Stalemate At Thermax Paudh, Bhosari Plants Continues'

The stalemate between the Thermax management and the workers' union continues after the company management declared a lock-out in its Paudh and Bhosari plants on January 24, 1997.

The lock-out follows the suspension of work by workers on January 5 and 6 respectively.

According to company officials, efforts are on to resolve the labour issue at all its chemical plants. Analysts say that the company is facing its worst ever labour problems.

The Pune-based Thermax Ltd has been witnessing a fall in its stock price consistently for the past few trading sessions with stock price plummeting to its 52-week low of Rs 279 on the BSE this week. Officials, when contacted in Pune, said that the Thermax management and the union have been meeting regularly at the Labour Commissioner's office.

 

The company said "even as the lock-out continues, the workers at the chemical plants have accepted the bonus payment. There was no effort whatsoever from the management to withhold bonus payment."

The industrial court had rejected the worker's claim that Thermax decision for the lock-out has been illegal, the company said.

It said that regular production at the chemical plants had been maintained with the help of plant managers, laboratory chemists, and supervisors.

"There has been no production loss and all customer commitments are being met. No worker has been sacked. It was suspension of work, followed by a lockout. The company is confident of settling the issue soon." According to the company officials, the deadlock over the labour problems in the company's plants is unlikely to affect the company's performance.

However, analysts say that total sales will not exceed levels recorded last year.

According to analyst at a leading institutional brokerage who has visited the company's plant in Pune, "the company says that there has been no effect on the production at chemical units. As a matter of fact they told us that they have done better on the production front without workers.

It is unlikely that they may resolve the issue before March 1997. The reason put forward by them for stagnant performance is poor offtake in the industry itself."

The lock-out in Thermax plants is a result of disagreements between the company management and union leaders over the wages issue.

The company had a meeting with workers on January 4, 1997.

The company said that the workers agitation commenced in spite of the joint commitment made by the management and the union representatives that the negotiations process would be on for a month and during this period the workmen would continue to give full production.

Explaining the decision for imposing a lock-out in the company, Abhay Nalawade, managing director of the company stated that the company made all out attempts to make an amicable settlement. He added that the workmen suspended work completely and have gone back on their word with a very unreasonable stand.

"The company is left with no alternative but to suspend the work for all the daily rated permanent workmen employed at Paudh and Bhosari plants. No daily rated permanent workman would be allowed to enter any of the plants and with the support of the authorities we will maintain law and order situation," he added.