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Goa govt seeks report on labour unrest in ACGL

Press Trust of India  |  Panaji 

The Goa government has sought a detailed report on the in the state-based Automobile Corporation of Goa Limited (ACGL) plant, a bus body building company promoted by

"I have asked for a detailed report on the crisis. We will study it," Chief Minister Digamber Kamat, who also holds Industries portfolio, told reporters last night.

The state-owned Economic Development Corporation (EDC) is a share holder in ACGL, which is an associate company of Through EDC, Goa government holds 6.5 per cent shares in the company, which has holding 43 per cent shares.

The management has claimed that the in the plant since March one has pushed them into a dire situation.

"We are in very dangerous situation. If this situation continues than we may face bankruptcy," Managing Director N R Menon said on Wednesday. He alleged that around 100-odd regular staff affiliated to the labour union has put the entire work to halt.

"They are preventing 1800 contract workers from entering into the plant demanding huge salary hike which has brought down the production to nil," the MD said.

The work has come to complete standstill after the labour union has remained adamant on their salary hikes, which were not approved by the management. The plant, conceived at Honda Industrial estate in the backward taluka of Sattari in late 80s, fears shutdown as it has been facing daily losses to the tune of Rs 1.25 crore.

Menon said that the company has to fulfill commitment of supplying 1,100 buses to various clients including West Asian countries and Maharashtra State road Transport Corporation (MSRTC).

"We have the order pending of 500 buses from MSRTC which needs to be honoured on time or else we will be fined penalty of Rs 20,000 per bus per day," he said.

The company jointly promoted by and state government run Economic Development Corporation of Goa (EDC) is into sheet metal components, assemblies and bus coaches.

Tata has 43 per cent share holdings while EDC has 6.5 per cent shares in it. Menon said that the company's turnover will plunge from Rs 330 crore financial year (FY) 2008-09 to Rs 170 crores FY 2009-10.

is to one of the largest manufacturers of bus bodies in India.

He said that around 40 ancillary industries employing 1,000-odd people are dependent on the work orders outsourced from ACGL, which will also be affected due to labour strike.

First Published: Fri, March 12 2010. 15:43 IST
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