A Tale of Lost

Economy:
Manchester of the
East

ISHAAN SINGH
KARTIK BAJAJ
MEENAL GUPTA
SAIKAT CHATTERJEE
 PREFACE
Cities have the capability of providing something for everybody, only because, and only when,
they are created by everybody. Jane Jacobs

As we started our study on the textile mills in Kanpur, we had no idea that this work will lead us
to a different territory- to parts of our own society hitherto unknown to many of us. We roamed
across the large mill compounds and passed by the giant chimneys, and peered through the
broken windows in deserted buildings. All we could see is wilderness, all we could hear is
otherworldly silence. It was very hard for us to believe that once these mills were the center of
this busy industrial city- providing employment to thousands of skilled and unskilled workers
and helped the city earn the prestigious title Manchester of the East. What remains today is the
shadow of the past, legacy of the old days and several untold stories- hundreds of undocumented
tales, unwritten accounts of grief and sorrow and pain and tears. This is where our journey starts.
These mills are relics of the past- their machineries are junk scraps already sold or lost, large
compounds are covered with bushes and shrubs- but where did all people go? What happened to
them? Where are they now? These are the questions that made us curious- and we started our
research to find the answers.

In course of our study we reached out to people from different social strata. We talked to several
generations of people, people from different professions- former workers, labour leaders,
government officials and guards, common people in tea shops and street vendors- we visited
several colony areas to talk to the families and attended labour forum and met academicians to
understand the lives of factory workers post mill closure. We dedicate this work to those
countless workers- who lost everything and struggled all these years for survival, who were
neglected and ignored by the great state machineries and administration at all levels. Those are
the people who built the economy with their blood and sweat, and in turn lost basic economic
means to survive with dignity.

Ishaan Singh
Kartik Bajaj
Meenal Gupta
Kanpur, 2017 Saikat Chatterjee

1
 PROLOGUE

January 5th, 2017 marked the beginning of a course that changed the way MBA batch of 2015-
17 understood most of the socio-political aspects related to the business. It was 4.58 PM,
Professor Varman was already in the class while most of us were on our cycles paddling as fast
as we have done in last one year, we have kind of lost the habit of reaching our classes on time,
after all sir very well puts it, we are retired fellows. As the clock showed 5 PM, he began looking
around the partially filled class room which by the way was filling fast.

What is your expectation from this course? This is how sir began the discussion that day. Each
one of us in the class was expected to think and come up with an answer that can make some
sense. I want to learn how the businesses give back to the society from which it takes all its
profit, I want to understand how the people in power decide things for people who have no
power and do justice to them etc. Many such queries started pouring in and they kept coming
out one after the other for the next 50 minutes. We knew we were in for a ride here, it is going to
be beyond books, beyond what the media and state tells us, beyond what we have learned in the
last one year at IIT K. We knew that time to unlearn and re-learn was back again and it was full
of excitement.

Professor Varman doesnt wait for the course to mature before striking the home run and our
very first assignment was ready to set the tone of the course, Roger and Me, A movie which
gave a gist of an explicit relationship between corporations and the society. It showed us the
bitter world of profits and how the people of Flint city, who have been the heroes for establishing
a global giant like GM were left hopeless and helpless by their own employer. It opened a new
perspective where in for the first time in MBA, demand and supply werent the most important
factors. Profit was not the first concern but people were. We realized that when businesses shift
or close down in search of or in deprivation of profit, economically that might make sense but it
completely erodes a civilization. The cost benefit analysis for the first time in our heads had a
component of this cost that the societies have to pay in such situations, which we really never
considered. This was it, we knew what our project topic was; we wanted to explore the Flint City
of India; we wanted to explore Kanpur, The Kanpur, which was the Manchester of the East Vs.

2
the one we see today. Since it was a broad study, sir asked us to narrow down to find a focus. We
were confused and had little idea about how should we proceed. So, we decided to visit the mills
and see where it takes us. After doing secondary research about the closure of Kanpur textile
mills, we decided to visit the Muir mill located near parade chowk in Chuniganj area. Luckily,
we got a chance to interact with a few guards who were there when the time mills closed down,
along with a few workers who were associated with the mill when it was losing its charm in
1990s. The kind of stories these people told us shocked us to the core. Instantly, we decided that
our focus will be on the impact of the closure of mills on the employees. We thought of going
deep, analyzing the situation and most importantly, validating the facts and the stories that we
will come across over the coming four months. We came back all excited about this journey that
we had decided to take together. We knew that our project study would be incomplete without
studying the lives of the mill workers who have been an integral part of this story. This was a
challenge since it had been long that the mills were shut down, most workers had dispersed and
in such a big city, it was difficult to find the people whom this city had forgotten long back.
After all, it was about humans (State and Business owners) destroying the humans (Labors) in
the name of saving the humans (Labors)

3
 TABLE OF CONTENTS

PREFACE ........................................................................................................................................................ 1

PROLOGUE .................................................................................................................................................... 2

TABLE OF CONTENTS .................................................................................................................................... 4

CHAPTER 1: GENESIS .................................................................................................................................... 5

CHAPTER 2: EXODUS .................................................................................................................................... 9

CHAPTER 3: CITY OF LOST SOULS ............................................................................................................... 13

CHAPTER 4: NO COUNTRY FOR OLD MEN ................................................................................................. 21

CHAPTER 5: FOR WHOM THE BELL TOLLS.................................................................................................. 30

REFERENCES ................................................................................................................................................ 33

APPENDIX ................................................................................................................................................... 34

4
 CHAPTER 1: GENESIS

Grounded in empirical reality.

It was a typical January morning, after a lot of secondary research finally the day had come for
our first visit. The story of the textile mills of Kanpur is all over the web but we wanted to know
the ground realities, the journey of the people, what happened with them. Before narrowing
down to our focus of study it was of utmost importance to hear the facts from the horse's mouth.

We reached Muir mill at around 12.30 PM, A little hesitant to break the ice and kick start the
conversation we decided to observe the scene, We could see two guards at the entry and few
people sitting and chatting 100 meter from them, It looked like they were just laughing over
some trivial stuff, One of the guard saw us and started enquiring, Once we explained him the
purpose of our visit he introduced us to the finance officer sitting inside , who was polite enough
to invite us to his office. He told us that he has been associated with the mill for last 33 years He
explained that once these mills started going into losses the government of India took over them
in 1978-80, the idea was to run them at no profit no loss and give sustainable employment to the
people. The situation however didnt improve the losses kept piling up which forced the
government to negotiate with the World Bank. After a series of discussions, it was concluded
that stopping the production and ultimately closing the mills is the only way out. The problem
however was handling nearly hundred thousand workers who would become unemployed if
government decided to go ahead with the closure. Golden Handshake Scheme (Voluntary
Retirement Scheme) was seen as a middle ground. He told us that when workers saw that they
can get nearly ten years of their salary in one go they got excited and took the VRS. We knew
that the story isnt this simple, already from our secondary research we had an idea that lot of
protests took place when government implemented VR scheme so we enquired about the same to
which he replied

" Ek leher chalti hai, bhed chaal jisse kehte hain, maine khud paise diye apne inn haathon se phir
dekha unhe barbaad hote huye". "Union ne he to chaupat kar diya sab". He added that when he
tried to stop the workers from signing the VRS form they said-

5
"sahab karza bohut ho gaya hai, aurat bimar rehti hai, aap sign kar dijiye". Everyone wanted to
leave, everyone went together.

A man listening to this conversation added that one reason for closing was also that there was a
huge difference between the salaries of the workers and the management which led to lot of
protests, the management was deeply rooted in to corruption, there were dealers involved
everywhere from buying raw materials to selling final goods. kharida to commission, becha to
commission, koyle ki jagah pathar aata tha". We understood that his man is not from the
management side, he has a different story to tell, on enquiring it came up that he used to maintain
the register for the workers. He added that there was a notice put on the wall mentioning that
whosoever wont sign the VRS in 15 days will be fired and wont even receive any
compensation. Union leaders were paid INR 70 lakhs to influence the workers to sign the VRS.

