CO-OPERATIVE

SPINNING MILLS
IN TAMILNADU
 CHAPTER IV

Ico OPERATIVE SPINNING MILLS IN TAMILNADU

4.1 INTRODUCTION:

The Textile Industry of Tamil Nadu has a significant presence in the National and

State economy. It is the forerunner in Industrial development and in providing massive

employment in the State. Handloom, Powerloom, spinning, Processing, Garment and

Hosiery are the various sectors of the Textile Industry in Tamil Nadu. It is the largest

economic activity next only to Agriculture in providing direct and indirect employment.

Handloom Sector occupies a place of pride in preserving the country's heritage

and culture and plays a vital role in the economy of the country. It has a long tradition par

excellence in its craftsmanship. The Powerloom Sector in Tamil Nadu has also been

playing an important role in meeting the clothing needs of the people. The Powerloom

Sector in Tamil Nadu is next only to Maharashtra in terms of number of looms.

The Textile Sector in Tamil Nadu is predominantly in the private sector, spinning

oriented and labour-intensive because of the preponderance of the decentralized Sector in

most of the segments of the industry. The Textile Industry has a very important role to

play in the industrial field with regard to employment potential, overall economic and

commercial activities. This Industry enables the Central and state Governments to earn

substantial revenue besides foreign exchange through exports.

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4.1.2 ACTIVITIES OF THE TEXTILE SECTOR

The primary object of the Department of Handlooms and Textiles is to promote

the harmonious growth of Handloom, Powerloom and Textile Sectors and to strive for the

welfare of all concerned particularly that of the weavers and workers.

The Director of Handlooms and Textiles is the "Functional Registrar" for the

Handloom and Powerloom Weavers' Cooperative Societies and other Cooperative

Institutions connected with the Industry throughout the State and is vested with powers

delegated under the Tamil Nadu Cooperative Societies Act and Rules.

The Director of Handlooms and Textiles also functions as the "State Textile

Authority" and as such has a general responsibility to facilitate the smooth functioning of

the Spinning and Textile Mills, Hosiery units, Handlooms and Powerlooms. The

Department has the overall responsibility for ensuring the availability of raw-materials to

all sectors of the industry, augmenting the production of yarn and fabrics at reasonable

prices as well as creating as environment to promote the sale of end products. The

Department has a special responsibility for the supply of yarn and other raw-materials to

the Weavers' Cooperative Societies and arranging for marketing of the finished products

through Co-optex, Loom World, Society's own showrooms and other selling outlets.

The Department of Handlooms and Textiles also promotes the Socio-economic

well-being of the weavers and is incharge of implementing various welfare

developmental schemes for their welfare through 18 circle Deputy Directors / Assistant

Directors of Handlooms and Textiles.

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 Various Institutions functioning under the administrative control of the

Department are as follows:-

> 1232 Handloom Weavers' Cooperative Societies

D 133 Powerloom Weavers' Cooperative Societies.

D 18 Cooperative Spinning Mills (At present, 5 Cooperative Spinning Mills viz.

Anna, Bharathi, Pudukottai, Kanyakumari, Dharmapuri are functioning)

> Tamil Nadu Handloom Weavers' Cooperative Society Limited (Co-optex),

Chennai.

D Tamil Nadu Zari Limited, Kancheepuram

D Tamil Nadu Handloom Development Corporation Limited, Chennai

> Tamil Nadu Cooperative Textile Processing Mills Limited, Erode

D Tamil Nadu Textile Corporation Limited, Coimbatore

> Tamil Nadu Cooperative Spinning Mills Federation Ltd (TANSPIN), Chennai.

4.1.3 HANDLOOM SECTOR

As per the 1987 Handloom Census, there are 4.29 lakh Handlooms in Tamil Nadu.

Out of which, 2.17 lalch are under Cooperative societies. Handloom Industry in Tamil

Nadu provides employment for a population of about 6.63 lalch. Out of these, 2.64 lalch

are in the cooperative Societies. As on 31.03.2006, there are a total of 1232 Handloom

Weavers' Cooperative Societies in Tamil Nadu almost evenly spread over both rural and

urban clusters.

