MTR Foods impasse: talks with union today

The labour commissioner has called a meeting between the management of MTR Foods Ltd, the Bangalore-based Rs 135-crore packaged foods manufacturer, and its workers' union on Monday to resolve the impasse between the management of MTR Foods and its workers' union.

MTR Foods had declared a lock-out at its factory in Bommasandra on Saturday, on the outskirts of Bangalore, following the unruly behaviour by its 600-odd employees.

The employees have been demanding a hike in their salaries to match that offered by global firms after the takeover of MTR by Orkla Group of Norway in February this year.

According to company sources, the workers had been on a go-slow strike since May 2 after the management declined to consider their demands for a wage hike.

"We had effected a hike in salary for all employees for three years, from August 2005 and told the workers that their demands will be put before the board for consideration. But the workers resorted to a go-slow strike and caused damage to raw materials and shut down the production units. To protect the company's property we were forced to declare a lock-out with effect from mid-night on May 4," company sources told Business Standard.

The workers had submitted their demand in a letter to the management on April 26. They have been demanding a salary hike of Rs 4,000 per month per person. However, the management stated that they will revise their salary in August 2008.

Meanwhile, the state labour commissioner has convened a meeting with the management representatives and workers' union for a discussion on Monday morning to settle the issue.

"We have been informed in a letter by the management that they would declare lockout in the factory if the workers did not restore peace in the premises by Saturday. Since they have declared lockout, we will take up the matter at the earliest and try to resolve the differences," an officer in the labour commissioner's office said.

A senior company official said, "We are not averse to any discussion with the union. We are ready to listen to their grievances and consider their demands if their demands are reasonable."

The company official said that the employees are eligible for all statutory benefits like PF, ESI and gratuity. In addition to this, the employees have access to a subsidised canteen.