Siv Inds Declares Lay-Off

The Coimbatore-based SIV Industries has officially declared a lay-off for its 5000-odd workforce.

While the companys operations have been suspended since the last four months, the management had continued to pay workers their salary in full for this period.

Company sources told PTI that the management had been forced to take the step due to the Madras High Court's Green Bench directive in January last about discharge of effluents from the factory into the River Bhavani.

The high court had directed SIV Industries, a major manufacturer of viscose-based yarn and fibre products in the country, not to let out effluents into the River Bhavani from January 26 and suggested setting up of a modern effluents treatment plants.

Following the orders, the company suspended operations in all its plants and pleaded for exemption from Section 5 of the Industrial Disputes Act.

In a notice served to trade unions, the company stated that since it had been forced to stop operations following the court order and in view of the 'inaction' of the state Pollution Control Board, the lay-off was being declared.

The company felt that immediate implementation of the high court's directives on effluents treatment was not possible, the notice said, adding that the management's attempts to sort out the differences with the state pollution control board hadfailed to bear fruit.

SIVs annual wage bill is estimated at Rs 35 crore. However with all operations suspended, "this situation could not have continued for long," said a top official of the company while talking to Business Standard from Coimbatore. The earlier plan was to implement the lay-off in a phased manner.

All expansion plans have been put on hold, it may be recalled, with the company reporting a net loss of Rs.29.98 crore for 1996-97, and a cash loss of Rs 10.23 crore.

Last year the company had made record profits - Rs.63.8 crore and had drawn up an ambitious Rs.500 crore expansion programme.

But in keeping with the action plan submitted in the Supreme Court it had appointed US-based Ekano as consultants. This company was to suggest equipment for source control and the tertiary systems.

Estimated cost of the equipment is Rs 20 crore.

The company had already twice given alternative jobs on the advice of the joint director of the labour department here.

At present, it had no alternative work to offer to its employees, and it had been decided by to declare a lay-off.

The company has also directed all substitute workers not to assemble before the factory gates until further notice.

The company felt that immediate implementation of the high court's directives on effluents treatment was not possible, adding that the management's attempts to sort out the differences with the state pcb had failed to bear fruit.