Workers not to report on duty from Oct 19 at Thane: Raymond

Following stalemate in negotiations between the employees and management, the Gautum Singhania-led Raymond has issued a notice asking its workers not to report to work at its neighbouring Thane plant from October 19.

The textile major plans to foray into the realty business by developing residential and commercial complexes on its 125 acre plot of mill land at Thane where nearly 1,885 workers are employed.

However, its plan ran into a roadblock as the union refused to accept the compensation offered by the management for shutting down the mill.

The company on Friday night issued a notice to the workers, asking them not to report on duty from October 19. It said that it would instead pay them their salaries regularly as it did earlier.
    
"Despite no production activities being carried out in the mill, we continued to make payments to the employees. The company was incurring idle expenditure on transport, canteen, electricity and water, in addition to fixed expenses."
    
"Therefore, we have asked the workers not to report for work but they would be receiving their salaries on time. This would help us in reducing additional costs," a senior official of the company told PTI requesting anonymity.
    
The notice stated that despite a VRS settlement signed between the management and union, the company gave various proposals in respect of additional payment of compensation to the employees granting substantial benefits.

"However, the union and the employees have not accepted any proposal given by the management. The management, therefore, has no option but to withdraw all the offers made by it," the notice said.

When asked about the negotiations between the management and employees, the official said, "We have not yet taken any final decision on compensation. We are in talks with the union. As of now, we have asked the workers not to report on duty," he said.

However, the union claimed that the company has agreed to pay a compensation package of Rs 313 crore.
    
"After several deliberations, we managed to negotiate for Rs 313 crore as compensation. It has been agreed that the management would pay 68 per cent of the amount immediately and the rest after five years," Kamgar Utkarsha Sena's President, Jitendra Joshi said.
    
"However, the employees want the remaining amount to be paid in three years. Once this stalemate is over, the workers would shift to the new location decided by the company," he added.
    
Earlier, the union had sought Government intervention in the matter. The Maharashtra Government has said that it would not give a go-ahead to the company's realty plans unless the compensation matter is resolved.
    
The Bombay High Court, too, had recently directed the Thane Municipal Corporation (TMC) not to sanction any development plans of the company until it clears all the dues of its workers.