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 The average annual production of handloom cloth in the State is about 2500 lakh

metres, of which contribution made by handloom cooperatives is around 1200 lakh

metres. An Average annual sale of handloom cloth is Rs.1500 crore, of which, the sales

by handloom cooperatives accounts for Rs.700 crore. The average annual export of

handloom cloth by Tamil Nadu is Rs.600 crore, of which export sales by Handloom

cooperatives through Merchant Export is around Rs.260 crore.

4.1.4 POWERLOOM SECTOR

There are 4.50 lakh Powerlooms in Tamil Nadu, providing employment to about

9.14 lakh workers. Out of this, 32,087 Powerlooms are under cooperative sector.

The Powerloom Weaver's Cooperative Societies mainly produce the cloth

required for the Scheme of Free supply of Sarees and Dhoties and Scheme of Free supply

of Uniforms to School Children. The average annul cloth production by Powerloom

weaver's Cooperative Societies is around 1000 lakh metres valued at Rs. 160 crore.

The Powerloom Industry faces two major challenges at present — one pertains to

"low productivity" and the other relates to "Low level of skills of the persons engaged"

in the Industry.

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4.1.5 TEXTILE SECTOR

(i) TEXTILE MILLS

Textile Sector in Tamil Nadu has been a forerunner in providing massive

employment, and it is 'predominantly spinning-oriented' and that too of cotton spinning.

There are 2950 large, medium and small spinning Mills in India, of which, 1734 Mills are

located in Tamil Nadu. These include 18 Cooperative Spinning Mills, 8 National Textile

Corporation Mills and 26 Composite Mills. The spinning capacity of these Mills is 16.44

million spindles with a labour force of about 2.31 lakh. The quantity of yarn produced by

this State is slightly more than one third of the total yarn production in the country.

During the year 2004-05, 3223.52 million kg of yarn was produced in the country,

of which, Tamil Nadu contributed 1261.98 million kg of yarn. Successively this State is

the No. 1 Producer various varieties of yarn in the country.

The Government will devise suitable measures to facilitate that the Textile

Industry grows at the rate of 18% per annum. The Government will also take efforts to

address the labour laws related issues aiming at achieving the above growth. The required

skilled labour force will be generated by creating new infrastructure and also by

strengthening the existing ones.

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(ii) COOPERATIVE SPINNING MILLS

In Tamil Nadu, there are 18 Cooperative Spinning Mills situated in various

Districts, which are started between 1958 and with an object of providing un-interrupted

supply of quality hank yam to the Cooperative Handloom Weavers at concessional rates.

The installed capacity of 4.69 lalch spindles have since been downsized to 2.86 lakh

spindles.

The 18 Cooperative Spinning Mills are situated in prominent Districts of Tamil Nadu as

detailed below:-

1. South India Cooperative Spinning Mills, Pettai, Tirunelveli.

2. Srivilliputhur Cooperative Spinning Mills, Srivilliputhur, Virudhunagar District.

3. Tiruchendur Cooperative Spinning Mills,Ikazareth, Thoothukudi District.

4. Salem District Cooperative Spinning Mills, Salem.

5. Erode District Cooperative Spinning Mills, Dharapuram, Erode District

6. Katur District Cooperative Spinning Mills, Karur.

7. Kanyakumari District Cooperative Spinning Mills, Aralvaimozhi, Kanyakumari

District.

8. Kancheepuram Kamatchiamman Cooperative Spinning Mills, Kancheepuram.

9. Villupuram District Cooperative Spinning Mills, Saram, Villupuram District.

10.Vellore District Cooperative Spinning Mills, Ariyur, Vellore District.

11.Nagapattinam District Cooperative Spinning Mills, Manalmedu, Nagapattinam

District.

12. Madurai District Cooperative Spinning Mills, Melur, Madurai District.

13. Dharmapuri District Cooperative Spinning Mills, Uthangarai, Dharmapuri District.

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 14.Anna Cooperative Spinning Mills, Andipatti, Theni District.

15. Bharathy Cooperative Spinning Mills, Ettayapuram, Thoothukudi District.

16.Ramanathapuram District Cooperative Spinning Mills, Achanlculam,

Ramanathapuram District.

17.Pudukottai District Cooperative Spinning Mills, Aranthangi, Pudukottai District.

