Thermax Shuts Two Chemical Units As Labour Talks Fail

The chemical division of Thermax Ltd, the Pune-based engineering company, has closed down its manufacturing units in Bhosari and Khopoli following labour trouble.

The Hind Mazdoor Sangh union, representing the labourers, has dubbed the management action as illegal and announced an indefinite protest action against Thermax at its corporate headquarters in Pune.

The union has been agitating for a new wage settlement since the last one expired in December 1995.

Several rounds of negotiations over the previous year, between the management and the union have failed to come to a consensus. As against the unions demand for a hike of Rs 3,500 per month , in addition to Rs 600 per month in variable dearness allowance, the Thermax management has conceded a pay hike of only Rs 750 per month.

 

The chemical division employs 99 permanent and 198 temporary workers.

According to Abhay Nalawade, managing director of Thermax, the representatives of the union failed to justify before the management their case for an increased pay hike for the workers of the two units.

In spite of the workmens tactics during the negotiation period, the company has maintained a very fair, reasonable and calm stand, added Nalawade.

He charged the workers with breach of commitment to maintain full production during the one-month negotiation period.

He justified this as the main reason for the company to suspend work.

The chemical division of Thermax Ltd is one of the most profitable division and contributes around 10 per cent of its total turnover.

The Paudh plant in Khopoli manufactures ion exchange resins, depressants and speciality chemicals.

The Bhosari plant has been geared up to meet the requirements of the new joint venture between Thermax and Culligan Inc of the United States.

The plant produces bulk containers for carrying water and water treatment equipment.