Production was suspended for two months for overhauling works, Managing Director of the mill M Hafizuddin said, adding that 35 workers and employees are now kept on daily wage basis as their services are required for carrying out overhauling work.

However, he declined to say if the other workers and employees have been terminated.

All the 105 workers and employees of the state-owned hardboard mill demonstrated in front of the mill on Thursday evening in protest against the decision by the BCIC chairman to close it on the pretext of overhauling work.

Workers and employees said the mill authorities never responded to their appeal for increasing wages and salaries and they were paid Tk 67 instead of Tk 113 as the daily wage, in defiance of the BCIC's official order issued on February 14 this year.

The managing director, on the other hand, said the proposal for increasing wages and salaries was rejected in BCIC's board meeting held in Dhaka on July 5.

Meanwhile, the 35 workers kept on daily wage basis for overhauling have refused to work as all the 105 workers and employees have decided to launch movement for 'reopening' of the mill.

Established in 1966, Khulna Hardboard Mill was closed due to severe financial crisis on December 15 in 2002.

The mill resumed production on September 14 in 2005 allegedly on political consideration under the influence of former industries minister Matiur Rahman Nizami but nagging technical faults including leakage in boiler tubes frequently disturbed its production.

Only 12 officials including the managing director are serving at the mill as permanent staff while the authorities did not take any step to make the job of workers and employees permanent after the resumption of production in September 2005.