Baba Paper Mill sacks 42 workers as power cuts shrink production
ITAHARI, Oct 26: Baba Paper Mill based in Sunsari district has fired 42 workers in the first phase of a massive layoff by the company with a total of 109 staffers due to get pink slips amid increasing power cuts.
“We have axed 42 daily-wage workers as we could not continue production in normal capacity due to severe shortage of power,” said Suk Dev Yadav, manager of the factory.
The company has decided to sack a total 109 workers including laborers and other workers to cope with the soaring loss.
The company, has also said that it would reinstate the laid off workers in case the factory can run in full capacity.
According to Yadav, the company has been employing 350 people currently. “We will recall them once the factory runs in full capacity,” Yadav said.
Power shortage has posed a serious challenge to the already struggling industrial sector in the country.
“The entire industrial sector has been hit hard over the last few years due to power shortage. Baba Paper is the latest example of how the industries are forced to shut their operation due to power shortage,” said Pashupati Muraraka, vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Meanwhile, the staffers who were fired on Friday have claimed that the company had sacked them without giving them a reasonable explanation. “The management has fired us without any giving us any valid reason. We have decided to protest against the management´s decision,” said Laxman Mehata, labor union leader at the mill.
Mehata they would also file a complaint at the labor office.
The workers who were fired had staged protests in front of the factory on Friday.
The management has, however, claimed that it had taken the decision after providing festival allowance and other perks to the workers.