A settlement to the decade long issue, at the Chittivalasa Jute Mill, in Visakhapatnam district, was reached. It was decided that the management of the jute mill will have to pay a compensation of Rs. 23 crore.
The tri-party meeting was held at the District Collectorate Office on 9 July 2019 on the behest of State Tourism, Culture and Youth Advancement Minister, Muttamsetti Srinivasa Rao. State Labour Minister, GummanurJayaram, and Visakhapatnam District Collector, Vinay Chand (IAS) were the other two key conveners from the State Government. The second party was the management of the jute mill. The leaders of the various trade unions, that represent the 6000 workers at the mill, were the third party in the meeting. This is further to a previous meeting held on 5 July 2019.
A final decision was reached and the jute mill management agreed to pay gratuities, fixed deposits, leave allowance and salaries for five and a half months to its 6,000 permanent workers. The apprentice workers would be paid Rs.10,000/- each. The total amount of Rs. 23 crore would be reimbursed in two installments in the coming year. Subsequently, after clearing the pending dues, the management will be able to sell the 70 acres land at a premium. The Tourism Minister expressed happiness in settling the decade long deadlock. He mentioned that the State Government, led by AP Chief Minister, Y.S. Jagan Mohan Reddy, has achieved this within two months of coming into power.
However, the leader of the Centre of Indian Trade Unions (CITU), Ch. Narasinga Rao, walked out during the meeting, stating the deal to be a complete sell-out. He also added that if the State Government invests Rs. 50 crore, to keep the jute mill running, the welfare of its 6,000 workers can be ensured.
The Chittivalasa Jute Mill, set up in 1930, is the oldest mill in the country. It is owned by a Kolkata based firm. The mill was eventually locked up by the management on April 20, 2009. The StateGovernment, at that time, had declared this shutdown as illegal in a government order issued in August 2009. A request, by the jute mill management, to cancel the GO was then dismissed.