18.Misereor Cooperative Spinning Mills, Madurai.

The Hank Yarn requirement of the Handloom Weavers Cooperative Societies and

the Cone Yarn requirement of Powerloom Weavers Cooperative Societies have been met

by the Cooperative Spinning Mills produced 157.81 lath Kgs., by conversion to 40s yam.

The Textile industry is suffering from acute financial crunch due to the general

recession in the Textile Industry like, decline in exports, increase in the cotton prices and

low realization of yarn price, etc. Because of these reasons, several textile mills have

already been closed or at the verge of closure.

Voluntary Retirement Scheme was introduced in the Cooperative Spinning Mills

and so far 4615 workers / staff were relieved with the terminal benefits amounting to

Rs.42.18 Crore. It has been proposed to relieve more number of workers / staff on

Voluntary Retirement Scheme in case of closure of the Mills, so as to avoid any human

problems at the time of closure.

Presently, the Anna Cooperative Spinning Mill at Theni and Bharathi Cooperative

Spinning Mill at Ettayapuram are working on business profit. Effective steps are being

taken to get I.S.O. 9000 Certification for these two Cooperative Spinning Mills.

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 The Government have constituted a Committee to decide the modalities for

privatization of loss making Cooperative Spinning Mills (except Anna and Bharathy) and

to begin with, four non functioning Cooperative Spinning Mills (viz) Misereor, Vellore,

Villupuram and Madurai Cooperative Spinnning Mills would be privatized and the land

and building of Vellore Cooperative Spinning Mills could be used by the Government for

setting up of Medical College and the other assets of the mill may be sold and the

proceeds utilised for Voluntary Retirement Scheme of the workers.

The Committee decided that, since these mills are governed by the Tamil Nadu

Cooperative Societies Act, they can only be liquidated and not privatised. Based on the

recommendations of the committee, the Director of Handlooms and Textiles had

appointed Inspection officers to Vellore, Villupuram, Madurai and Miseror Cooperative

Spinning Mills under section 82 of the Tamil Nadu Cooperative Societies Act 1983, to

ascertain the state of affairs of the Mills. As per the recommendations of the Committee /

Report of the Inspection Officers, proposals sent by Director of Handlooms and Textiles

is under consideration of the Government.

This apart, the committee have also decided to appoint Inspection Officers for the

remaining 12 Cooperative Spinning Mills (except Anna and Bharathy Cooperative

Spinning Mills). Accordingly, Inspection Officers have been appointed in respect of 12

Cooperative Spinning Mills under Section 82 of the Tamil Nadu Cooperative Societies

Act, 1983. Based on the recommendations of Inspection Officers and the Committee,

proposals of the Director of Handlooms and Textiles is under consideration of the

Government.

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 Out of 18 Cooperative Spinning Mills set up in Tamil Nadu, the following 5

Cooperative Spinning Mills are functioning at present.

1. Bharathi Cooperative Spinning Mills, Ettayapuram.

2. Anna Cooperative Spinning Mills, Andipatti.

3. Dharmapuri District Cooperative Spinning Mills, Uthangari.

4. Pudukottai District Cooperative Spinning Mills, Aranthangi.

5. Kanyakumari District Cooperative Spinning Mills, Aralvaimozhi.

STEPS TAKEN BY THE DEPARTMENT AND PROGRAMMES FOR

2002-2003

1. It has been proposed to continue and implement the Scheme of Free Supply of

Uniforms to School Children during the year 2002-2003. Nearly 194 Weavers

Cooperative Societies covering 5,000 Handloom Weavers are getting Continuous

employment through this Scheme.

2. It has been proposed to continue and implement the various Development

Schemes such as Rebate Subsidy Scheme, Deendayal Hathkarga Yojana Scheme,

Interest Subsidy Scheme, 90% Loss Guarantee Scheme, etc. during the year 2002-

2003 for the survival and development of Handloom Weavers Cooperative

Societies.

