Defying HC order, NLC workers go on strike

Defying a Madras High Court order, employees of Neyveli Lignite Corp Ltd (NLC) started an indefinite strike on Wednesday night in protest against the central government’s decision to divest a five per cent stake in the company.

Sixteen unions have joined the industrial action. The NLC management, however, said on Thursday production was not impacted by the strike.

S Rajavannian, general secretary of NLC Labour Progressive Federation, backed by the Dravida Munnetra Kazhagam (DMK), has confirmed the union’s employees were in the strike. “We have not heard anything from the Centre till 7 pm last evening, so workers went on strike”. The striking unions had set a Thursday deadline for the Centre to withdraw its decision.

R Udayakumar, secretary of the Anna Workers and Staff Union, which is affiliated to the ruling All India Anna Dravida Munnetra Kazhagam (AIADMK), also confirmed the strike. “We are only protesting, but the workers have decided to gone on a strike,” B Surender Mohan, chairman-cum-managing director of NLC, said all the officers had joined work and “we are able to manage the production as usual. Around 2300-2400 Mw generation is there and we are supplying around 1,000 Mw to Tamil Nadu.”

“Even though 12,000 regular employees and 11,000 contract workers have not reported to work, we could manage the production with our officers,” Mohan added.

Asked whether the company will go back to the court or take any action against the workers, he said: “We have to examine the situation. Right now, the work is going with police protection”.

On Thursday, NLC approached the high court against the strike arguing that the agitation would affect the lives of the public, since the company was supplying power to various states. “Yes, the court has issued a stay order. NLC is a public utility and any issue in its operations would affect the public. What I heard is that the Court has advised the unions from engaging in strike based on this,” said Mohan.

NLC has a capacity to generate 2,490 Mw at Neyveli and another 250 Mw at Barsingsar in Rajasthan. It currently supplies around 1,100 Mw to Tamil Nadu alone and also extends supply to other states. Besides, it is supplying lignite to independent power producers for power generation.

Earlier, an official said the strike could significantly reduce the operations of the company, since a portion of the executive staff were also expected to enter into a strike. “If the unions would go for strike as indicated, there would definitely be a decrease in our production, but it would not be zero,” said the official.

On Tuesday, the AIADMK and various workers’ unions organised protests against the proposed divestment.

“NLC has paid around Rs 1,292 crore as tax and dividend to the central government in 2012-13. But the government is trying to divest the company, which would fetch them around Rs 466 crore,” said Rajavanian.

Earlier, Tamil Nadu chief minister J Jayalalithaa sent a letter to Prime Minister Manmohan Singh, in which she proposed that central government’s five per cent stake in NLC should be offered to Tamil Nadu‘s public sector undertakings such as Tamil Nadu Industrial Development Corp (TIDCO), State Industries Promotion Corp of Tamil Nadu (SIPCOT) and Tamil Nadu Industrial Investment Corp (TIIC).

In response to this, Union finance minister P Chidambaram on Monday said the government would consider the offer.

He added he would ask the capital markets division to quickly consult the Securities and Exchane Board of India whether it would be permissible under the regulations.

However, a cross section of the workers' unions did not agree to the proposal and said they would think of the future plans if the Centre agreed with the state government's proposal.