The government has announced that production at all state-owned jute mills will be shut down after making full payments to workers. Ahmad Kaikaus, principal secretary to the Prime Minister, came up with the development at a media briefing at the Prime Minister's Office on Thursday.

The shutdown will show around 25,000 workers doors at 26 jute mills under a scheme called golden handshake.The decision was taken at a meeting presided over by Prime Minister Sheikh Hasina amid widespread unrest among jute mill workers over the decision to shut the loss-making mills. "The Prime Minister was very emotional when she took the decision today (Thursday)," said Kaikaus.

The move forms part of the plans to modernize the loss-making jute sector and turn into a production-oriented industry under the private-public partnership (PPP) model, according to Textiles and Jute Minister Golam Dastagir Gazi.The workers will be paid 50 billion taka, including retirement benefits. Prime Minister Sheikh Hasina directed the Jute Ministry and other authorities to make a list of workers in three days.

The 26 jute mills under the Bangladesh Jute Mills Corporation (BJMC) have been incurring losses for years while some private jute mills are making profits in the country.The state-owned mills incurred a cumulative loss of 106.74 billion taka, according to official data.

According to Textiles and Jute Secretary Lokman Hossain, the state-owned jute mills made profits in just four of the last 44 years. The government provided subsidies worth Tk 106.74 billion in this sector over the past 48 years.

Meanwhile, Bangladesh Jute Mills Corporation (BJMC) has decided to lay off 25 (twenty five) jute mills with effect from 1 July 2020. Workers of these jute mills will receive their remuneration for 60 (sixty) days of notice period, gratuity, provident fund money and golden handshake facility on gratuity.

Serving and retired workers will get their dues full in cash if the amount is not more than 2 (two) lakh taka. If the amount is more than two lakh taka, 50% of the sum will be paid in cash while the remaining 50% will be paid through savings schemes every three months.

All other arrears of BJMC will be cleared during 2021-2022 fiscal year.BJMC will also prepare a full list of all its equipment and assets and will constitute a task force for the safety and maintenance of these things.

A joint security team consisting of law and order forces and mill officials will be launched to ensure safety of all the jute mills which will be laid off.Education Ministry and authorities concerned will be requested to nationalize or include in monthly pay order (MPO) all the schools run by BJMC.

The jute mills which will be laid off are Bangladesh Jute Mills, Jatiya Jute Mills, Karim Jute Mills, Latif Bawani Jute Mills, Rajshahi Jute Mills, UMC Jute Mills, Juto Fiber Glass Industries Limited, Amin Jute Mills, Bagdad-Dhaka Carpet Factory, Gulfra Habib Limited, Gul Ahmed Jute Mills, Hafiz Jute Mills, KFD Limited, MM Jute Mills, RR Jute Mills, Mills Furnishing Limited, Alim Jute Mills, Carpeting Jute Mills; Crescent Jute Mills, Daulatpur Jute Mills, Eastern Jute Mills, Jessore Jute Industries Ltd, Khalishpur Jute Mills, Platinum Jubilee Jute Mills and Star Jute Mills.