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3. It has been proposed to continue and implement the following Welfare schemes

during the year 2002-2003, for improving the socio-economic conditions of the

poor Handloom Weavers:

a. Handloom Weavers Savings and Security Scheme.

b. Group / Self Insurance Scheme for Handloom Weavers.

c. Central Thrift Fund Scheme.

d. Cooperative Handloom Weavers Family Pension Scheme.

e. Cooperative Handloom Weavers Old Age Pension Scheme.

f. Weavers House-cum-Work shed Scheme.

g. Work shed Scheme.

h. Health Package Scheme.

i. Awarding Scholarship under Dr. M.G.R. Handloom Weavers Welfare

Trust.

j. Stipend to the Students of Indian Institute of Handloom Technology.

k. Prize Award Scheme for Best Exporters.

1. Prize Award Scheme for Best Weavers for New Designs.

4. Primary Weavers Cooperative Societies were encouraged in Export Oriented

Production, to face the World Trade Organisation (W.T.0) regime. During the

year 2001-2002, Handloom goods worth Rs.146.25 Crore were exported by the

Weavers Cooperative Societies. It has been programmed to increase the export

sales to the extent of Rs.175.00 Crore during the year 2002-2003.

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5. Export Interaction centre has been set up at the Directorate to facilitate the

Exporters to have a look at the products of Handloom Weavers Cooperative

societies.

6. Steps were taken to register the traditional products such as Kancheepuram Silk

sarees, Bhavani Jamaldcalam and Madurai Sungudi under Geographical

Indications Act. The registration process of the above Handloom varieties under

Geographical Indication Act will be commenced soon after the Rules come into

force.

7. To give marketing support to Weavers Cooperative Societies, special type of

Showrooms under the Brand Name "Loom World" has been started at Chennai

Anna Nagar, Erode and Coimbatore and functioning well. It has been proposed to

launch "Loom World" showroom at Trichy during the year 2002-2003.

8. Based on the recommendations of the Committee, the Government has ordered

that 10,000 Handloom Weavers be identified for product diversification, of which

5,000 Handloom Weavers towards value added varieties and the remaining 5000

Handloom Weavers for export oriented products with tie up arrangements with

Co-optex International. Accordingly, the Department is taking steps to identify

Handloom Weavers, so as to implement the Scheme during the year 2002-2003.

9. The Government has constituted a Committee to draw up a new scheme for

upgrading the low value Powerlooms into sophisticated Powerlooms and the

recommendations of the Committee is under consideration of the Government.

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10.The Department has laid more emphasis on product diversification and Design

Development. The Weavers Cooperative Societies now started producing

Kalakshetra design sarees and are being sold out without any stagnation. It has

been proposed to increase the coverage of looms for production of kalakshetra

Design sarees during the year 2002-2003.

11.Production of marketable / exportable varieties is being encouraged by the

Department and suitable action plan will be given to the Weavers Cooperative

Societies depending upon the Market trend, so as to increase the sales during the

year 2002-2003.

12.The Tamil Nadu Handloom Workers (Conditions of Employment and

Miscellaneous Provisions) Act, 1981 has been enacted for the welfare of the

workers in the Handloom Industry outside the Cooperative fold. This aims at

regulating the working conditions of Handloom Weavers besides ensuring

security of employment and other connected matters. The implementation of the

Act is being done by the Department of Handlooms and Textiles.

13.It has been proposed to construct 250 House-cum-Work sheds under Weavers

House-cum-Work shed Scheme during the year 2002-2003.

14.It has been proposed to construct 600 Work sheds to the dwellings of the Weavers

under Work shed Scheme during the year 2002-2003.

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4.1.6 GARMENTS AND HOSIERY SECTOR

The Garments sector is one of the fast growing segments of the Textile Industry in

Tamil Nadu. There are about 400 garment units in the State providing employment to

about 2 lakh persons contributing Rs.2500 crore in foreign exchange.

In Hosiery sector in the State, most of the units are located in Coimbatore District.

There are about 8000 hosiery units in India, of which 4000 units are located in Tamil

Nadu. Tamil Nadu is providing large scale employment to around 3 lakh persons and

contributes 44% Country's export. It contributes about Rs.8000 crore in foreign exchange.

4.1.7 PROCESSING SECTOR

Processing is an important value added segment in the Textile Sector. There are

about 10397 Hand Processing Units and 2510 Power Processing Units in India, of which,

2614 Hand Processing Units and 985 Power Processing Units are located in Tamil Nadu.

Out of 985 Power Processing Units in the State, 713 Units are located in Tiruppur.