The basic conclusion that we drew from this whole conversation was that there are going to be
many sides of the story, so it is important for us to not get biased by anyones opinion, we also
realized that it will be nearly impossible for us to validate any of the facts buried in history. What
we can believe is only what is visible today so we narrowed down our focus on the As-Is
situations of the workers, the impact of the VRS on them and the opportunity cost of signing the
VRS. As we came outside we saw a store adjacent to Muir mill, we thought it will be a good
idea to talk to someone who was not the part of the system but has observed the happenings
closely. As we moved inside the shop the news of us coming from IIT Kanpur had already
reached the store manager, a man in his late fifties. He told us that in U.P this is the only store. In
2003 there were 64 shops, one central marketing office and 3 divisional offices in varanasi,
ghaziabad and kanpur. Slowly-slowly by 2005 all showrooms were closed. It was only in 2008
that this shop was opened again. He added that there was a time when government would buy
only from these mills and these shops were used to sell off the clothes to the police and the army
but as the private players came along, they formed a nexus with the government and the mill
management. The sales started declining, government started buying from private players and the
stores had to be closed. He further added as the mills closed down a large section of the people
got effected by it, there used to be a big market, lot of shops and when the workers would leave
after their shifts it looked like a big Indian fare, the entire market and shops closed down. We

6
knew from our research that Lal Imli mill is partially operational so we thought that it will be a
good idea to get some real accounts from there in order to improve our understanding of the
entire story. We decided to walk and talk our way to Lal Imli. On reaching Lal Imli we saw that
the mills doors were closed and there was a guard sitting there and many manager level people
were coming and going. So we thought that it will not be a good idea to directly walk inside. We
wanted to meet a worker alone and away from the mill, after waiting for about 45 minutes we
saw a man coming out on a cycle. He looked like he was in his 50s. We stopped and asked him
whether he was a worker, he told us he still is. On enquiring about the ground realities of the mill
he told us Tankhua mile huye kabhi kabhi hume 7-8 mahine ho jate hai, abhi bhi 4 mahine ho
chuke hain, yahan machine running me hain, material nahi aa raha 6-7 saal se, Inki koshish hai ki
Lal Imli ka bhi woi haal kardo jo baaki milon ka kiya hai He told us that when production was
going on than 10,000 people were there, now around 700 are left and everyone is retiring slowly.
He said before when it was working everything was good, now because of management and
government everything has closed unhone dheere dheere zehar diya, ab sab dheere dheere thapp
ho gaya. Everyday workers come, give attendance and leave; there isnt any work for them. We
wanted to understand that being on the receiving end what are his views about the current state
of the mill, he told us that he believes that if the mills were working it would have been great for
them and their future generations. He explained that unlike other mills where the workers were
forced to take VRS. Nothing of that sort happened here, VRS came and few people took it but
majority stayed. The recruitment was frozen and the idea was to close the mill slowly with time
as all the workers reach their retirement age. Every year since then the number of workers have
been reducing and in next few years he believed that the mill will ultimately close down. He told
us that there are lots of workers protesting for 5000 days outside Elgin mill, we thanked him for
the information and left to meet the workers sitting outside Elgin1 mill. On our way to Elgin mill
we saw the textile university which the store owner mentioned during the discussion. We thought
that this university has also seen the ups and downs as the textile mills so we might get some
other perspective if we get to interact with someone in the university who has been associated
with it for long, So we went inside and asked a student where can we find the director, he took us
to the directors office, there we waited for him for around an hour, but still were not able to

7
meet him. Then we got the chance to talk to a faculty who had studied there only and was now
teaching there. He told us that initially the placements were really good, people used to get
placed then and there only but now only 60-70% get placed. Also before they used to take their
students to the mills for training, they used to get hands on training about the things they had
learned in the classes but nowadays there is no place for practical training. He told us that, that
was an altogether different era and things could have been totally different had the mills not
closed. From there we proceeded to meet the workers sitting outside elgin1. As soon as we
reached the spot the first thing we saw was the board with number 5006 written on it, we asked
what it meant, they told us that this is 5006th day of their strike, its been 5006 days since they
have been sitting there. They were a group of 10-15 people, all above the age of 50 playing
cards, as soon as we reached there and told them that we were from IIT and were trying to
understand the story behind textile mill closure; they kept their cards aside and started telling
their side of the story. They told us that they were not given salary for 11 months and were told if
they dont sign the VRS they will be laid off and no salary will be paid. The situation became so
tense that people started suiciding inside the mill. It was only then that the workers were paid
INR 1500 after 1 month. Slowly the patience of the workers ran out and they started signing the
VRS. This is when they told us that people who have been protesting for 5000 days are those
who were temporary workers and were promised an adequate compensation but havent received
anything, they also told us that workers were kept temporary for as long as 10 years before
getting permanent hence most of these people were associated with the mill for 5-10 years when
suddenly one day they were asked to leave. Yeh dharna pichle 5000 dino se isliye chal raha hai
ki agar mill chalu ki jaye to hume naukari di jaaye ya humare bachon ko naukari di jaaye aur
agar nahi chalu karni to muawaja diya jaaye ab hum umid ke sahare bethe ki chal jaaye to age ki
pidi ka bhala ho, par ab lag nahi raha kuch chalne vala hai, paise valon ki duniya hai, garib ki koi
nahi sochta, iss road se sab nikalte hai lekin koi dekhne vala nahi hai ki kya chal raha hai, kya
keh rahe hain ye log They also told us that few people went back to their villages, few became
hawkers, some are begging, half of them are dead. Their strike has ensured that the management
has not been able to sell the machines unlike other mills, they believe that to keep the hopes alive
they have to protect the machines and the mill from being wiped off. Overwhelmed by all the

8
stories we heard that day, we were done for the day. There were so many stories, so much to
hear, so many people whose life was changed because of the closure of the mills. Finally, we had
gotten a gist of what had happened and who all were affected by it. Now all we needed was to
concentrate on the focus we decided from here on.

CHAPTER 2: EXODUS

With the scorching sun overhead, we reached the Muir mill it was not deserted like the day
one. Some people were sitting near the gate and playing cards. We could not see the people we
met the other day. Seeing us coming they stopped their game and asked Looking for anyone?
We stepped forward and told them we are looking for the labor union leader Gopal and described
our project topic. They looked at each other and then one gentleman said- Gopal is not here
today. Why dont you people talk to the officer sir? We told them that we had come earlier and
have already met him here. The gentleman shook his head No. Not him, Officer seats in the
head office near Parmat. You people know Parmat? We nodded. He continued Take an auto
and tell him to head towards Green park stadium. On the back side of the stadium you will find
the sign board of the office. I am calling him and let him know you people are coming else he
might go out somewhere. We were inclined towards meeting the labor leader but understanding
thats not possible now, we nodded. We came out of the Muir mill and hired an auto and within
10 minutes reached the head office. It was as deserted and silent as Muir itself but the gardens
were maintained and there were few cars standing in front of the building. We entered the main
building- officer was expecting us, he has been called by one of the fellows in Muir. He listened
to our project topic and said well, let me tell you something from my experience. We were
about to record his talk but he stopped us No recording please he insisted. So, we started
taking notes as the gentleman started his version. I am working here from mid-80s. I have
heard about the big mills and their conditions since my childhood. There were NTC mills- five of
them and then there were BIC mills, also some private mills like JK, Kailash and Lohia groups.

