JK group makes peace with unions

Faced with the threat of Kolkata-based Pawan Trading Co taking over JK Jute Mills, the management of Kanpur-based JK group, led by Gaur Hari Singhania, has mended fences with four unions that had signed up with the new promoter.

The unions will rescind the agreement with Pawan Trading. The Kolkata firm is a leading house in jute machinery goods over the past 30 years.

Pawan Trading had assured the interests of workmen would be protected and all liabilities settled. The JK management had concluded with seven unions an agreement to cut wages until the mills revived.

However, the latest agreement with the management says the workers will forgo 10 per cent of their wages till the mills turn the corner. What is being cut now will not be reimbursed.

All India Trade Union Congress leader Shishu Pal Singh said workers were misinformed. "Now we are waiting for the date from the appellate authority of the Board of Industrial and Financial Reconstruction," says Singh.

But JK executives are not sure when the mills will open. It is apprehended West Bengal-based jute units want the status quo to continue so that they can continue supplying jute to Uttar Pradesh.

Singh says it is reported another firm is interested in taking over. The appellate authority bench has now been constituted.