Tuesday 26 June 2018

Jaya Shree declares lockout in Bengal mill on union crisis, may relocate

Textiles

For the first time since commencing operations in 1949, the Aditya Birla Group-held Jaya Shree Textiles has declared an indefinite lockout of its mill in Rishra, West Bengal, due to rising trade unionism and may decide to move this plant out of the state in case matters remain unresolved. For the past 20 days, despite some of the company's 5,700 workers reporting for duty, a section of trade union leaders has been preventing commencement of production resulting in this factory incurring a top line loss of Rs 50 million a day. Besides, several export orders, which make up for 25 per cent of its Rs 20 billion revenue, have also been cancelled. Its logistics cost, to meet its previous delivery commitments to clients, has also risen substantially. “A large section of workers want to report for work but they are being prevented by some trade union leaders” Moloy Ghatak, the state’s labour minister said. The trouble started last year when the company’s management, in December 2017, dismissed nine workers alleging illegal strike and unruly behaviour. They are facing legal proceedings. Workers in this factory have been protesting since May 2017 against the management’s offer to implement a single annual increment in place of three increments in a year.

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