UP to probe the closure of Sterling Machine Tools

The Uttar Pradesh government may order a probe into the closure of two units of Sterling Machine Tools, an ISO certified generator and diesel-engine manufacturing company of Agra. The units were shut down, citing financial problems and internal disputes as the reason for closure.

Talking to Business Standard, Ganga Prasad Pushkar, a minister in the UP government, said he had talks with the employees of the company, who had been staging a dharna at the factory gates, and from the employees' accounts, it is clear the factory was running in profit and production had been deliberately stopped in both the units by the company management since January this year to create an impression of the company running at a loss.

He said he would talk to UP Chief Minister Mulayam Singh Yadav on this matter and a probe into the reasons for the closure of this firm could be ordered by the chief minister to protect the interests of the 350 employees and over 5,000 people indirectly associated with the company.

On the other hand, the Centre for Indian Trade Union (CITU) leaders indicated contrary to the claims made by the company management, the closure of these units attracted the provisions of the Industrial Disputes Act, 1947, as there were more than 300 employees working in these units but the management was saving itself by displaying both units as separate companies.

The leaders said CITU was taking up the employees' cause for their sake and would not rest until the factories were restarted, as there had not been any loss to the company and it was only being shut down due to an internal dispute in this family-run business.

Notably, Sterling Machine Tools had been manufacturing the reputed "Bharat" brand of diesel generators and engines for over 20 years, but due to some dispute in the management, both the manufacturing units of the company had been shut down on April 18, with the settlement of the employees' accounts but the employees had refused to accept the closure of the company and are continually holding demonstrations to get the factory reopened.