9
Now you see Kanpur was never a good place to start textile mills. Weather was adverse- no
moisture and we had giant fans rolling all the time to create the moisture artificially, still it was
not a big problem. Till 1960, everything went just fine. Now in sixties and in mid-70s problems
got accumulated. There was labor problem always- in some form or other -but the main problem
was lack of interest in part of the owners. They made a huge profit out of these mills and yet
invested so little in the mills to modernize and keep them up-to-date. All money went out of the
textile mills and never came back. What happened was a massive crisis. These owners simply
refused to carry on the operations and so many peoples jobs were at stake. So, the government
decided to buy them all at a token price. Actually, Government did not acquire these mills- it was
a share transfer. Thus, government became the principle shareholder for 119 mills during this
time. Later, these mills were nationalized one by one. Swadeshi mill was nationalized in 1986
and Laxmi rattan mill was nationalized even later, in 1995. Now, he continued the objective
behind this initiative was very clear- first, to provide job security to these fellow workers and
second, to produce cheap items for domestic use. Initiative was taken to modernize some mills,
there were huge contracts from defense, everything was going fine. Then again, the problem
started. In 1986, Rajiv gandhi came up with a new textile policy. Here the Government made it
mandatory to buy cottons from Cotton Corporation of India. CCI cottons were costly and the
production cost rose. On the other hand, there was no solid handloom policy to market the
produced goods. Demand for cotton products were low and private players were producing
cheaper products. At the same period, defense people started buying from market citing the
reason of low cost. With high capacity mills producing high volume costlier but quality goods,
there was no taker in the market. So, we faced a great crisis. Management decided to reduce
production, wages were stagnant. Labors protested on wages and in 1991, most of the units
stopped production to save the variable costs. Wages were given at the earlier rate but it was too
low to sustain the labors family. So, the protest continued. In late 90s Government again took
an initiative to modernize the mills and start production. But there were no strong will in UP to
take the charge and do something. Private mills like JK started some units, and in some other
parts of the country initiatives were taken. In Mumbai, 5 mills were sold and the amount was
used to open 3 new modernized mills and they eventually started making profit. Kanpur,
however, was lost in the game. Officer stopped his long narrative and paused for a while, then
said- Will power is everything. If you have a strong will, everything is possible. Common men

10
did so many things and here we are talking about government. All could be saved if there was
strong will. Anyway, in late 90s government introduced VRS scheme to let go the workers in
these mills. They introduced double compensation based on Gujrat model. (twice as computed
in Gujrat Model) Under this model, compensation was calculated as follows:

2 x [{No of service years till date x 35 days wage at current rate} + (No. of remaining years x
25 days wage at current rate}]

So, if someone is 55 years old and worked for say, 30 years. Then the compensation will be-
(daily wage Rs. 100)

2 x [{30 x 35 x 100} + (5 x 25 x 100}] = Rs. 2.35 Lakh

If he would continue working in the mill for next 5 years, then he would have got (5x12x3000) =
Rs. 1.8 lakh. (Assuming the wage is unchanged). So, he gets a better compensation and could
live his life on this money. But say, someone is 30 years old and worked for say, 5 years. Then
the compensation will be- (daily wage Rs. 100)

2 x [{5 x 35 x 100} + (30 x 25 x 100}] = Rs. 1.85 Lakh

If he would continue working in the mill for next 30 years, then he would have got (30x12x3000)
= Rs. 10.8 lakh. (Assuming the wage is unchanged).

Leave the mere calculation, what would he do with all his technical skills if all the mills are
closed? So, these workers protested. They were not ready to move out of their jobs. Then the
Management played their role to straighten the workers. VRS was forced in many mills, labor
leaders were bought off and union along with Management kept pressing the workers to take the
VRS and leave. They threatened the workers that if they dont take VRS, then they will be laid-
off without any compensation. There were vested interests in closing these mills forcibly. Land
mafias were looking for lands, Union leaders were busy in their short-term gain and part of
Management was involved in making financial gains out of the whole episode. Then there were
money lenders in these factories- charging a 6-10% monthly interest rates. They wanted their
money back with all interest and forced the workers to take VRS and repay the loan. All these
guys gained at the cost of thousands of workers- labors left factories in hundreds, mill after mill
was shut down and all on a sudden all were gone.

11
He stopped and then looked at his watch kahani to itne hay ki rat guzr jayegi (there are so many
stories to tell). These all people I know some of them, lost all their money in 5-6 months. Then
most of them were out on the street. Some started small business, many became unskilled labor
and rickshaw puller and hawkersjiske pas kheti bari the vo to gaon chala gya (the ones who
had agricultural land in rural sides went back to villages) baki bhik maangne lage (the rest started
begging)

We were sitting silently in the room and as the officer stopped, we realized how silent the whole
area is. Once, in its heydays, this building should have been lively with hundreds of people
walking in and out. Now, there are just these old stories and forgotten memories. We came out
from the building and decided to meet the striking workers at Elgin 2. We thought we can ask
them about some of the facts we had learnt about from the officer, and also if we can get some
idea on how the money was spent after all, we thought it must be a large amount (average 2
lakhs) for the workers who had a daily wage of Rs. 100. Why would they lose all the money in 5-
6 months? (6-month wage was only 18000). We were wrong, terribly wrong.

We reached at Elgin 2- there were only a handful of people sitting- some recognized us
promptly. We told them about some of the things- many nodded in support. Specially all of them
talked about the money lenders and how they forced the workers to pay higher and higher rates
depending upon the crisis. The more trouble you are in, the more is the interest rate. One old
person finally said aaj to sham ho gayi, aap log Sunday ko aa jaiye. Humare leader shami
sahab aate hain har Sunday. Meeting hoti hai 12 se 2 tak. Humare sab sathilog bhi aayenge.
aapse bat ho jayegi (Today its already late. Come on Sunday, our leader Mr. Shami comes
every Sunday and we have a meeting. Our colleagues will also join the meeting, you can talk to
all of them.). We took the contact number of Mr. Shami and started walking towards Parade
chowk looking for an auto. It was 6 in the evening; last rays of sun were illuminating the giant
chimney of Elgin mill and darkness was creeping underneath.

12
 CHAPTER 3: CITY OF LOST SOULS

It was a Sunday, and we all left for the Elgin No. 1 mill from the IITK campus. We reached there
at around 12:30 pm. Muhammad Shami, who has been leading the protest at Elgin No.1 for more
than 5000 days now, was sitting along with his labor friends. There were around 25 laborers
sitting at that site. Md. Shami, whos an old man of around 70 years of age, welcomed us and
made space for all of us to sit along with him. We all sat down with him on the road-side and
started the discussion. We were surrounded by the protesting mill laborers; all of whom were
very attentive and were listening to our conversation with much interest.

Our first question to Md. Shami was about their fight and struggle for so long. Md. Shami
explained, The two mills i.e. Elgin no.1 and Elgin no.2 together constituted as one company
since they shared the same balance sheet. In 2001, when the mills were shut down, the laborers
who were a part of the balance sheet i.e. those who were permanent employees were paid their
share of money through VRS. All other 1800 temporary workers were not given a single penny
except a false promise of taking them back as permanent employees once the mills start running
again.

We promptly asked But arent the temporary workers also an integral part of the company and
hence should be a part of the balance sheet.

Shami replied Yes, they should be and thats what the fight is all about. Moreover, according to
law, a worker who works for a company consistently for 90 days should be converted from a
temporary to a permanent employee. Most of the temporary workers had been working with
these mills for as long as 10-15 years; still, no-one was a permanent employee, as the
management had never let them work consistently for 90 days. Later, they refused to pay the
VRS to these temporary workers. The problem doesnt end here. In the Kanpur Textile, the
government had allocated VRS money for temporary workers, and they also got the money. But

13
in case of Elgin mills, the management did receive money from the government but it never
reached the so called temporary laborers.

We were shocked and asked him again for a re-assurance Are you sure the management had
received money for the Elgin temporary workers?

Yes, very well said Md. Shami.

