Mumbai, July 2: The textile major Indo Rama, which has incurred a loss of Rs 80 crore, has sought the intervention of the Maharashtra government to curb violence by the Left-affiliated trade union at its Butibori plant, near Nagpur.The plea was made by company managing director OP Lohia on Wednesday to state industries minister Leeladhar Dake, who assured another meeting on July 8 here. Dake was accompanied by industries secretary Yashwant Bhave and development commissioner Jayant Kawle.
Lohia told The Financial Express that he had apprised the state industries minister of the situation at the Butibori plant. The Rs 1,400-crore company closed down one of its three continuous-process units, rendering 200 of the 3,000 workers jobless on June 21. The plant, with a capacity of 800 tonnes, produces synthetic fibre and polyester yarn of which 80 per cent is exported.
State public works minister and Nagpur district guardian minister Nitin Gadkari, who had mediated in the past between the management and union,has blamed the latter for the state of affairs.
"The irresponsible leadership, with a destructive mentality, has spoiled industrial peace," he said. The company had to go in for closure as the on-going violence and disruptive activities by the union was affecting production and quality.
The feud between the management and union has been on since last November when the Left-affiliated union overpowered the Shiv Sena-affliated one.
Immediately after the election, the union demanded termination of a three- year agreement reached between the management and Sena union in April, 1997.
The company has agreed to give a hike of Rs 1,060 - Rs 1,600 (Rs 300 to Rs 500 a month) for three years. However, the new union demanded scrapping of the previous agreement and signing a new one which was ruled out by the management.
The Nagpur district collector suggested a compromise formula, in which the management would pay an additional Rs 100 - Rs 300 a month. Gadkari also asked for payment of Rs 250 - Rs 350 a monthover and above the 1997 agreement. A suggestion was also made to pay an additional Rs 550 - Rs 900 a month during 1998-2001.
The last ditch effort of the company management at the level of deputy labour commissioner in February also failed to arrive at a compromise. The union denied all these proposals and continued to "go slow".
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
