Nirma relieves 2300

Labour Commissioner seeks explanation on Saurashtra Chemical's closure

Nirma group has relieved some 2300 odd employees from its Saurashtra Chemicals plant near Porbandar while taking over the management of the company from S K Birla group.

Assistant labour commissioner A I Shaikh, who is investigating the matter had a meeting with both the sides on Sunday. Shaikh has sought explanation from Nirma on closure of plant by the Nirma group.

When contacted by Business Standard Shaikh said it is possible for the new owner under 25 FF of Industrial Dispute Act to relieve employees when unit is transferred from one owner to another.

However, he was quick to add that new management can not shutdown the plant.

When contacted C J Bhatt, Senior Executive Director, Saurashtra Chemicals said company has shut down the plant as it does not have enough employees to run the plant.

S K Birla owned Porbandar Plant of Saurashtra Chemicals (SAUCHEM) was sold to Karsan Patel owned Ahmedabad based Nirma Group on June 27, 2005; of which the legal charge has been taken over by the new management w.e.f. 18th February 2006.

Chemical plant at Porbandar produces 900 MT of chemicals per day mainly comprising of Soda Ash, Calcium Bi-Carb and Bromine in a 24 hours operation.

As soon as the new management took control of the plant, it issued notices to the workers of the company asking them to reapply and appear for the formal interview with the new management.

"Since Saturday night the plant operations have been shut down and to our surprise; they have issued notice which states of relieving workers from their duty and we are a group of employees who have been here since last night as we were in night shift duty and have yet not left the premises. There is nobody from management side to hear us," claimed Rajendra Gokani, leader of the workers union at Porbandar-based Saurashtra Chemicals and a company employee.

Gokani who being in night shift duty was present in the plant as the gates of the factory premises were locked out and workers after going through the contents refused to leave the factory premises, nor were the other workers scheduled to start their new shift allowed to enter the company premises

There are 2,300 employees engaged either as a full-timer or as contract workers, "The notice also states that as the new management has taken over the charge of the works legally, all the employees of Saurashtra Chemicals are relieved with immediate affect, their dues along with 30 days salary package shall be settled in a due course time of 10 days," explained Gokani.

There are 1,382 employees on pay-roll of company while rest are on the contract rolls, said Gokani.

Further, on re-employment of the relieved workers the notice also states that those who wish to work with the new management will have to re-apply for the job and face interview, added Gokani.