We asked them how they have been fighting with the government and management for their
rights for so long in spite of no external help from anyone in any form.

Shami said, The laborers involved in the protest contribute any little money that they can, and
we persevere to fight for their rights. He told us that out of the 1800 temporary workers, only 169
are protesting as of now. All others have either given up hope or are no more alive.

Md. Shami continued, This road (where they have been protesting) once used to be full of
bazaar and people. Every political party during elections used to come first to the mill workers,
but now, no-one cares. Kanpur would have been a different place altogether if these mills would
have been running till date.

We immediately questioned how do you think the government could have saved these mills?

Shami answered Modernization was the key to sustainability. The mills should have been
improved by implementing latest technology.

One of us then raised the question about the KK Pandey Award, which had brought new textile
policies in 1989, and recommended new investment in the mills with severe cut in the labor
strength. The labor had protested against it by blocking the railway tracks. It was the longest
protest of its kind and lasted for about 110 hours. The government was then forced to withdraw
the K.K. Pandey Award.

Shami immediately said, Yes, the workers, knowingly or unknowingly, had cut off their nose to
spite their faces. The workers never understood the meaning of automation. All they knew was
that KK Pandey Award will take away many of their jobs and also, each one of them will be
operating 10 machines instead of one. They were told that they will grow old soon as theyll
have to work 10 times as much as they do now. This threatened the workers and they undeterred
stood by this labor movement, demanding withdrawal of the KK Pandey Award. In my

14
perspective, our very own union leadership and management were responsible for misguiding the
labor. False meaning of automation was conveyed to the labor to provoke the protests. Both
union leaders and management were together in this conspiracy against the workers with their
own individual motives.

After the failure of implementation of the KK Pandey Award, Shami claims that the government
got tensed with the then labor situation and conspired to divide the united textile mills labor.
With the same motive, they divided the fully independent textile mills into separate functional
units, so that, the labor cannot anymore remain united.

The management had a different perspective and said that the division was carried on only to
improve the efficiency of the mills.

Our conversation with Shami sahib continued, The management told us that the labor was not
cooperative enough and had little intentions to work. It was not possible for the management or
the government to run the mills in such a chaos. What is your say?

He immediately answered, Management ka kya hi kehna. Aaj bhi free mein tankhwah le rhe
hain. Inka to ab ye haal hai ki welfare afsar kaam kar rhe hain, aur majdoor hain nhn; finance
manager hain par tankhwah baatne ke liye labor nahin hai" (The management is being paid for
sitting idle. There are welfare association managers, but there are no laborers. There are finance
managers but no laborers to be paid any salary.)

Shami agreed that there have been a large number of strikes and protests which created
disturbance, but questioned who really was responsible for the same.

Shami quoted Beta, majdoor matlab majboor; kuch bhi banna par majdoor mat banna.
Manegement ka hisaab to aisa hai ki Majdoor ko itna do ki mare nhn, par mota bhi naa ho.
(Son, a laborer is always helpless. Become anything, but dare not a laborer. The management
used to give enough money to the labor that theyll not die, but not enough, that they can eat
properly.)

We then further asked him, Weve heard that the labor was forced to accept VRS. Is that true?

Shami answered, Yes, in a way, the labor was forced to take up VRS. They were told by the
management and the union leaders that if they didnt accept VRS, theyll not get a single penny

15
and will anyway lose their jobs; but if they accept VRS, theyll get twice the amount of money
they are liable to.

Ab aap hi btaaiye, agar apne hi leader bolenge ki VRS lelo, lakhpati ban jaaoge, nahin to
sadak pe aa jaaoge aur kuch haath nahin aaega, to vo majdoor jisne aaj tak ek lakh rupay ek
saath dekha bhi naa ho, kya karega? (You tell me, when your leaders will tell you that accept
VRS, youll become rich, otherwise, youll lose everything, then what will a laborer, who has
never seen as much money together will do?)

He continued, These people (management) said that if you put Rs.1 lakh in the Post office,
youll get Rs.800 per month as interest. So, many laborers had put their money in the post
offices, but soon, the interest rates declined and all that the labor received every month was a
mere Rs.600 for a lakh. It was not possible for them to survive with this money and hence they
started using their capital and soon, they had no money left in hand.

Aaj kuch worker rikshaw chala rhe hain, kuch bheek maang rhe hain, kuch fal sabji bechkr apna
pet bhar rhe hain. Zindagi bahut mushkil se kati hai (Today, some of them are pulling rikshaws,
or are begging or some have been selling fruits and vegetables. Life has been very difficult.)

We nodded with sympathy, and thanked Md. Shami for his time. As we stood up, a few laborers
sitting around us stood up along with us and with crossed hands, one of them said, Bhaiya ji,
mill chaalu karwa dijie bas. Hamari to umar nikal gai par hamaare bachhon ko kaam mil
jaaega. (Brother, please somehow get these mills operational. We have managed somehow, but
at least our children will get jobs.)

We all felt helpless. Before taking a leave, we had a word with different workers and asked them
about how they had managed their lives post closure of mills. The responses were more or less
similar, and equally disturbing.

From there, we got to know about the two labor colonies, one, called Makarawat Ganj, where
Lal Imli laborers have their houses; the other, called Ellen Ganj, where mostly, leather factory
workers (who more or less have a similar story as the textile workers) live.

16
We all had lunch while discussing about how we should proceed and what information should
we precisely try to extract from conversation with these workers currently residing in these labor
colonies.

Further, we took an auto-rickshaw and reached the Makarawat Ganj labor colony. There, we met
two guards at the gate of the colony, along with a worker currently enrolled with Lal Imli. We
started asking them about how the mills were closed down and what the consequences of the
same have been. We talked for about half an hour and gathered the same points and were told
similar stories which we had heard before from other sources.

Now, it was time to meet a few individuals and have a microscopic view of their lives post VRS
and post closure of the mills.

We first spoke to the very guy who was sitting at the gate. His name was Satendra and was
around 40 years old. He receives a salary of around Rs.14000 from Lal Imli but had no work to
do. Every morning, he goes there, signs the attendance register and comes back after spending a
few hours there with his fellow workers.

He said, Lal Imli apne time ki maani hui mill hai. Bade bade log, neta log, abhineta log,
cricketer, sabhi yahan se kapda khareedne aaya karte the. Ye woolen mein ek brand maanaa
jaata tha. Aaj bhi agar aap puraane logon se baat kare, to unhe Lal Imli ka pata hoga.(Lal imli
was a renowned mill in our time. Many celebrities used to come to purchase woolen stuff from
here. It was considered a brand. Even today, if you talk to people of our age, Im sure they would
know about Lal Imli.)

While we responded by nodding our head, he continued, Aaj bhi bahut badi badi nai machine
Lal Imli mein packed padi hain.. Pata nahin unhe chalaate kyun nahin hain. Yadi chala de to
khud bhi behtar kamaaaenge aur hum logan ko baithe baithe paisa nhn dena padega aur shayad
hamaari zindagi bhi pehle se behtar ho jaae. (Even today, there are many newly purchased
machines kept in the premises of Lal Imli. I dont understand why they dont use them. If they
start using them, Im sure theyll have good revenues and theyll not have to pay us for sitting
idle. Also, our lives may as well improve.)

Is baar bhi 7 maheene beet gae hain aur tankhwah nahin mili hai. Aap hi btaaiye, kaise
guzaara hoga?Hamara bachhe hain jo school jaate hain, roti bhi to khaani hai. Hamaare paas

17
kar lene ke atirikt koi chaara nhn bachta. Aur jab 8-9 maheene baad mill se paisa aaega to
aadhe se zyada to sood byaaj mein hi chala jaaega.(Even this time, it has been more than 7
months and we have not received any money. You tell us, how should we manage? We have
kids, who go to school, we have to eat food too. We are not left with an option other than taking
a loan. When 8-9 months later, we do receive money from the mills, more than half of it goes to
the money lenders.)

