibres for providing better physical, chemical, thermal, comfort and other important properties required for other applications. New jute bags, also used heavily in textile industry.

Employment generator. Potential to become a 5000 cr industry

Problems in jute industry

Multi unionism is one of the major problems faced by jute industry and engages major concentration of routine management in resolving labour dispute. Lack of formal pay structure
Sharpe decline in the number of migrant labours(labour shortage) MNREGA is also blamed for the shortage of labours in the industry Frequent revision of PJMA guidelines (to add or dilute items for jute packing) leaves the industry in confusion whether to invest further on the Jute technology development/product development/market expansion or wait for new policies etc. Lack of technological development has made it dependent on humans and hence increased the power of labour unions

Results

Loss of productivity due to strikes .. recently a 2 month long strike in 2010 Loss of potential growth. The industry has a huge prospects as the demand of jute made products are increasing. Potential to become a 5000 crore worth indusrty

solution
government and industry should device a tri-party agreement between government, mill owners and the trade unions, so as to overcome loss of work by strikes, lockouts, law off, closure of mill, etc. R&D and technology upgradation

Productivity linked payment scheme
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