Lock-out declared at HUL Doom Dooma factory

Hindustan Unilever Ltd (HUL) has announced a Lock-out from July 15, 2007, at its factory located in Doom Dooma, Assam, as a direct result of series of illegal strikes launched by the workmen during the last six months. The events took a serious turn from July 6; when the workers confined the managers and officers inside the factory.

Illegal Confinement of Managers and officers

The workmen and the Union had been disrupting normal functioning of the factory over the last six months through illegal and unjustified tool-down strikes and abandoning all their places of work with a view to disrupt the normal working of the factory. They have repeatedly brought to a halt all production activities. They launched an illegal strike on July 6 wherein the workmen illegally detained and held captive in the factory 18 members of the Management staff, including a lady officer, for nearly 16 hours without food and drinking water till armed Police and CRPF jawans rescued them and freed them. The lady had to be hospitalized due to the stress resulting from the detention. The workers were trying to force the managers and officers to agree to an illegal demand of theirs immediately, in utter disregard of all established norms of collective bargaining.

Violation of Settlement Agreement

Based on the settlement signed in April 2004 between the Union and the management it was agreed inter alia that the Settlement Implementation Allowance (SIA) would be paid to the workmen effective April 1, 2007, only upon full implementation of the various clauses of the settlement. However, during the period of the settlement the workers in violation of the agreed settlement indulged in various illegal activities such as flash strikes and work stoppages. In spite of these illegal actions, the management, with a view to reach an amicable understanding with the workers initiated a bilateral dialogue. The sincere efforts of the management did not bear any fruit as the workmen led by their union continued to fester trouble and disrupt the working of the factory culminating in the illegal strike on July 6 without any prior notice.

A thorough audit of the settlement was conducted which clearly once again demonstrated the various violations of the mutually agreed settlement by the workmen and the union. The Settlement ensures that each worker draws about Rs 8,000 per month which is generous. Under the circumstances, the management did not release payment of the said allowance; which is Rs.200/ per month, as it would set a bad precedent and encourage more indiscipline and nurture a vicious work culture which in the long term would be ruinous to all stakeholders, including the workers.

Continued violation of law

The union instead of endeavoring to restore normalcy has only aggravated the situation. There have also been instances of free ingress and egress without authorization by workmen since 6th July. The company had as a measure of implementation of the standing orders issued suspension orders on July 10 to 8 personnel who instigated lawlessness and carried out the illegal confinement of 18 management staff for 16 hours on July 6. These 8 workmen had been suspended pending enquiry. The suspended workmen have, in utter disregard of the lawful instructions issued to them, continued to come inside the factory and indulged in unauthorized activities.

Grave risk to safety

All the hazardous chemicals and inflammable raw materials need to be stored with care and caution to avoid any mishandling. In the face of continuing illegal strike, no purpose would be served in permitting the workmen into the factory and to continue to bear the risk of safety and security hazards. In fact the workmen themselves will be at risk.

Finished goods blocked

About 17 trucks loaded with finished goods, which were ready for dispatch to our duty paid godown at Tinsukia, had been held-up within the factory by the workmen since July 6, causing severe financial loss and loss of reputation with customers. By doing this the workmen had further undermined the lawful business interest of the company. The trucks could be released only on July 14th with the help of police protection.

Financial damage

Due to the unfair labour practices resorted to by the union and the misguided workmen the factory has already suffered a huge production loss; thereby causing an irreparable damage in terms of the Factory's reputation and its standing as a reliable source of ordered goods in the eyes of its customers as also the reputation and goodwill of the factory.

Continued lack of co-operation

The management repeatedly tried to communicate to the workmen the illegality of their actions and the ramifications of the same on the Factory as a whole through several notices. The Management also addressed each workman through a letter dated July 13, 07 which they refused to take and hence was also published in various local English and Assamese newspapers for the benefit of all workmen and their families. However, the workmen and the Union, in spite of all the efforts of the management have refused to give a credible assurance of good conduct for a peaceful functioning of the unit thus infringing on the basic right of the management to conduct its business.

Healthy employee relations

HUL has over 45 factories spread across India in remote locations. The company has always taken a conscious policy of preferring to set up units in remote locations with the intent of catalyzing rural prosperity. The company has always followed the policy of preferring local candidates with an objective of ensuring better employment prospects within rural areas. The company enjoys positive relations with its workmen and unions across its factories and has always believed in the policy of collective bargaining for mutual gains.

HUL has a long association with Assam. The company acknowledges the continuing support it is receiving from the local administration and the Government of Assam.