JCF workers unlikely to get payoff package this year

The workers of Janakpur Cigarette Factory (JCF), who have been seeking golden handshake offer from the management, are unlikely to be paid off this fiscal year.
An official at the Ministry of Finance (MoF) said there was no such plan for JCF employees in the current fiscal year. “The government has not earmarked any fund for the purpose in the recently introduced full budget,” the official said. “However, a high-level team has already devised a plan to get rid of the employees.”
The team has representations from finance ministry, industry ministry and trade unions. All the 893 workers in the state-owned cigarette maker have sought voluntary retirement.
Krishna Gyawali, secretary at the Ministry of Industry (MoI), said the government might not be able to arrange fund for the purpose in this fiscal year.
According to officials, the government will have to allocate Rs 2.6 billion if it wants to meet all the demands of the workers. “But as per the existing rules, it will cost the government only around Rs 1.26 billion,” said Hari Sharan Pudasaini, under secretary at MoF who is also in the high-level team.
The team has valued JFC´s assets at around Rs 10 billion. “The total outstanding liability of the factory stands at around Rs 2.3 billion," said Pudasaini.
Employees at the factory want the affairs to end as soon as possible so that they can start something on their own. “We are tired of apprising the officials of our demand,” Arjun Chaulagai, one of the workers, said. “We would be able to start something on our own if we get compensation package at the earliest.”
JCF, which was established in 1965 with the support of the Russian government, ceased operations in 2010/11 after it failed to compete with private players.