The Andhra Pradesh government is worried that the attack on Apache Footwear India Private Limited, the shoe-maker for global brand adidas, by its employees would mar the chances of attracting new foreign investments.
Apache has announced a temporary lockout at its factory in Tada mandal of Nellore district following locals damaging its machinery.
Trouble started when workers boycotted duties and staged a dharna at the factory on Tuesday seeking hike in salaries. There were arguments and some workers pelted stones breaking glass panes of the office building.
Following this, the footwear company, employing about 6,000 people from the local area, announced it would close the factory till March 17 and not pay wages to them during this period.
Company officials have apprised the state administration of the attack. They said the machinery was damaged and it would take at least a week for the company to get back on track. On the other hand, the workforce justified its action.
“The Chinese company has its representatives working at the Nellore plant. The attack on the company will send wrong signals to the industry,” a senior government official told Business Standard.
According to him, the workers should have represented the issue through the right forum – labour commissioner – and not resorted to vandalism.
The state attracted investments by extending special incentives like land and power at a reduced tariff. Providing protection to the men and machinery was the mandate of the state, he said.
Senior officials from Apache would visit the factory later this week to assess the situation and also hold talks with the employees. The district administration is in touch with the Apache management to ensure that the issue did not escalate further.
“Law will take its course,” the senior official said, adding the police was dealing with the situation. He said the newly-formed Industrial Task Force would also be deployed at the factory.
The Apache factory became operational in 2007. Initially, the company agreed to provide employment to 25,000 people in three phases and employed 10,000. About 4,000 workers have left the company for various reasons.
The government official, however, did not elaborate if the latest incident would impact the company's expansion plans in the state. "Generating large-scale employment is not easy. We should protect the properties,'' he said without taking a stand on the labour demand for hike in wages.
