B K Birla-promoted Kesoram Industries declared a suspension of work at Kesoram Rayon, the viscose filament yarn and transparent paper making division of the company at Tribeni, near Kolkata, from 6 am today.
In its annual report, the management had admitted that "suspension might be the best alternative with no improvements of labour situation".
Observers are of the opinion that the unit could be an addition to the state's endless list of closed units.
The textiles division of Kesoram has not yet resumed operations in two years, when a notice of suspension of work was posted on the mill gate. The division was spun off as a separate entity later.
Company officials said the suspension of work in Kesoram Rayon was declared "in view of the gross act of violations of the substituting settlement and indulgent in wasteful practices with deliberate and unreasonable striking of work and thereby disturbing the entire operations by workmen".
Labour relations had been strained in the division for quite some time now. The company, in a press conference, had accused the AITUC-affiliated labour union with creating non-congenial atmosphere in the workplace.
A national CPI leader, who was formerly a member of Rajya Sabha retaliated in no time by blaming the company management for spoiling the working condition in the division.
The unit last year produced 6,864 tonne of viscose filament yarn, as opposed to 6016 tonne in 1999-2000, supported by aggressive distribution and marketing strategies.
The production of transparent paper increased to 2,755 tonne in 2000-01 from 1,700 tonne in 1999-2000.
However, operating margin suffered due to lower realisation, increased costs and fixed overheads of cellophane paper plant.