When we asked Satendra about the interest charged on their loans, he said it may vary between
10% and 20% per month.

In spite of being fairly young, at the age of 40, Satendra said, Ab apni zindagi se to koi ummeed
nahin hai humein. Khaali baith baith ke bekaar aur nikamme ho gae hain. Naa kaam karne ki
aadat rahi, naa kaam hove hai humse. Ab to bas bachhe padh likh jaaen aur achhi naukri karne
lage, aisi hi apeksha hai humein. (Now, I do not have any hope as far as my life is concerned.
While sitting idle all the time, we have become useless and worthless. Neither the habit of
working has sustained, nor do I think Ill be able to work. Now, Im relying only on my kids, that
theyll work hard and find good jobs.)

Next, Satendra took us to Bansi Lal Mishras home, in Makrawat Ganj itself. Bansi Lal Mishra ji
and his wife worked at the Lal Imli mill. Bansi ji had accepted VRS while he was working with
Lal Imli in 2002. His wife, although, continued to work at Lal Imli and retired only2-3 years
back. They own a bike, TV and even a computer. They have two sons; one has been working
with an MNC in Noida and the other has been studying in Kanpur.)

I accepted VRS in 2002. I have two children and they were too young at that time. We needed
money for my mothers medical treatment. I had no other source of funding, said Bansi Lal.

We then asked him, How did you manage post retirement?

Bansi Lal told us, Under the VRS Employee Training Program, I was trained to repair the
mobile phones. I did go there and try my hand at it. It was difficult for me to learn while I was
not so young, but still, I tried. Post training, I thought of opening a small business to repair
gadgets but couldnt arrange the capital required. I also thought of working with some private
business owner but couldnt get a satisfactory job. The young people have better learning
abilities and I wasnt able to compete with them.

18
Then after a thoughtful gap, Bansi Lal said, Itna aasaan hai nahin jitna in logon ne socha tha ki
hoga. Mujhe nahin lagta kisi ko bhi is scheme se faaeda hua hoga. Zyadatar log berozgaar hi
reh gae. (It was not as easy as the government thought it would be. I dont think anyone has
really benefitted from this scheme (VRS Employee Training Scheme). Most of us have been
unemployed post retirement.)

While we were still talking, Bansi Lals wife came with four glasses of water for all of us and
interrupted, Agar hamaari naukri nahin rehti Lal Imli mein to hamaara parivaar bhi baakiyon
ki tarah barbaad ho jaata. Bachhon ki padhai ka kharcha, ghar ke roz ke kharche, sab ke liye
paisa kahan se aataa? (If I would not have been working with Lal Imli, then our family, just
like most of the other families would have failed to manage this crisis (post my husbands
retirement, Where would have the money for the school fee or the regular day to day expenses
come from?)

We thanked them and moved out of the Makrawat Ganj colony. Then, we started walking
towards Ellen Ganj colony, where primarily the leather factory workers reside. These workers
have a similar story of VRS, unemployment and struggle.

VRS, as a scheme has not been efficient as far as the labor is concerned, whether they are the
textile mill workers or the leather factory workers.

There was a dhaba near the entrance gate. We all went there and started explaining about our
project and objectives. An old man having tea started explaining, Unlike the textile workers, we
received a single compensation, which varied between 2 and 3 lakhs. The compensation was too
less as our income was less. Our income was less as we received a hike only once while the
salary revision happened in 1985.

We asked, What did you do with the money?

He answered, Most people spent the money in medical treatment, constructing their house or
marrying their children. Some even misused the money in gambling, alcohol and buying bikes or
televisions.

We then questioned him about the VRS Employee Training Program, to which he said, Yes,
there was a training program in which people were trained for different occupations such as

19
driving, cycle repairing, mobile repairing, incense stick manufacturing etc., but most people
didnt really benefit from it. There were dalals, who would give you Rs.400 and keep the rest
Rs.800 out of the allotted Rs.1200/-, and people actually didnt learn anything.

Another man, called Chedi chacha, sitting quietly besides us interrupted and said, Its not that
people didnt benefit from the scheme. Some people did learn and are reasonably successful
today. Others, who had no intentions of learning, were the ones who got involved with the
dalals. I, myself learnt how to drive, and also got a license made for myself through the scheme.
Although, my eyes are now weak and I couldnt continue with the occupation.

Chhedi chacha added, I would have been more successful if I could have bought my own car.
The government promised us loans for starting our businesses post the training sessions, but all
in vain.

Only if the factories and mills would have been running, life in Kanpur would have been much
better. There would have been smiling and prosperous faces all around instead of poverty and
gloominess.

20
 CHAPTER 4: NO COUNTRY FOR OLD MEN

Already deep into the project, we knew that the understanding that we have got over the past few
months can never be complete unless we interact with more people who have been on the
receiving side of this sad episode. In pursuit of meeting people whose stories have evolved in
different direction post the closure of mills, we decided to visit some of these mills again and
interact with shop owners and residents who looked old enough to have been the eye witness of
this mass tragedy.

As they say, where there is a will there is a way, we reached Muir mill for the fourth time on a
sunny morning. It all started from here and we thought that probably we might get something
that can lead us towards the beginning of the conclusion. While at the gate of the mill, we
noticed a tea shop just next to the mill, the guy making the tea was an old man, probably in his
seventies. We asked him how long has he been here making tea. He replied he has been here for
many-many years. He was there when the mill was at its peak and this is what we so desperately
wanted to hear, the arrow shot in the air has hit the target, we asked him if he could introduce us
to someone who used to work here, Yes, he replied in his confident tone.

Mulla ji hiaaya aayia (Mulla ji, please come here), the tea shop owner told us that Mulla ji
used to work in Lal Imli, we wanted to meet someone who used to work at Muir mill but this
was no less than our expectation. A man in his 70s with long beard and dirty clothes came and
stood besides us.

He told us that he was forced to take the VRS but he didnt take it, kaagaz sign karvana chahte
the hum Dilli chale gaye, Nai kiye sign, (They wanted me to sign the VRS but I went to the
higher authorities in Delhi, I didnt sign it.) He told us that how when Muir, Elgin and other mills
were getting closed even the Lal Imli mills employers were asked to leave and forced to sign the
VRS. Salary wahan bhi late dene lage ki addmi uub ke VRS lagade (He told us that the
management started giving salary very late so that the labour leaves in frustration.) According to
him around 60-100 people did sign the VRS. He was suspended 26 times and dismissed 3 times

21
in his struggle to continue working. 7 times he was jailed, the average stay of which exceeded 15
days. He got INR 3.5 lakhs post retirement fund which he used in his daughters and sons
marriage and the remaining for repairing his old house. He retired at a salary of ten thousand and
while his legal pension should be nearly five thousand, He receives 1500 every month; He has
now lost the will to fight and accepts whatever he is getting.

A comparative analysis tells us that not taking the VRS and fighting for it worked out well for
Mulla ji, People of his age who took VRS got around 2.5 lakhs then and are receiving a pension
of 1000 rupees, they also lost 8-10 years of salary which they would have got if things wouldnt
have turned out the way they did.

It did take a lot of courage and resilience for him to keep working but he is the clear example of
someone who didnt get caught up in the fear and stood for his rights. His son could study well
since he was earning a decent amount before his retirement and now he works for a goods
company and is living a respectful life. The move by Mulla ji paid off not only for him but for
his entire family.

Mulla ji, unlike others whom we met, sounded more confident and positive, sticking to his job
made him a proud individual, his perspective towards life was hopeful while those who were
forced to leave and actually left sounded negative since the hardships they had seen post VRS
have made them weak.

