In the absence of Rs 500 and Rs. 1,000 notes that were scrapped by the Narendra Modi government A jute mill in West Bengal’s Howrah district has temporarily shut down stating its inability to pay workers.

2,500 lose jobs as This jute mill shuts its Operations

The notice from the administration of Sree Hanuman Jute Mills that tossed about 2,500 employees out of employment was released around 10pm on Monday, the same day when chief minister Mamata Banerjee apprehended a loss of a minimum of Rs 5,000 crore within the state because of the Centre’s demonetisation push.

“With deep regrets management is hereby informed to the general body of workers and the operative Trade Unions of this mill that regarding delay of payment of wages due to discontinuation of CURRENCY NOTE Rs 500/- & Rs 1000/- non co-operation activities from the part of some workers have been increasing day by day causing labour unrest, unlawful violence activities has took place in each and every shift (sic),”

The staff of the mill, that is situated at Ghusuri in Howrah district and is almost 7 km away from Kolkata, will not be compensated for the duration of suspension of work.

Although small business organizations claimed great difficulty resulting in loss of work in the unorganized groups, this is certainly the 1st big bang closing of an manufacturing unit.

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