Scrap plan permanently, demand NLC employees

The labour unions and other employees' associations at Neyveli Lignite Corporation (NLC) are likely to urge the central government to scrap the NLC disinvestment plan once and for all.

NLC Graduate Engineers' Association president I Nedumaran told Business Standard that they would again strike work if the government persisted with its disinvestment plan.

"We know the government's decision to put the disinvestment plan on hold is a temporary measure. Our decision to call of the strike is also a temporary one," he added.

He said that though the government was planning to sell 10 per cent of the NLC equity, later it would finally let it go into the hands of private sector.

"NLC has been doing well both physically and financially, and making profits of over Rs 1,000 crore over the past few years," he said, adding, "We are doing well, why do you want to disturb us?"

Stating that the employees feared job losses in view of the proposed disinvestment plan, Nedumaran also pointed out that the NLC was offering power at a cheaper price of Rs 2 per unit compared to over Rs 5 offered by the private power producers.

"If it goes into private hands, power costs will go up and all southern states will find it difficult to meet the subsidy burden," he said.

Nedumaran also said that there were about 60 villages in and around Neyveli before the commencement of the corporation. The villagers who had provided their lands to the corporation were either relocated or offered jobs in the company.

The people offered their lands for the corporation only due to the fact that it was a public sector organisation that would provide permanent livelihood.

NLC Workers' Progressive Union general secretary S Rajavanniyan said that the unions and associations feared privatisation would result in massive job cuts and reduction in their wages and benefits.

He also said that preferential allotment of shares to employees would not work out as the workers were not in a position to purchase the shares.

"About 10 years back, the corporation provided 200 shares to each employee, but 75 per cent of the employees have sold them. When exigencies arise, they will sell of the shares, paving the way for privatisation," he explained.

Besides 19,000 permanent employees, the corporation also engages about 20,000 contract workers.