We were still searching for someone who has worked with a mill that has closed down, In the
hope of finding someone we visited the office of British India Corporation near Lal Imli, as we
entered the gate we saw a guy cutting the worn-out branches of a tree, the man came down and
enquired about us, in our discussion we came to know that he used to be a weaver at Muir mill
and was forced to leave after taking the VRS.

Ram Lal, a man in his mid-sixties, started with saying jiska jawani mai kamar tod diya jaye wo
kya karega(If you take someones job while hes young and has maximum burden on his
shoulders, then how will he manage). He sounded disheartened and shared very personal stuff
with us which goes beyond the scope of this project. He was 47 when he was forced to take the
VRS. He got a mere 2.5 lakhs as his VRS compensation, Ruka hota to itaa to vetan hi paa jata
(If I would have stayed there, I would have got this much as a salary only). He lost his wife when

22
he was 28, he has 3 kids whom he couldnt educate since he lost his job, one of them lives with
him and is handicapped while others live in metros and are labors. He regretted the fact that he
couldnt provide his sons a platform in life that they deserved. In his story came the story of his
elder brother who used to be poor, Ram Lal was the one who used to support him but as the mills
closed down and he lost his job, his brother parted ways from him. Today, his brother is rich,
living a decent life but doesnt talk to him at all. The opportunity cost of losing the job in his
prime has costed him not just money but also his self-respect, his relations and has made him
guilty for life. Hum log sankat ke jhujhe hue hain (We have seen the struggles). He spent his
VRS money, INR 2.5 lakh in repairing his house here and in his village Gorakhpur.

Tears fell from his eyes, when he told us that no one respects him now, everyone treats him like
he is a failure. He didnt know that such would be the fate of his life. He spent 10 years post
VRS doing nothing. He couldnt get the job as he was 47 and he knew nothing else but weaving.
Only few years back he started working as a gardener at BIC. He works for 12 hours a day in the
sun and gets Rs.200 per day, no paid leave even if hes sick; if he misses work even because of
some emergency, he loses INR 200. He told us that after his forced retirement he learned to
make candles as a part of the skill development program by the government and he became very
good at it but he couldnt find the job and he had no extra money to start a business of his own so
soon he lost the skill and training proved to be of not much help, He pointed that such was the
scenario with almost everyone. People learned driving, mobile repairing but were not able to use
the learning for earning their livelihood.

The story of Ram Lal is the story of majority of labors who lost their job, these people were
rational and didnt waste their money in wrong habits rather did their best to make things work
out but if ones skills become useless in his late forties, he is forced to become useless. The
emotional cost of losing the respect and hope is something that no compensation can ever match.
Only these people will know how it feels to become a zero from hero by the virtue of signing just
one paper.

Ram Lal told us that if we want to meet more people who used to work at Victoria mill than we
must pay a visit to FM colony. It was already 3.30 PM and sun was at its peak but we decided to
walk 1 KM and try our luck at FM Colony.

23
As we entered the colony, we saw an old shop, by now we knew that old shops and shopkeepers
are our guide in this journey, we started enquiring about our subject matter and he referred us to
a guy who was reading the newspaper. The man looked in a decent state, he had dyed his hairs
black and prima facie looked very different from all our accounts so far. He told us that while he
was a labor in the mill, he used to work as part time electrician and the day he lost his job at
Victoria mill post forced VRS, he got a permanent job in DPS as an electrician, jaise roj nikalte
the kaam pe, naukri jaane ke baad agle din waise hi nikle subha, bas jagah aur kaam badla tha
aur sab waisa hi chalta raha ( the way I used to leave every morning , I left the same way the
next day after losing my job, Only the place and the work changed, rest all remained the same).
He has 2 sons, both of them studied and graduated couple of years back, one of them works in
Delhi while the other one who was standing with us is working in Kanpur. He told us that he was
very lucky since he knew some work other than weaving, which helped him find a job post
closure of mills. Most of his friends either went back to their villages or were left with no work
to do, some of them started pulling rickshaws and some even started begging.

His present income is INR 16000 while his son earns well too, he took us to his home and it
looked in a good state with fridge, TV, Cable etc., all were there and his son used a latest smart
phone. His son told us that as a family they never realized that anything wrong has happened to
them, the money he got as VRS compensation was 2.5 lakhs and he invested most of it in post
office after purchasing a bike.

The story of Kishan Pandey, the electrician, opened new gates of analysis for us, we realized that
the biggest problem with closure of mills is that people completely lost out on their core skills
and if someone has a land or some other skill to bank upon in tough times than these situations
can be faced and fought well.

Another important take away from his story is the opportunity cost that he didnt have to pay. He
never lost the respect he had in his family and hence his son and wife treat him well. He also
feels confident and doesnt have too many complaints from life. We could sense that he felt sad
for his then colleagues and has a lot of anger on the system for whatever happened to majority of
people who were on the same boat as him. Hum to wahi rahe beta, Par Kanpur ab wo nahin
raha (We are same but Kanpur has changed a lot), he said with a sad voice. We asked him if he

24
can introduce us to more people who lost their jobs and he didnt disappoint us. He showed us an
old looking small flat on the first floor and said waha chale jaiye (Go there).

We reached near the flat, The state of the house looked bad , we gathered courage and knocked
the door, A young lady opened the door, we told her what we were looking for , she was the
daughter in law of Radhe Shyam ji, an old man who couldnt walk properly. We helped him in
walking toward the chair and helped him settle down. We all thought that we should not ask
questions to him. He looked very weak and old but he started himself, Kahiye kya jaanna
chahte hain, Baith jaiye aap log fir puchiye (Tell me what all you want to know, please settle
down and then ask.)

In the 45 minutes long discussion with Radhe Shyam Ji and his daughter in-law we learned that
he took VRS in 1993 from Victoria mill when he was 56 years old. The VRS as have been in all
other cases was forced, people were not paid salaries for months and have to finally accept the
VRS. After taking the VRS amount of 1.25 lakh rupees, he moved back to his home town Mahu
near Azamgarh. His son who was a temporary worker back then in Victoria mill was also forced
to take VRS at the same time. Radhe Shyam ji told us that he was old and hence didnt try to
look for any job, he repaired his home in Mahu and spent some amount in his sons marriage.
We were curious to know how his sons life has been since he took the VRS. We thought he was
young back then so must have managed something. His wife told us that for 3 years, he couldnt
find a single job; there were many people who got unemployed and there was a huge demand
supply gap. After 3 years, he finally took a job as security guard since he had 4 sons and a wife
to take care of. Since he was a temporary worker and was working for only 4 years when he took
the VRS he got negligible amount as compensation. It was so less that his wife ducked the
question and didnt tell us what it was.

Radhe Shyam ji told us that he used to get INR 500 as pension since 1995 and only 2 years back
it has been raised to Rs.1000, Bekar hogaya main bhi aur mera beta bhi ( Me and my son are
of no use now), he said in soft breaking voice. He further talked about how they have lost the
hope and the dreams. He was old and has lived his life, and somehow managed but was really
concerned about his sons life, which got completely ruined. The whole day he works in
scotching heat of the sun but the salary h gets is not upto mark.

25
He told us that many of his known ones died within 2-3 years of VRS, some died of shame and
guilt that they had to carry while many turned into alcoholics and lost their lives. Those who
remain there are going through a life that they had never thought of theyll have to live.

Radhe Shyams story clearly brings out gaps in the system, it tells us that how in these scenarios
of closures, the entire family has to suffer the pain and agony doesnt last soon. For looking at
the opportunity cost we looked at a few cases that were at par with Radhe Shyams son in his
career and age but didnt lose their jobs. Most of these cases are from Bhadurgarh (Delhi),
laborers working in pencil factory. The life of these people is far better in terms of economics
and satisfaction. Job security has ensured that these people are able to educate their children
well, live a decent life and most importantly are hopeful about their future.