The availability of processing facilities is inadequate and also the technology

adopted is low since most of these units are of hand processing type.

The State Government is taking initiative to set up one exclusive Processing Park

at Cuddalore under the Scheme of Integrated Textile Park launched by Government of

India. SIPCOT has allotted 300 acres of land for this purpose and the works have

commenced.

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4.2 ENVIRONMENTAL AND HUMAN RESOURCE DEVELOPMENT

ISSUES:-

To attain the growth rate at 18% in textile sector as envisaged in the National

Textile Policy 2000, it is necessary to create a conducive atmosphere by providing:- (i)

Good environment and (ii) Adequate skilled manpower to the growing industry.

Since, water is required in plenty for the processing units situated in and around

Coimbatore, Tirupur, Erode, Karur, etc., it is necessary to adopt appropriate technology.

Therefore, the focus of Government will be to identify and bring in appropriate

technology to sort out environmental issues in consultation with the industry stakeholders.

4.3 TRAINING

Thanks to the liberalization of global trade, the demand for the Indian Textile

goods has increased manifold. Textile units have started installing Modern Hi-Tech

machineries to increase the production capacity and also to meet the international

standards in quality. This necessitates supply of skilled manpower in more numbers to the

textile industry.

Government will take suitable steps to start training courses covering the process

of ginning to finishing in Textile Sector in the existing Industrial Training Institutes (ITIs)

and Polytechnics to meet the growing demand of Sector and the rural youth-particularly

in the Southern and Backward Districts will be trained and suitably accommodated in the

textile units, across the State.

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4.4 TAMIL NADU COOPERATIVE SPINNING MILLS FEDERATION

LIMITED, (TANSPIN) KURALAGAM II FLOOR, CHENNAI — 6000 108.

TANSPIN was set up by Government of Tamil Nadu during the year 1994 as an

Apex Organisation for 18 Cooperative Spinning Mills in Tamil Nadu with the paid — up

Share Capital of Rs.25 Crores.

IMPORTANT OBJECTIVES:

To undertake or arrange to purchase and supply Quality ginned cotton and other

man made fibres for the requirements of the Member Mills at competitive rate.

• To undertake or arrange for sale of yarn in different forms of the member

mills in domestic and export markets.

• To co-ordinate and facilitate the working of the affiliated spinning mills

and to assist in promotion and organization of new spinning mills and to

do all service functions for the affiliated spinning mills.

• To suggest measures for increasing the operational efficiency of the

Spinning Mills

• To undertake liaison work with any Government, financial or other agency

on behalf of the Member Mills.

• To enter into transport contract on behalf of the Member Mills for

transportation of Cotton and Yarn.

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 • To advise or render technical or other assistance to the Member Mills in

the selection, purchase, installation and maintenance of plant and

machinery and other equipment.

This federation is being advised by the Board under the Chairmanship of the

Secretary to Government, H.H.T & K Dept., Chennai. Besides, Chairman, there are 13

Directors working on the Board.

4.5 EXPORT OF HANDLOOM FABRICS BY CO-OPERATIVES

India is one of the Signatories of the W.T.O. Agreement, which will be in force

from 1.1.2005. The Agreement of Textile and Clothing, which is one of the Associate

Agreeements of the W.T.O. Agreement, covers the World Textile Trade. Therefore, in

order to compete with the Global Market and to make the Weavers Cooperative Societies

run on vaiable line and also to give continuous employment to the Handloom Weavers,

the Department has laid much emphasis on exports by encouraging the Weavers to resort

to the Export Oriented Production. More than 15000 looms in 265 Weavers Cooperative

Societies are now engaged in Export Oriented Production through Deemed Exports. The

average annual export turnover by these societies is around Rs.150.00 Crore.

To facilitate interested buyers, an EXPORT INTERACTION CENTRE has

been set-up in the Directorate of Handlooms and Textiles, Kuralagam, Chennai, to secure

orders, Co-ordinate, facilitate and implement Export Marketing Activities. The Export

Interaction Centre as an information-cum-display Centre of the various varieties

produced in Tamil Nadu in Handloom Weavers Cooperative Societies.

