The 11-day-long strike by nearly 250,000 workers of 59 jute mills in West Bengal ended on 10 January 2004 when the mill owners joined the tripartite meetings convened by state Labour Minister Mohammed Amin. The management has agreed to pay dearness allowance (DA) to the workers on increased consumer price index of 134 points from 1 February 2004. The workers will get an annual increment of Rs 10 and DA worth Rs 254. According to Indian Jute Mill Association sources, the best part of the settlement was linking of wages with productivity.

Production and exports in the 59 integrated jute mills came to a standstill on 29 December 2003 when the workers led by 15 trade unions went on an indefinite strike demanding the implementation of the tripartite agreement (with revision) signed in 2002.

One of the major demands of the striking workers was to stop the government`s move towards the dilution of the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act  (JPMA) of 1987. The jute industry in India is facing tough competition from plastic bag manufacturers in the packaging sector. At present, JPMA enjoys monopoly in the packaging of sugar and food grains. According to the central government order of 14 August 2003, up to 30 June 2004 or until further orders, whichever is earlier, the jute industry is entitled to a packaging reservation of 100 per cent for food grains and 90 per cent for sugar. The order also has a clause that in case of any shortage in supply of jute packaging material, the Ministry of Textiles can, in consultation with the concerned ministry, relax these provisions up to a maximum of 20 per cent for food grains and sugar. It seems that the central government, especially the textile ministry is not happy with the reservation. They have jointly taken steps to dilute the JPMA. A petition is pending in the Supreme Court.

The charter of demands of the workers also included specification of their grades and scales; decentralisation of NJMC mills; dearness allowance to be paid with retrospective effect from February 2002 and bonus and flexible bonus from 2002-2003.

The strike saw rallies, gate meetings and sit-in demonstrations by jute workers as well as other supporting organisations. The striking workers received support from all sections of trade unions. More than 40 lakh jute growers of the state came out in strength to support the workers.  The Kisan Sabha also extended its full support. The workers and staff in Andhra Pradesh`s jute mills also extended full support to the striking workers. Srinivas, co-convener of the Andhra Pradesh Jute Mill Staff Workers` Committee, said there was no sincere attempt on the part of the government to promote jute or the diverse jute products. He said the order stipulating that at least 50 per cent of food grains be stored in jute sacks is not being enforced and polythene bags, though so much is said of the damage they cause to environment, are being preferred.

As per the settlement, a negotiating committee has been formed to look into the issues like the abolition of contract labour and regularisation of  Provident Fund, ESI and bonus payment. Trade union leaders have agreed to help in the implementation of the productivity clause which was introduced in the tripartite agreement signed on January 2002. The workers getting total emoluments of more than Rs 100 per day will continue to do  so and wherever this was reduced the same will be restored from the date of settlement. It was also agreed that in determining the wages, employers` share of contributions towards EPF, ESIC  and STL costs will not be deducted from the emoluments of the workers. It was also decided that there willl be no victimisation of workers for participating in the strike.