Srinagar, May 4: Government decision to close down 10 units of JK Industries Ltd is likely to hit a roadblock as employees of these units have made the Golden Handshake or Voluntary Retirement Scheme contingent upon getting benefits under 6th pay commission.
 Sources in JKI told Greater Kashmir that the employees appointed before 90s had been demanding that the pecuniary benefits accruing to them under GHS or VRS should also incorporate benefits of 6th pay commission.
 Sources said around 300 JKI employees from various units had last year approached the court and succeeded in getting order: “status-quo be maintained on their appointments.”
 Those who have approached the court include 39 employees of Sundarbani, 47 of Rajouri, 89 of Silk Factory Rajbagh, 13 of SLV in Muthi and 89 employees of Plyboard units.
 “The employees filed petitions in Srinagar as well as Jammu wings of the High Court when GHS was first offered by the state last year. Now at this moment if government accepts their demands the units could be closed down. Or else the government’s proposal may be resisted fiercely,” sources said.
 JKI has 14 units of which 10 run in losses. The cumulative loss of the corporation stands at a whopping Rs 420 crores. Sources said most of these units had been selling-off their assets to pay for monthly salary.
 The units proposed for closure include: Resin and Turpentine factories in Rajouri, Miran Sahib and Sunderbani Jammu, Silk Factory Jammu, leather plant at Muthi Jammu, Government Knitting Factory Jammu, Ply-board Industries Pampore, Spinning Mills Rambagh Srinagar, Kashmir Filatures Rambagh and Government Spinning Mills Nowshera. The four ‘potentially viable’ units to remain functional are Wollen Mills Bemina, Silk Weaving factory Rajbagh, Joinery Mills Pampore and Joinery Mills Jammu.
 So far around 250 JKI employees have already taken voluntary retirement from the corporation. The government has now offered VRS to 1077 employees. Sources said majority of the applications for VRS had to be dropped due to employees demand seeking benefits under sixth pay commission.
 “On average we receive around 20 applications for VRS but most of them are conditional. It means employee isn’t ready to accept VRS without getting the benefits,” sources said.
 The problem does not end here. Sources said JKI required Rs 86 crores to bid adieu to its employees but right now it had only Rs 10 crore in hand.
 However, different government departments owe to corporation around Rs 119 crore on account of compensation for land acquired.
 “As per the guidelines we have to use 45 per cent of that money for VRS and GHS. We can manage that but we need to recover that money first,” sources said.
 Managing Director JKI, Shahnwaz Ahmad, said the corporation had the money to pay under GHS or VRS to the employees. “But we can’t afford the monthly salary bill of surplus staff we possess.”
 He, however ruled out that the resentment shown by the employees to GHS or VRS could delay the closure of the units.
 “The industrial units which have the money to provide GHS or VRS will go for it,” he said.

Lastupdate on : Tue, 4 May 2010 21:30:00 Makkah time
Lastupdate on : Tue, 4 May 2010 18:30:00 GMT
Lastupdate on : Wed, 5 May 2010 00:00:00 IST