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4.6 HANDLOOM COOPERATIVE MARKETING COMPLEXES

To market Handloom products produced by Weavers Co-operative Societies, a

state level Apex-Marketing Co-operative Society. "Co-optex" has been established. Co-

optex has wide network of show rooms in and outside of Tamil Nadu. Further, as part of

Market promotion strategy with an inbuilt objective to provide continuous employment to

the Weavers, Marketing Complexes have been set up in the following places by the

Department of Handlooms and Textiles.

a) Kanchi Cooperative Silks, Anna Salai, Chennai.

b) Ezhukadal handloom Showroom, Madurai.

c) Tamil Nadu Handloom Cooperative Marketing Complex, Dharmapuri.

d) Tamil Nadu Handloom Cooperative Marketing Complex, Pondicherry.

As part of its marketing strategy, Cooperative Societies have now been

encouraged to market their products under the brand name "LOOM WORLD" which

has been performing well at Chennai Anna Nagar, Coimbatore & Erode with an idea to

promote the sale of handloom products produced by the Weavers Cooperative Societies.

It has been programmed to popularise the "LOOM WORLD" concept through the

existing chain of Cooperative Society's outlets at various districts of Tamil Nadu, as good

response is received from the Public is encouraging.

The various varieties of handloom products exhibited in the "LOOM WORLD"

showroom includes, Silk and Cotton Sarees, Chudithar, Silk and Cotton Dhoties,

Angavasthrams, Shirtings, Lungies, Home Textiles such as Bed Spreads, Furnishings,

Napkins, Kerchiefs, Towels and Footmats.

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4.7 NON FUNCTIONING OF CO-OPERATIVE SPINNING MILLS:

Out of eighteen co-operative spinning mills in Tamil Nadu, only five spinning

mills are functioning at present. Out of Thirteen non-functioning co-operative spinning

mills, only three spinning mills are analysed for research purpose. They are 1. Salem

District Cooperative Spinning Mills Ltd, Salem. 2. South India Cooperative Spinning

Mills Ltd, Pettai, Tirunelveli. 3. Periayar District Cooperative Spinning Mills Ltd,

Dharapuram, Erode District.

4.7.1. Salem Cooperative Spinning Mills Ltd:

The cotton textile industry was the base on which Indian Industrialisation was

built more than a hundred years age. The industry was started largely as a spinning

enterprise and gradually developed into a fall fledged composite one.

4.7.1 (a) Description of the Area:

Salem has several competing meaning and origins. The Chief among them are the

following five terms Cheram, Sailarn, Salya, Seylai and Seelam.

Located in the tropical, Salem was forest land, Some archaeologists believe that

Paleolithic human occupation did exist in the mountains, forests and river valleys of

Salem and this human occupation must have formed part of a border Paleolithic culture

system of South India, The present Salem District is certainly of the principal Neolithic

regions of South India, The mountains of Servarayan, Bodhi Malai, Kalarayan and Kolli

Malai, have yielded a number of Neolithic implements.

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 Salem co-operative spinning mills is in the area of Ammapet foundation stone

was laid in a beautiful manner in 1961. After three years in 1964 the mill was

functionally opened and inaugural function was conducted by the Chief Minister of Tamil

Nadu Thiru.Bagthavachalam in his golden hands and also by Thiru.Mariappan, M.L.A.,

Primary investment was merely 90 lakhs and the mill was started with 150 workers. The

little number of workers was distributed to all departments in starting period. A) Blow

Room-1 Shift-3 workers, b) Carding-15 workers c) Drawing, simple-24 workers, d)

Spinning-90 workers, e) Reeling —40 workers, 0 Top carrier-6 workers, g) Bundling and

P acking-10 workers.

4.7.1 (b) Department and working conditions:

The nature of the production process carried on in this mill can be described as

the conversion of raw cotton into yarn. The following of methods are considered to be the

process by which the conversion of raw cotton into yarn is being taken place.

• Cotton received at the godown

• Mixing at blow room

• Blow room

• Carding

• Drawing

• Simplex

• Spinning

• Cone winding (or) Reeling

• Baling (or) cone packing

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4.7.1 (c) No. of Labourers and Office workers:

In 1964 only 150 workers worked in the mill. In 1999-2000 only 900 workers

were utilized and rest of 400 workers were removed by management through compulsory

VRS. 1984 was the golden period to the mill.

