Himachal industries lay off workers following recession

The hilly state of Himachal could not escape the heat of the global financial meltdown.The industries in the state have started laying off the employees as a part of cost-cutting measures.

The units located in Baddi-Barotiwala and Nalagarh area that account for more than 70 per cent of industries in Himachal are shedding their workforce to resort to cost cutting.

According to the Centre of Trade Union(CITU) leaders in Himachal, the impact of the economic slowdown has definitely affected industries in Himachal, where employers have started giving pink slips to the employees.

N T Ranaut, general secretary, CITU said units like auto ancillaries and other manufacturing units have laid off more than 500 employees in wake of the recession.

Recently, auto parts manufacturer Gabriel India Ltd (GIL), which opened its plant in Parwanoo few months back, has sought permission of the labour department to lay off 140-150 workers.

Similarly, Su Kam Power System, manufacturers of power inverters, had suspended production in Baddi last month, citing no demand. There were rumours that company had applied for closure of their units in Baddi, but the labour department in Himachal maintains that things have now been sorted out and there is no issue of the company closing its operations.

Another company Hunter Telecom India Pvt Ltd had closed down their operations in Baddi last month, thus laying off around 50 workers.

B R Verma, Himachal labour commissioner, said the state has somewhat managed to withstand the impact of the recession .He said that the department had received two proposal where companies have requested for permission to close down the units.

While Purewal industries have applied for closure of their unit, Gabriel India Ltd has sought permission for retrenchment.

Purewal industries have applied for closure of one unit at Jubbar, as the company is unable to meet the struggle posed by industries from China that has rendered their units uncompetitive. Around 491 employees are working in the unit.

Even as the state government has refused the company to close its unit at Jubbar, the company has moved the labour tribunal. Similarly, the order for Gabriel India Ltd permission is awaited.