Radhe Shyam Ji did nothing wrong to deserve what he got from the system. He cant hit back on
the system, neither has he had the voice but he, his daughter in law, his son and the people living
next door all have lost confidence in the state and its mechanism. We believe there cant be a
bigger hit on the state than its own people losing entire trust on it.

We came back to our rooms and listened to the recordings of the people we met that day. One
thing that came out was that Radhe Shyam ji talked about someone he knew who has become a
beggar. We thought this might be exaggerated but since he told us the name of the temple where
he might be found, we decided to make a visit, While going there, we stopped at Victoria mill.
There were two guards with whom we sat for next 1.5 hours, they were the eye witness of what
happened at the closure of the mill and had lot of things to share. The story was old, the one
which we have been hearing since the beginning of the project but the emotions were high. One
of them started crying, when he told us that when the mills were closing, he was not sure if he
will also have to take the VRS. There was a lot of confusion on it; one of his brother who used to
be very close to him stopped talking to him since he thought that if he (guard) loses the job then
he would become dependent on him and only because of this fear, he stopped picking his calls
and it has been nearly 15 years and they have not talked. The reason why we brought this up here
is because, this is also one big cost that people who lost their jobs had to pay, People who were
close to these mill workers, their friends, family members most of them parted ways from them
once they became dependent. No system can ever build a mechanism that can take care of these
personal loses that come along when such abrupt closure takes place. Sitting with the two guards

26
was an old man who was quiet all through out these discussions, one of us curiously enquired
about him and that is when we were told that he was also an employee at Victoria mill and now
he sells newspaper on his cycle every day. This man was so old and thin that it was hard to
believe that he can even paddle his cycle, the guards told us that he wakes up at 3 AM and visits
nearly 700 houses everyday selling the newspaper.

Mr. Harikishan Lal, the newspaper vendor told us that the production in the mill stopped in 1992,
he had lot of time than to do other things and because of his large family that he had to support
he started selling newspaper. This was supposed to be an extra earning opportunity for him but
he never thought that in few years this is going to become his prime source of earning. Mai beta
roj ka 300 rupaye kamata hu (I earn INR 300 everyday), He told us that he cycles 5-7 hours
every day. He left in 2003, when his salary was INR 2900 per month, As with others he was
forced to sign the VRS, He told us that one day the leaders came and shouted, Dhura Band
Dhura Band (Shut the machines) ; this was the code used there to tell the workers that no more
production now, Little did they knew that this was the final time they will shut down the
machines. Mr. Lal got INR 3 lakhs as VRS compensation, He used of this money in buying a
house, he has been to jail 5 times because he has failed to pay the monthly instalment. He sits
every day at the Victoria mill because he says he doesnt want to go home and consume one
mans lunch, he has tea and 2 biscuits as his lunch every day. Is duniya mein majduron ka koi
nai hai beta (There is no-one who belongs to the is how he ended the discussion with us.

This story is a little different from the story of the electrician but it has a big similarity, The skills
werent completely wiped off as he lost his job since he was selling newspaper for 10 years by
then, All said and done the system has to take the blame for the struggle that this old man is
going through every day. The loss is of the system only, so many people like him have lost
complete trust on the system, their future generations too doesnt trust this system, You cant
blame the future generations even for turning up to violence and non-constitutional means seeing
their fathers and fore fathers completely thrashed and then ignored by the system.

As we moved out of the Victoria mill we saw a tea stall, standing on the tea stall was an old man,
suddenly from behind we heard the guard of Victoria mill saying yeh rickshaw wala bhi yahin
se hai (This rickshaw puller is also from Victoria mill only) We asked him when did he took
the VRS? He couldnt even remember; how much did he get as compensation? He couldnt

27
recall. He might have not said anything but in an age in which one cant even walk properly, this
old man was pulling the rickshaw. The guard and the tea shop owner told us that he starts at 6
AM in the morning and paddles till 6 PM in the evening; He started doing it after signing the
VRS.

Aaiye aapko ek aur purane worker se milvaein, (Come let me introduce you to another old
worker) the guard said coming from behind, he took us to a man selling pans and cigarettes. This
man looked in his late fifties and he had only one hand.

We asked him when and how he started selling Cigarettes and pan. He told us that he began after
he signed the VRS. His brother supported him and with the money he got from VRS he started
this shop, life kabhie kabhie intehan leti hai beta (Life sometimes tests you) , he said when
we asked about his present situation, He told us that he makes Rs.100-150 every day and he
works for nearly 12 hours, Lal Imli workers take home a salary of ten thousand today, if he
would have not lost his job think about the kind of money he would have been making today, He
had the support of his brother who works in bank and hence he has a roof of his own, He told us
that even though his brother has supported him a lot but in any festivals or family gatherings no
one treats him with respect since he is considered as a failure and even his own son treats his
brother better than he treats him. In his weak voice, he told us that he was doing really well in
my life before the mills closed down but the life after mills has been horrifying. Personal and
professional disturbances have changed the way he perceives life, some of his quotes like Kya
hai jeeange thoda aur fir mar jaenge (I will live for some time and then die) etc. Clearly
indicates that he has lost all the hope.

The thing to take away from this is not what he has today but what someone in his shoes with no
supportive elder brother would have, a man with lost hope and handicapped with no money,
what will he do? We know now how one turns to begging. The fact that we interacted with only
a drop in the ocean doesnt stop us from visualizing the ocean completely, the question again
stands which system has the power and the ability to be beneficial for this heterogeneity that
exist in humans, The same instance of mills getting closed down affected different people
differently based on their state at that time and yet as a system we have one solution for the
entire mass, We as a group are convinced that one key cant and will never open every lock.

28
It was already 5.30 PM in the evening and we still have not reached the temple to find the beggar
that we came looking for, we decided that now our next stop is going to be the Anandeshwar
Mandir, Parmat. When we reached there the scene was very disturbing, there were lot of beggars
sitting in a row leading up to the temple, whom to talk and how to find someone who has worked
in the mill before was a challenge in itself. We asked 2-3 beggars about their background but had
no luck, soon we saw a very old man, wearing a torn shirt and dirty trouser, and he had an old
bag next to him. It looked like we have found the guy, We went up to him , seeing us he started
begging, He was closing and opening his eyes, and behaving as if cant see, I have always
thought that these are the gestures to fool the people and gain sympathy but this time we needed
him more then he needed us, We sat down with him and said baba aap mai se koi pehle
kapdon ki mill mai kaam karta tha kya ( Baba anyone of you used to work for textile mills),
Hum hae karat the ( I used to ), he replied.

We asked him about his pension, he said Beta pension 1970 ke baad jinka dakhila hua unhe
milti hai, humari koi pension nai , Sarkaar ke liye hum hai hi nahin, kuch saal pehle aankh mai
motiyaa bind hogaya, 2 baar camp laga waha gaye par wo pehchan patr maangte hai , pehchan
patr humne kabhi banvaya nai to operation bhi nai hopaya, ek sahib aate the har somvaar ko , 10
rupaye dete the, wo bole mai karvadunga tera operation, humein aas ban gayi par fir wo bhi aana
chod diye, ab hum soch liye hai ki zindagi aisei kategi ( Beta people who were admitted after
1970 only got pension, for government we dont exist. Few years back I got cataract and when I
went to a camp they asked for ID proof, that I didnt have so I was not able to get operation
done. One sahib used to come every Monday, he used to give 10Rs., he said I will get your
operation done. I got my hopes high but then he also stopped coming. Now I have accepted this
how my life is).

