Kannan Devan goes for lockout on labour stir

Kannan Devan Hill Plantations Co., based in Munnar, Kerala, today said it has declared a lock-out in six divisions of its three tea estates because of go-slow agitation by a section of the workers.

Workers are holding 70 per cent of paid-up equity capital of the company, which came to existence following the Tata group exiting from the tea plantation sector. The Tata group still has a minority stake of around 19 per cent in the company. The top management comprises ex-employees of Tata Tea.

A section of workers indulged in go-slow agitation disrupting the normal working without prior intimation or legal notice to the management, the company said in a release.

The company was forced to declare a lock-out to avoid further losses, the release said. Nearly 13,000 workers are employed in seven estates comprising 82 divisions and a lock-out would hit less than 10 per cent of the company's normal operations.

In financial year 2005-06, the first full year of operations since its inception, the company posted a turnover of Rs 1.05 billion and a net profit of Rs 20.37 million.

The company declared a dividend of 14% for its shareholders at the annual general meeting held last week.