90 Avon workers accept severance package

The process of the distribution of Rs 1.07 crore compensation among the 306 workers, who had been rendered jobless following closure of two sections of the Avon Bicycle Component Private Limited on September 8, has been going on at a slow pace.

Though the workers' union remains firm on its demand regarding the reversal of closure decision of two sections, as many as 90 workers have accepted compensation to the tune of Rs 33 lakh so far.

The Punjab Labour and Employment Department Secretary permitted the closure of handle and pedal divisions of the company on grounds of continued losses and indiscipline cited by the management.

They granted permission to the company subject to the conditions that every workman likely to be affected by the closure would be compensated as per the provisions of sub-section (8) of Section (O) of the Industrial Disputes Act.

Disagreeing with the closure decision, the workers' union filed a review application that was dismissed. Unrelenting, the workers said they would move court.

Legal representative of Avon Bicycle Component Private Limited, D B Arora said so far 90 people have taken the compensation and we are willing to pay off any time. "With this, 33 per cent have taken the compensation."

Center of Indian Trade Unions (CITU) General Secretary Raghunath Singh said, "We are not accepting compensation. A small proportion of workers might have accepted, but the majority will continue to fight and not accept closure compensation. Our main contention is that the grounds on which they obtained permission to close the two divisions are false. Even if all the workers accept compensation, it would not justify their action to close the two divisions."

The company management, on the other hand, said it was firm on closure.