The Hindu Business Line : Coir workers plan massive stir

THE coir industry in Kerala has been hit by the strike going on for the past few weeks, which has intensified in recent days and worsened the situation as almost all the workers affiliated to different trade unions and small manufacturers have joined the fray.

The strike on Monday in Alappuzha, the centre of the coir industry, turned violent and the workers alleged to have damaged some of the major processor-exporting units.

The small manufacturers said that ever since the Government announced withdrawal of minimum purchase price as part of its liberalisation policies, they have not been not been able to pay minimum wages to their workers.

The workers are demanding that the Government implement the agreement signed between the processor exporters and the trade union representatives on December 26 last year, trade union sources told Business Line.

According to them, at the meeting held by the State Ministers of Agriculture and Labour, the major exporters had agreed to pay the small manufacturers three per cent more than the minimum purchase price for coir and coir products. "This has not been implemented so far."

However, according to official sources, the sanctity of minimum purchase price is no more existent following the withdrawal of this scheme.

Thus, it has become a problem now to fix a minimum price for the products.

The joint action council constituted to intensify the agitation has decided to continue with blocking of the major export houses till a positive decision is taken.

The Federation of Small-Scale Manufacturers is also actively participating in the agitation, the sources added.

The small-scale manufacturers alleged that they were not being paid the price compatible to the cost of production, adding that serious financial crisis had even driven some to commit suicide.

According to them, the emergence of intermediaries as "depot-men" who do the buying for the major companies aggravated the situation.

These middlemen bargain with the small manufacturers on behalf of the major processor-exporters, for which they get a commission.

If the major units bought coir and coir products directly from the small manufacturer-suppliers, the commission paid to the depot-men could be paid to these suppliers.

"The major companies have entered into agreement with the depot-men for supply of the products.

This system has left the small manufacturers with no alternative but to sell the products to the middlemen."

The joint action council will hold a meeting at SL Puram near Alappuzha on Wednesday where the State Opposition leader, Mr V.S. Achuthanandan, is expected to declare the launching of a mass agitation by coir workers and small-scale manufacturers.

Industry sources said that reduction in cost of production is essential for the exporters to be competitive in the international market, which is possible only if the raw materials are available at low rates.

But the workers alleged that the export units were competing among themselves by undercutting export prices, which in turn has made the poor workers and the small-scale manufacturers the victim of their latest marketing strategy.

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