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Various Unions representing 17,500 workers at Neyveli Lignite Corporation (NLC) have decided to issue indefinite strike notice to the management on Monday.
The decision comes in response to Government of India's decision to dilute 5% stake in the Corporation. Meanwhile, Tamil Nadu Government has asked the Centre to reconsider its decision.
The decision comes in response to Government of India's decision to dilute 5% stake in the Corporation. Meanwhile, Tamil Nadu Government has asked the Centre to reconsider its decision.
Rama.Udayakumar, secretary, Anna Workers & Staff Union, which belongs to the ruling AIADMK Government in Tamil Nadu, said that representatives from 12 different Unions at NLC held discussion on Sunday and it was decided to issue strike notice at 3 p.m tomorrow and it will be a 15 days notice.
NLC's top management was not available for comment immediately.
The other major Unions participated in today's meeting including DMK's, which was a key partner of Congress government, CITU, PMK, LLF and others. Several members of these Unions have also confirmed the decision.
These unions, representing around 17,500 workers in NLC, have said they would force a shut-down of operations to prevent the inclusion of private investors in the ownership of the company, as it would lead to job losses and erosion of worker rights in the company, a trade union leader said.
The Unions did not accept Government stand that the basic ownership structure, which saw government being the single largest shareholder, with a 93.5 % stake, would change only marginally following the offloading of five % of equity to private investors.
Udayakumar said “today the stake sale is five %, if we leave it step by step it will go upto 43 %, we will loose our allowance, rights, jobs and everything. We dont want this to happen”.
S Rajavannian, general secretary of NLC Labour Progressive Federation, affiliated to DMK, said that the company has so far given out Rs 2000 crore as dividend. For instance in 2011-12 alone the dividend was Rs 470 crore and in 2012-13, it is expected to be around Rs 500 crore.
“The company has been profitable from 1977 and compared to the dividend it gives yearly, the sales of 5 % would only fetch around Rs 466 crore,” he said. The Federation would be holding strong protest against the issue and also would look at agitations if the government goes on with its decision, he said.
Meanwhile, Tamil Nadu Government has once again the asked the Centre to reconsider its decision to dilute five % stake in the Neyveli Lignite Corporation. In a letter to the Prime Minister today Tamil Nadu Chief Minister J Jayalalithaa said the future should not judge the Central Government as having sold family jewels at throwaway prices.
It may be noted two previous attempts to divest NLC shares to private investors, in 2002 and 2006, had to be aborted due to the pressure from trade unions and from the State Government.
“It is with a deep sense of disappointment and dismay that I took note of your letter dated June 8, 2013, and the recent approval of the Cabinet Committee on Economic Affairs (CCEA) for the disinvestment of 5 percent of NLC’s shares. This is yet another instance in which the Central Government has ridden rough shod over the very legitimate and genuine concerns of the people of Tamil Nadu,” said the Chief Minister.
She noted, in her letter dated May 23, 2013, not only outlined the negative fallout of the decision to disinvest in NLC but had also offered two very feasible alternatives to overcome an artificially created regulatory crisis.
She added, the Government of India appears to have placed the immediate possibility of raising just Rs 466 crore by the sale of shares, above the aspirations of the people of Tamil Nadu to maintain intact the public sector character of NLC without any dilution.
The State administrator also questioned the timing of the decision on the back drop of fall in the share markets and whether the true value of the shares of a profitable Navaratna Public Sector Enterprise will be realised by the Government of India.
The NLC disinvestment issue should not be seen merely from the point of view of complying with the SEBI rules/guidelines or with sending out market signals. Rather, the wider ramifications must be kept note of. “Hence, I hope that you will reconsider the matter in the light of the options I had already suggested in my earlier letter to avoid the proposed disinvestment in NLC,” she said.
