Labourers not ’employees’, can’t give them EPF: Solapur sugar factories

Picture for representational purpose

SUGAR factories have told the regional EPF office in Solapur that sugarcane labourers are not employees of the factories, and hence cannot be given provident fund (PF) benefits. Officials from the regional EPF office in Solapur had called a meeting of the representatives of sugar factories and contractors Friday to discuss labour laws being made applicable to sugarcane labourers and transporters.

“The representatives of sugar factories were informed that sugarcane labourers and transporters were eligible for EPF. These labourers are involved in the essential activity of the factory. The factories make payments to supervisors and transporters who then pay the labourers. Though the factories deduct these payments from sugarcane growers’ payments, the factories and sugarcane growers fall in the category of owners,” said an official.

The official said the representatives of the factories were also given a copy of the judgment of the Madhya Pradesh High Court in the Orient Paper Mills case of 2005. The court had held in that case that the workers loading and unloading bamboo for the mill were workers of the mill. “The nature of work of sugarcane workers is similar,” added the official.

However, the sugar factories said there was no question of extending EPF to labourers. “The sugarcane labourers and transporters are not employees of the factories. It is the responsibility of the sugarcane growers to transport the sugarcane from the field to the factory. We merely help them in that work by engaging the Mukadams and transporters and deduct the charges from their payments. So, they can’t be called factories’ employees and the question of providing EPF does not arise,” said a representative who attended the meeting.

Another representative said the issue was raised in 2003 also and they had then written to the Delhi EPF office. “Sugar factories won’t be able to bear the burden and it may lead to shutting down of factories,” he said. Regional EPF Commissioner Hemant Tirpude said another meeting would be held in a month.