Company plans to use the mill’s 126 acres for realty development.
The employees of Raymond’s defunct Thane mill are likely to receive higher compensation, as the textile company has offered to reconsider its earlier proposal.
Raymond, which plans to use the 126 acres of the textile mill for realty development, had been until recently adamant about its earlier compensation package. The Thane mill has been closed since the last six months.
The company had proposed to pay Rs 160 crore to the 1,885 employees of the mill, while the employee unions have been pressing for Rs 328 crore. The Maharashtra government had asked Raymond to make an acceptable offer. The government had also warned Raymond that otherwise it would be nationalized.
“The company has offered to reconsider its compensation package. This will be possible after the Thane Municipal Corporation offers additional floor space index (FSI) for the redevelopment of some slums situated on the portion of company’s 126 acres,” state labour minister Hasan Mushrif told Business Standard.
He said the Thane mayor had convened a meeting on August 17 to discuss the issue. The state labour department, the company management and employee unions would attend the meeting.
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Mushrif said he met Raymond Chairman Gautam Singhania yesterday. “Gautam has offered to pay 50 per cent of the proceeds Raymond receives from the redevelopment of slums towards compensation to employees. The state government hopes Raymond will keep its promise, as the government will not compromise on the interest of employees,” he said.
A Raymond spokesperson said, “In the context of the proposal made by Opposition MLA Pratap Sarnaik that he, with the support of the Thane Municipal Corporation, would ensure that the state government lifts the ‘reservations’ on the land and makes available extra FSI for development, we have agreed to evaluate the proposal.”
Adding: “However, we would like to reiterate that our VRS (voluntary retirement scheme) offer of Rs 150 crore for the factory workers stands as on date and any increase over this amount will depend on the outcome of an evaluation of this proposal and subsequent government approvals, resulting in extra benefit to the company”.
Pratap Sarnaik, Shiv Sena legislator from Thane, said the civic body had been supportive when it came to the recovery of octroi or distribution of water. “Thane civic body will look into all options to support Raymond for slum redevelopment, as ultimately workers should benefit,” he noted.