In a statement, ASE general manager P L Raval and Chemical Mazdoor Sabha general secretary Bharat Pathak said that the settlement would cost the company Rs 4.10 crore.

According to them, those retiring till 1999 end would get gratuity, 15 days salary for each year of service and Rs 11,000 as ex gratia.

Those who retire between 2000 and 2002 would get gratuity, 15 days salary per every year of service and Rs 16,000 as ex gratia.

They further said that the scheme would be applicable to 78 workers who would get 30 days salary for each year in the company, gratuity for 15 days per annum and for the remaining years 15 days of salary for each year of service. Apart from this, they would be also given Rs 10,000 as ad-hoc ex gratia.

The Ambalal Sarabhai Enterprises had appealed before the State Labour Commissioner on January 16 to close its glass division. According to Pathak, since then the Sabha was trying to reach a settlement. The settlement has been also approved by Rajkumarsinh of the ITUC.

Prior to this, the Deputy Labour Commissioner Vadodara had not accepted the Ambalal Sarabhai Enterprises' appeal to lay off workers for more time after having accepted to give a lay off period of 50 days following a major snag in the plant's burner on July 8, 1997.