South Gujarat Sugar Factories Accused of Rs 150 Cr Wage Evasion

Surat : South Gujarat’s cooperative sugar factories have come under scrutiny for evading payment of minimum wages to approximately 1.5 lakh tribal sugarcane harvesting workers, leading to an estimated wage loss of Rs 150 crore. Workers who have attempted to seek justice by filing cases in labour courts are reportedly facing harassment and deprivation of work.

The issue gained traction when the Gandevi Sugar Factory in Navsari was accused of pressuring workers to withdraw cases filed for non-payment of minimum wages. Despite the Gujarat government increasing the minimum wage for sugarcane harvesters from Rs 238 per tonne to Rs 476 per tonne effective April 1, 2023, many factories continue to pay only Rs 375 per tonne, significantly shortchanging the workers.

In 2023, 16 workers from Gandevi Sugar Factory filed a complaint with the Navsari Government Labour Officer (GLO) over wage discrepancies. When the factory management failed to address their grievances, the GLO advised the workers to escalate the matter to the Labour Court in Navsari. These cases were filed on May 16, 2024.

While awaiting a court decision, workers reported increased pressure from the factory management to withdraw their complaints. Initially, contractors stopped assigning work to labourers who had filed cases. Later, direct coercion was applied, with some workers being relocated to far-off districts. Under these conditions, two workers withdrew their cases, while 14 continue to fight for justice. The Labour Court judge recently listed seven of these cases for resolution at the upcoming Lok Adalat on December 14, 2024, allegedly without consulting the workers’ union.

The exploitation of sugarcane workers extends beyond wage evasion. Annually, nearly 1.5 lakh tribal labourers from Gujarat and Maharashtra migrate to South Gujarat to work at 14 cooperative sugar factories. These workers endure six months in substandard housing and difficult living conditions with their families. Despite repeated public inquiries and media reports highlighting these issues, there has been little improvement.

The Majur Adhikar Manch Dang, a prominent advocacy group, has condemned the actions of the Gandevi Sugar Factory management and other cooperative factories. “This exploitation of workers cannot continue. We demand protection for labourers, swift resolution of wage cases, and immediate compliance with the minimum wage law,” said Jayesh Gamit, secretary of the Majur Adhikar Manch Dang. He also warned that failure to address these demands could lead to mass protests by workers.

The alleged wage evasion and harassment underscore the systemic challenges faced by South Gujarat’s sugarcane workers. The unresolved cases and continued worker displacement reflect the urgent need for stronger labour protections and accountability measures.