Vrs, Bank Interest Waiver Key To Solution: B & C Brass

The management of the beleaguered Best and Crompton Ltd yesterday said the stalemate arising out of the three-week suspension of operations announced on Monday, could not be resolved without the workers agreeing to the voluntary retirement scheme and the bankers agreeing to waive interest on the dues from the company.

The suspension may or may not be illegal. But we were forced to close down, as the company was spending Rs 1 crore every month without earning a single rupee, said K V R Balakrishnan, director, Best and Crompton .

Saying that the company had an excess staff of about 430, Balakrishnan observed that the third and latest voluntary retirement scheme announced by the company received only partial response from 140 out of 275 employees, sought to be relieved in this round.

 

The remaining workers, Balakrishnan alleged, were being persuaded by the labour union not to accept the present scheme, on the promise that it would get them a higher compensation.

Contending that the union had thus gone back on its agreement with the Best and Crompton management on voluntary retirement scheme, the director, however, asserted that there was no link between the present suspension order and the voluntary retirement scheme stalemate.

An acute shortage of funds is the only reason for suspension of operations and the decision is taken in consultation with the court-appointed administrator, S Venkitaraman, Balakrishnan said.