Kirlampudi sugar mill ordered to pay compensation to workers

Update: 2018-01-08 07:51 IST

Pithapuram: The Industrial Tribunal-cum-labour court at Visakhapatnam ordered payment of compensation ranging between Rs 50,000 and Rs3 lakh to each worker of the closed Kirlampudi Sugar Mill depending on each worker’s length of service. 

Tribunal judge Annapurna delivered the judgement, said Kirlampudi Sugars Limited Staff and Workers’ Union president Ch SN Murthy and secretary D Krupanandam said on Sunday. 

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The verdict benefits over 421 workers and puts financial burden of Rs 16 crore on the defunct factory’s management. The management on the pretext of fixing new machines closed down the unit 25 years ago promising to reopen the factory. 

Over a period of time, it removed old machinery from the unit driving 421 workers onto the street. In 2006, the workers approached the industrial tribunal seeking justice. The trial went for five years. 

Meanwhile, the state government delayed for five years appointment of a judge to the tribunal. At last, the judge delivered the verdict going through the facts of the case. 

As per the verdict, workers get compensation as follows: Rs 50,000-each of those who have up to five years of experience, Rs 1,00,000- each of those who have experience up to 10 years, Rs 1,50,000- which of those who have experience up to 15 years, Rs 2,00,000- each of those who have experience up to 20 years and Rs 2,50,000- each of those who have experience up to 25 years.

Those who have experience over 25 years are entitled to get Rs 3 lakh as compensation. The workers are jubilant over the verdict, which asked the management to pay workers the compensation with an interest of 9 per cent till the actual disbursement is made. 

The trade union leaders said that they would not stop at it. They would fight for the payment of wage arrears and gratuity. They urged Chief Minister N Chandrababu Naidu to side with the industrial workers and ensure that the payment of compensation was done even by auctioning the factory property.

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