Tears rolled down from his eyes, most of us were crying by now, we sat with him for few
minutes and discussed about his good days, the question is what did he do wrong? Very little
may be but see where the system has put him, can it get worse than this? What if this VRS was
not in picture? He had 9 years of service left, if he would have served his complete tenure, he
would have made more money, he would have landed with much more retirement money, and
his son would have completed his studies. Whatever the state did for these labors can never
justify the story of this man. In all the cost benefit analysis that system does while explaining its

29
efforts post the closure of the mills and the VR scheme no where we are sure these kinds of cost
paid by not just the mill workers but also by their entire family and future generations come in
the picture. These costs can never be quantified, compare it with the Hiroshima Nagasaki attack
where the generations are still suffering and then we might be able to create an appropriate
parallel for what people like these are going through.

30
 CHAPTER 5: FOR WHOM THE BELL TOLLS

As we traversed a long path from the first day to the end of our project, we went through a series
of understanding from time to time. The journey was, in all sense, more of a discovery. We all
had some intuitions and perceptions some from the class, some from the secondary research we
did before and during the project. However, through this journey we learned things beyond those
figures and reports, beyond whats covered in seminars and academic papers. It was an
experience more of a feeling than facts, more of involvement than information. The closure of
textile mills in Kanpur had a cost- more of a social and psychological, rather than just economic.
It is true that the administration came up with some form of calculation based on their own
mechanism and applied the formula to figure out the exact compensation to be given for each
individual. If you simply look at those figures and compare with the daily wage, as we primarily
did, it looks a hefty figure to live on. Even for the sake of argument, if we argue (after seeing
many of the workers lost all money in very short period of time) that the compensation was not
apt, even then, it does not make the picture clear. What we missed out here was a very basic
question how much compensation was just enough? Putting it in other way- Can we actually
figure out the exact amount?

What we think after doing all our study is that probably it is not so simple a question. When
government came up with their model of double compensation- it was a quantitative
measurement based on some expert judgement. When that black box produced an outcome,
administration made the offer more lucrative by simply doubling the amount (sometimes triple).
What was the basic philosophy behind these so called doubled and tripled amount? Was it based
on some welfare logic? Was it pro-labor and based on genuine good intention? Our
understanding is mostly not. It was more of a tool to get rid of the labors, to keep the process
smooth and avoid any retaliation. What is more fascinating here is the role of the unions and
labor leaders- most of them joined the Management to force the workers to leave and aided the
closure of the mills. In this process, all the parties rushed to make most out of the situation with
their own vested interests. Only one part was left behind- workers. Unfortunately, they were the
highest in number.

31
This whole episode had a huge cost involved. If we calculate the total economic loss involved
that obviously makes a significant number. Thousands of workers were out of job overnight,
thousands of others who were directly or indirectly dependent on the mills also lost their
livelihood. As a whole, the city suffered a huge loss, massive unemployment and degradation in
economic conditions. But what was probably more long-lasting and less talked about cost is the
social cost. People after losing job in mid-life, faced a sudden deep crisis- some could cope with
the troubles through hard struggle, many could not. Sometimes, people had no money for food
and could not afford a decent healthcare facility for their spouse and children. With poverty came
the social isolation. They lost their dignity and respect; relatives and family members started
ignoring them- creating a pressing psychological impact. In many families, teenage sons dropped
out of the school and was forced to look for some employment to support the family. In
summary, where did we count all these costs? How much is the value of happiness, better future,
social recognition and dignified living standards? None knows.

When the common workers were facing the crisis, only a few benefited. The cost was not a one-
time payment, it happened over the years, in different forms.

A birds eye view of the entire episode indicates that the state did its best; it gave them
compensation which was equivalent to sometime ten years of their service and to add to this state
arranged for skill development programs so that these people can have a new source of
livelihood but the ground reality is completely different. A monitory compensation of three lakhs
wasnt enough for starting a new business, the unemployment was so massive that private
players gained bargaining power and workers were exploited to work at salaries that were not
even good enough to feed their families two times meal. It is impossible for a person who has
worked for 20 years in a government job to gather courage to take risk like a businessman and
invest all the money he has got in starting out something new, early fifties and late forties is not
the ideal age to get a new job and hence very few workers were able to get a job. This clearly
brings out that the state mechanism of compensating every loss with mere money isnt a good
enough solution. Our understanding indicates that the state and system lacked sympathy and
empathy while creating alternate plans for the unfortunate workers, the idea was to just close the
chapter and no one actually cared about how the new chapter for these workers will look like.
There is demand in the market, the workers of Lal Imli mill are ready to work but they are paid

32
salaries for doing nothing, who is at the loss? The biggest loss is not of the public money but of
the skilled labor forced to do nothing. Most of these people have become alcoholic and
unproductive, there is tension in their family as a result of this, The visit to the homes of some of
these families brings out the pain that this system paying ten thousand rupees per month for
doing nothing will never understand.

This has been a painful affair for us, ground reality is horrifying. The biggest regret is we have
nothing to give back to these people who have whole heartedly shared their stories with us just
like the system has nothing to compensate for the situation it has put thousands of workers and
their families.

33
 REFERENCES

1. Voluntary Retirement Scheme (VRS). (n.d.). DPE/Guidelines/VIII/1 Retrieved from

http://dpe.gov.in/sites/default/files/VOLUNTARY%20RETIREMENT%20SCHEME%20%28VRS%
29-Chapter-8.pdf
2. Says, A. K. (2014, August 18). 7th Pay Commission News. Retrieved April 21, 2017, from
https://www.cgstaffnews.in/voluntary-retirement-scheme-in-central-public-sector-
enterprises/
3. Golden handshake. (2017, March 12). Retrieved April 21, 2017, from
https://en.wikipedia.org/wiki/Golden_handshake
4. Trade Unions In The Textile Industry (Ch-6, P 118-149)
http://shodhganga.inflibnet.ac.in/bitstream/10603/52850/11/11_chapter%206.pdf
5. Textiles Undertakings (Taking over of Management) Act, 1983
http://texmin.nic.in/sites/default/files/act_stutm_0.pdf
6. Laxmi Rattan & Atherton West Cotton Mills (Taking over of Management) Act,1976
http://texmin.nic.in/sites/default/files/act_lrawcm.pdf

7. Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act,
1986. http://texmin.nic.in/sites/default/files/act_scm_0.pdf
8. Labour and Closure of a Mill: (2007, May 26). Retrieved April 21, 2017, from
http://www.epw.in/journal/2007/21/review-labour-review-issues-specials/labour-and-closure-
mill.html?0=ip_login_no_cache%3D96eefa5255381827e0e7cb0f7a492284
9. Mahaprashasta, A. A. (2016, April 16). How the Once Flourishing Kanpur Textile Mills
Decayed. Retrieved April 21, 2017, from https://thewire.in/29734/faulty-govt-policies-
corruption-and-exploitation-of-labour-how-the-once-flourishing-kanpur-textile-mills-
decayed/

34
 APPENDIX

A. VRS COMPENSATION UNDER GUJARAT PATTERN

35
B. K.K. PANDEY AWARD,1989
Under the award, the workers were granted an increase of Rs 60 in wages, when the workers had
demanded earlier, a wage payment equivalent to that of Bombay textile workers. The increment
was granted. With the condition that the workload for certain categories of workers was to be
increased. As a result of this increase in work-load, some workers had to be retrenched. To
protest against this move,28 unions participated in an agitation organized by the textile workers
of all mills. A Rail Roko Andolan also followed with the result that the award could not be
implemented. But the Wage increase was granted, all the same.

C. GOLDEN HANDSHAKE SCHEME

A golden handshake is a clause in an executive employment contract that provides the executive
with a significant severance package in the case that the executive loses his or her job through
firing, restructuring, or even scheduled retirement. This can be in the form of cash, equity, and
other benefits, and is often accompanied by an accelerated vesting of stock options. According to
Investopedia, golden handshake is similar to, but more generous than a golden parachute because
it not only provides monetary compensation and/or stock options at the termination of
employment, it includes the same severance packages executives would get at retirement.

36
D. SICK TEXTILE UNDERTAKINGS

37
38
39