A referendum on the voluntary retirement scheme (VRS) and severance package announced by State government for workers of the Mysore Paper Mills (MPM), a public sector undertaking in Bhadravati will be held on July 17.
The meeting of State Cabinet on December 7, 2016, had decided to release an amount of ₹396.72 crore for VRS and a severance package for permanent and contract workers serving with MPM. However, in its order passed on March 6, 2017, the State government reduced the amount towards VRS and severance package to ₹185.57 crore. The workers of MPM had staged a series of protests against the reduction in the financial allocation.
C.S. Shivamurthy, president, MPM Workers’ Association, told The Hindu that the functionaries of the association and elected representatives from Bhadravati held a series of meetings with the senior officials of the Commerce and Industries, and Finance and Law Departments over the issue.
A delegation of the workers had also met Chief Minister Siddaramaiah and Minister for Heavy Industries R.V. Deshapande seeking enhancement of financial allocation for the package. After these meetings, the State government had agreed to enhance the allocation for VRS and severance package to ₹400.04 crore.
He said that according to existing labour laws, to seek the consent of the workers for the VRS and severance package, the association should either convene a special general body meeting or conduct a referendum. The association decided to hold referendum for practical convenience. Workers can vote for or against the package.
The referendum process will be held at the main entrance gate of the firm on July 17 from 8 a.m. to 4 p.m. The association has completed the necessary preparation for the smooth conduct of the referendum process including the printing of ballot papers. All the permanent workers serving with MPM will vote in the referendum, he said.
Settlement break-up
Mr. Shivamurthy said that of ₹404.04 crore, an amount of ₹122.83 crore has been reserved for VRS and the remaining ₹282.21 will be paid in the form of settlement of dues towards revision of dearness allowance, settlement of gratuity and salary of ₹39.85 crore to be paid during the lay-off period. A similar referendum was held under the aegis of the association in 1998 on a bi-party agreement with the management over wage revision.
MPM workers
It may be mentioned here that, citing the losses incurred by MPM, the State government halted production here since November 2015 and workers have been sent on mandatory leave since then. The workforce with MPM at present is at 2,409 that includes 1,102 permanent workers and 1,307 workers serving on contract basis.