4.7.1. (d) Details about Machineries:

New machines had not been installed since 1999. Blow room machine, Carding

machine Silver lap machine, Ribbon lap machine, comber, Drawing machine, Simplex

machine, Spinning, core winding, Doubling, Reeling machines, Baling machine, Lathe,

grinding machine, Drilling and welding machines were in the mill.

4.7.1. (e) Labour Unions:

Labour union or Trade Union is workers' association for workers. It is inevitable

nowadays. One mill one union is a good concept. Many unions create problems. Few

unions may solve them. SCSP had 150 workers in 1964 and workers formed only one

labour union (i.e.) Janatha Labour Union. The mill had been developing from 1964 to

1984. Twenty years were the prosperous period to the mill. Workers were recruited

simultaneously through different tests. One union achieved a lot but in 1999-2000,

12 unions were there, not for solving but for creating problems.

12 Unions:

1) ADMK, 2) DMK, 3) BJP, 4) INTUC, 5) LTF, 6) INTC, 7) Party of Ceylon

Repartrials, 8) MDMK, 9) Rajini Mantra Party, 10) Sengunthar Party, 11) PMK,

12) Ambedkar Party out of 12 only ADMK, DMK, INTUC, INTIC and Ambedkar were

functioned well.

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4.7.1 (f) Special feature of the Spinning MW:

In beginning 7 members were in the Directors Board. After two years in 1966

Bhoovana Jayaram was appointed as Manager and Gopalan as Factory Manager 8%

Bonus was only distributed to workers in beginning but in 1983-84 32% bonus amount

was fixed as super bonus. The SCSP was obtained 3 times merit prizes as top rank

spinning mill in India. All 18 Spinning mills followed the policy and fixation of Bonus

amount of SCSP. SCSP was the only Spinning mill which gave 32% bonus amount at

that time. The mill deposited Rs.310 Crores in Salem Cooperative bank as fixed from

profit in 1980s. The mill was developed well during the periods of Diwan, Akbar,

Viswanathan and Malaisamy. The mill had given all facilities and others. Doubling, cone

winding machines were erected during that period. Half Kilogram jaggary was given to

employees. Employees possessed 15 years service were given wrist watch. Rawrice,

Sweets, turmeric plant were given to workers during Pongal Festival. During Deepavali

employees were given Bonus amount and sweets. Two sets of Baniyans, trousers were

given to employees. Clothes and consumer commodities were given to employees in 8

months installment basis. Workers were given House loan, vehicle loan in low rate of

interest by Employees Third society. Inducement bonus was given to workers from profit.

Tea and bun were given to workers during night shift by management. If workers met an

accident during working hours they would have been given half salary amount and leave

facilities. In 1984 the mill earned enormous amount of profit, so other mill was started as

B mill. The B mill was started in 1984 just like A mill. Recruitment of the workers were

done by interview method. a) One Kilogram yam can be produced in one minute time in

spinning department, b) Rewinding section workers were appointed through other

method, c) Packing section workers were recruited through basis of bundle. Workers

were recruited on the basis of efficiency.

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4.7.1 (g) Heavy losses and lock out:

The mills had not been functioning since 31-03-2004 Number of reasons are

given by employees and from management side.

(i) Workers' Welfare:

a). Workers welfare benefits schemes were not implemented since 1994,

b). Uniforms had not been distributed since 2000, c). Wages were not properly distributed

to workers. d). Workers had not been paid correct wages since 1996. e) 10 months

salary amount were not given to workers and workers suffered a lot in 2001 but these

amount were given after lock out. F). Management exploited more from workers

g). Total number of workers was reduced from 1300 to 900 in 1999-2000.

ii) Illegal Activities:

All ideas strongly were given against management by workers.

a). False account was maintained for purchasing spare parts for machines by

management, b) Machines and their spare parts oftenly were robbed and stolen. c)

Illegal activity in major level was low quality of cotton purchases instead of high quality

but reports and account was framed instead of low to high. Enormous amount was stolen

by management, d) Auditing period false account only was shown by management, e).

