No solution to LML imbroglio in sight

After LML ceased production in February this year, and recently declared itself sick, industrial circles in Kanpur have received the news differently.

LML managers in Kanpur said this was the route for revival. But workers see this as a preparation for a long-term closure of production.

They also say this could be a signal of the break-down in the negotiations regarding seeking a strategic partner. But senior managers say negotiations are on with a party and have reached an advanced stage.

The directors are not disclosing the relevant figures. When contacted, KC Agarwal, director (finance), based in Gurgaon, told Business Standard that figures could be disclosed only by Managing Director Deepak Kumar Singhania. The latter could not be reached.

Meanwhile, there has been ferment among workers. The management has entered into an agreement with the registered union, Lohia Machines Karamchari Sangh (LMKS), named "management union" by the rival group of JP Pandey and other workmen. The management agreed on payment for January and February this year. Consequently, it withdrew its case at the Allahabad High Court, on the grounds that an agreement had been reached.

Justice Vineet Saran, while allowing the withdrawal of the case, ruled that the union of JP Pandey and workers representatives "shall be at liberty to take appropriate decision with regard to payment of arrears of the workers". This union is not a signatory to the agreement.

However, a significant section of the workers is with JP Pandey and others, who plan to pursue their case for payment of arrears beyond February this year.

When asked, RK Srivastava, executive director (personnel and administration) told Business Standard: "Since we are paying the workers their dues for January and February, the writ was not required and was withdrawn. We have paid about Rs 80 lakh and are in the process of paying Rs 40 lakh more. An additional Rs 50 lakh will be paid at the end of the month, thereby meeting our commitment."

Again on September 8, the workers staged a demonstration against the additional labour commissioner. About 300 workers were arrested, but released after two hours without any charges being framed against them.