Pen Uttarpara Plan, Basu Tells Hind Motors

The West Bengal chief minister Jyoti Basu has asked automobile company Hindustan Motors Ltd to submit a detailed proposal on the company's plans for the Uttarpara unit in West Bengal.

This comes against the background of a controversial proposal from the company for a three-day week at the unit following a drastic fall in sales.

Sources in Writers' Buildings claim the state government has asked the company to submit a concrete proposal it has chalked out for the company's West Bengal unit which currently employs about 11,000 workers. This, it is understood, was communicated to Hindustan Motors chairman C K Birla and his executives during their recent meeting with the chief minister.

 

The controversial move proposed by the auto company to have a three day week has stirred a hornet's nest, particularly since the move is unprecedented for the state.

The government is seriously considering the fallout of allowing such a move to the company more so because of the large number of employees currently on the company's payroll at the West Bengal. HM spokespersons were not available for comment.

Automobile manufacturers including Hindustan Motors have had to resort to production cuts and cost rationalisation measures to remain competitive and meet the challenges posed by the economic situation and global competition, the management claimed. Besides paring its workforce further by extending the separation scheme for another two months, the company had decided to freeze production thrice a week.

Though there will be no output at the plant on three of the six working days every week, there will be no cut in the employees salaries.

While the Citu-affiliated Hindustan Motors & Hyderabad Industries Workers' Union are against production cuts and rationalisation of workforce, they have backed the company's proposal to seek sales tax incentives for the Ambassador cars.

"In a communique, submitted to the West Bengal chief minister, we have asked the state government to look into the matter, take measures to help the company sustain the current recession and ensure that Ambassador taxis get preference in the state", said Sukhendu Biswas, secretary, Hindustan Motors & Hyderabad Industries Workers' Union.

Samar Chakraborty, working president and Subrata Mukherjee, president of the Intuc-affiliated Hindustan Motors & Hyderabad Industries Employees Union have also urged for immediate utilisation of the vast stretch of unused land in and around the existing factory.

Though the unions have backed the management's effort to modernise the unit, the investment amount at Uttarpara unit in comparison to that at its other plants has been criticised by the unions.