Workers contest LML claim to sickness

LML workers have opposed the application of the management to the Board of Industrial and Financial Reconstruction (BIFR) for declaring it a sick industrial company.

The LML Mazdoor Union, the representative body of the LML workmen, has written to the chairman of the BIFR (a copy of the letter is with Business Standard), questioning the company's position that it has made heavy losses.

The union said "this cannot be accepted because only last year the company went in for financial restructuring and had organised a sum of Rs 200 crore". Therefore, "any plea for sickness has to be investigated ... it must also be investigated as to how the company sustained such a loss in [such] a short period of time," the union said.

The union requested the BIFR to order an investigation into losses by appropriate authorities, before taking any decision.

The letter further said the matter was being considered by the state government, which granted the firm the status of relief undertaking for one year and the company had asked for a renewal of the grant.

UP Labour Commissioner Sharda Prasad has written to the UP labour secretary saying that the firm was interested in resuming operations and hence would not want to retrench workers. In such circumstances, it should immediately lift the lock-out and start production.

Lastly, the union told the BIFR that since the matter concerned the future of the company, the opinion of the workers must be taken.