Delayed Salary Angers Cesc Workers

Over 250 officers and employees of the CESC Ltd faced a major delay in their salary payments for November 1997 as a result of insufficient funds in the company accounts.

The bounced cheques were presented again after a few days at the companys advice and were encashed at the second attempt.

Though the management has explained that the accounts ran short of funds due to a misunderstanding between the company and the banks, trade unions staged demonstration at CESC offices all over Calcutta.

A further instance which provoked the employees ire was the fact that the cheques for gratuity payment of employees retiring on December 31 were dishonoured.

 

The employees also allege that the cheques issued to the Life Insurance Corporation against salary-linked insurance policies were not encashed.

In a letter to the managing director of the company, Rathin Sen, general secretary, CESC Union expressed concern at what he described as cheques issued by CESC Ltd are being bounced everyday.

Bouncing of cheques, he claimed `was unknown and unheard of in CESCs 100 year old history

The CESC management explained that the company was passing through a difficult financial situation.

However, its working capital limits was recently increased by Rs 30 crore by its bankers consortium, in a display of confidence in the companys ability to tide over the crisis. There was a few days gap between the enhancing of the working capital limit and the issue of salary cheques, the management emphasised.

The management objected to the unions expression bouncing of cheques. The banks, a company spokesman said, merely asked the employees to re-present the cheques after a few days. When the cheques were presented again, they were duly encashed. All cheques issued to all concerned have since been encashed, claimed a CESC spokesman.

The union has alleged that there is more to it than just the dishonouring of cheques. Payments to medical stores, clinics, nursing homes and hospitals have been suspended. CESC employees are being denied treatment by several hospitals and nursing homes as the company is unable to clear the bills. Even medical stores from where the CESC employees are supposed buy their medicines, are refusing to supply medicine citing non-payment of the bills by the company.

CESCs central stores at Park Circus, the union complained, are almost dry as the suppliers are not receiving their payments.

The CESC employees affiliated to the CITU-led Workmens Union staged demonstrations at the offices of the respective heads of departments. They also handed over copies of the letter written to the managing director. The management which recently signed a wage agreement negotiating a hike of around 13 per cent, is facing the wrath of workers in this manner after a long time. The officers have refrained from staging noisy demonstrations, but met the managing director to express their concern.