Low quality cotton gave more production cost instead of profit, f). One kilogram of low

quality cotton is equal to half kilogram of real cotton. So getting profit was difficult task.

After the regime of MD Viswanathan all persons they did illegal activities for closing the

mill, g) ADMK, DMK, TNTGC, TNTC, Ambedkar trade union leaders were also

indulged in corruption with management, h). MD Velmayail showed false report for

purchasing cotton, for that purpose he was imprisoned. He also did not remit 2 years

employees PF amount.

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iii) Opinion of Management:

Management side reveled some blaming news against workers.

a. Some workers normally came to mill not in punctual and also they came after

drinking arrack and liquor.

b. Workers did not do their works properly without any duty conscious.

c. Workers, they did not work well, they spent time unnecessarily during working

hours and showed less efficiency and produced only little.

iv). Ideas of workers:

a. Low quality of purchasing cotton created more labour time, more depreciation

of machines, more electricity charges and more wages. Production and profits

were contracted by low quality of cotton. Low quality of cotton was the major

cause for heavy loss.

b. 125 workers formed Gandhi Kamaraj Sangam for getting works in the mill.

They want; mill must be opened for welfare of workers.

c. Factory Manager, Managing director, Office manager, Assistant Manager,

Store keeper did not work properly for prosperous of the mill. They were main

important persons for sickness / and closing.

v. Strikes:

Number of strikes was conducted by workers for bonus amount and for getting

proper wages. The last strike was conducted by workers on 30-01-2004 for getting 8

months amount. This was the long period strike. The super, three times winning mill was

closed on 31-03-2004 by Labour problems and inefficient management.

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4.7.2 Pettai cooperative spinning mill:

The state government has apparently decided to wind up both units of the

cooperative spinning Mills at Pettai near here as the administration had asked its

permanent employees to submit voluntary retirement proposals on or before March 15,

2004.

Established in 1958 by late K.Kamaraj when was chief minister, the mill had a

workforce of 600 permanent employees, 40 administrative staff and 200 casual labourers.

Though the mill, with 50,080 spindles, was said to be making profit till early 90s, it

started incurring huge upgrade the machinery on a par with private mills in various parts

of the state.

Because of the accumulated losses over the years, the administration could not

pay salaries to its employees for the past several months, leading to a strike by the

workers. The employees, affiliated to trade unions of Opposition parties, even opened a

gruel centre on the premises of the mill last year, forcing the administration to pay salary

for June 2003.

While the salary for the entire workforce was put on hold, the administration was

not even able to pay electricity bill and hence, the Tamil Nadu Electricity Board

disconnected power supply on February 28, 2004.

The administration pasted an announcement on the gate, asking the employees to

file their voluntary retirement proposals on or before March 15, 2004.

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 "While about 850 families, which are totally replying upon this mill, are at a

crossroads, the machineries of the mill worth several crores have started degenerating, as

no maintence has been done for the past several months. The closure of the mill will

certainly have an adverse ifhpact directly on the economy of Tirunelveli, which once

provided job opportunities for the people who migrated from Ramanathapuram due to

famine. Now, the heads of theses distressed families have to search for some greener

pastures in other districts to save their families members," said an AITUC functionary.

4.7.3. Periyar District Co-operative Spinning Mills Ltd., Dharapura:

Coimbatore District Co-operative Spinning mill name is changed into Periyar

District Co-operative Spinning mills after the creation of new district of Periyar District

from Coimbatore. In the old mill spindles installed was 12420 total including expansion

is 25020, under expansion 12600, activisation during 1977-1260, 1979-7140, 1979-4200

and additional spindles under expansion of 10 frames were running. Though the mill,

with 30080 spindles, was said to be making profit tell early 90s, it started incurring huge

loss, as the government was not reportedly prepared to upgrade the machinery on a part

with private mills various parts of the state.

Because of the accumulated losses over the years, the administration could not

pay salaries to its employees for several months, leading to a strike by the workers. The

employees, affiliated to trade unions of opposition parties, even opened a gruel centre on

the premises of the mill last year, forcing the administration to pay salary. The mill was

closed by inefficient administration and Labour problems in 2004.

This is compared with functioning spinning mill Kanyakumari District Co-

operative Spinning mills through orthogonal polynomial analysis.

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