The labour unions are not against the judgement as far as closure of the units is concerned. However, the compensation package being offered is most unsatisfactory, a senior labour lawyer told Business Standard.
The labour unions of the industrial houses had demanded a compensation package envisaging 180 months' consolidated salary, besides gratuity and other dues. The Supreme Court has directed the companies to pay only 12 months' consolidated salary as compensation.
According to the Supreme Court ruling, all those workmen who agree to shift with the industry shall be given one year's wages as shifting bonus to help them settle down at the new location.
Those unwilling to shift will be deemed retrenched with effect from November 30 after payment of compensation as per Section 25 F (b) of ID Act, 1947, one year's wages as additional compensation and gratuity.
With this ruling, the total labour compensation to be paid by the companies has gone up to Rs 200 crore.
Of the land vacated by the units, 32 per cent is to be used by the owners and the rest by the Delhi Development Authority. The owners will be entitled to a flow area ratio (FAR) of 180 per cent on this land. The FAR envisaged in the Master Plan of Delhi is 120 per cent. With the increase in FAR, labour unions say the units will save more than Rs 800 crore after paying the labour compensation.
The labour compensation is a pittance compared to the amount the companies will save with the increased floor area ratio for personal use on the existing land and the reduced compensation package as ruled by the Supreme Court, said the labour lawyer. The labour unions have already filed a petition with the Supreme Court, seeking ->