MUMBAI, February 20: Power-utilities major Siemens India, in a bid to prune its medical-engineering business, plans to close down its oldest medical-equipment factory at Worli in central Mumbai.Sources point out that some of the hi-tech machines of this division have already been shifted to its Goa factory. In protest the All India Siemens workers' union filed a complaint in the industrial court in September 1997 about unfair labour practices. The case is coming up for hearing on March 3, 1998.
The complaint states "The machinery sought to be transferred is the bulwark of the manufacturing process of the Worli factory and without this the entire manufacturing activity will come to a halt." Siemens has also reportedly stopped taking fresh orders for manufacture at this division.
The complaint further states that, "The purpose of the company in opening the Goa plant is to avail of various benefits like sales-tax holiday and rebate. And it has not appointed a single workman at the Goa plant." Among theworkers it is a foregone conclusion that the division will be eventually closed down as a large number of workers in there have availed of the voluntary retirement scheme (VRS) offered by the company.
Says Uday Mahale of workers union "In August last, when the company launched a VRS about 20 per cent employees at the medical division quit thinking that the it may close down. Out of the 350 employees only about 114 remain. And, going by the pace of production it is certain that the management will ultimately close down this division."
The official spokesperson of the company said, "Siemens has embarked upon a four point programme for a turnaround and as a result of this has identified areas of concern and is doing the needful in order to maintain its competitiveness in a dynamic market. This is applicable to processes, products and people. As far as employees are concerned, the company will take care of their interest by following the due course of law and abide by it." Company sources suggest Siemensplans to restructure the medical engineering division as a means to cut down costs.
The Worli unit manufactures various types of X-ray machines, sonography equipment, generators and other machines related to medical diagnosis. The division has been operational for the past 35 years contributing Rs 24 crore to the company's turnover.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
