Eighty year-old J K Jute Mills, the premier mill of the J K Group, today announced to shut down in the wake of alleged labour unrest and power supply problems, threatening 2,500 job losses.
J K Jute Mills, established in 1929 at this city known as 'Manchaster of the East', was closed in 2003 affecting the employment of about 3,000 labourers at that time, but reopened last year and owing to fresh problems, the management has announced to shut it down again.
The management had pasted a notice on the gate late last night to announce its closure because of alleged labour unrest and the power supply problems.
A management spokesman said the decision had to be taken after the capacity of the unit had come down drastically.
Meanhwile, a situation of confrontation prevailed as the labourers who were inside the mill premises in the night duty had to remain there, while others tried to enter.
The labour department sources said the management had announced to close its operations but they were unable to say anything about 'lock-out'.
The police force had been deployed at the unit to avoid any law and order situation. However, the district administration has refused to come out with any official statement on the issue.