Hindustan Unilever and former employees of its Kodaikanal-based defunct thermometer factory today announced the signing of a settlement encompassing ex-gratia payout to 591 ex-staffers.
The Memorandum of Settlement reached was recorded in an order passed by the Madras High Court, Hindustan Unilever said in a statement. The agreement was signed on March 4, in the presence of representatives of former workers and HUL.
The settlement was between Hindustan Unilever and Pond's HLL ex-Mercury Employees Welfare Association, representing the ex-employees of the now defunct thermometer factory in Kodaikanal.
As part of the agreement, HUL has agreed to provide ex-gratia payments to 591 former workers/association members and their families towards livelihood enhancement projects and skill enhancement programmes.
The development comes against the background of sustained protests by former employees including the one held by them in Mumbai last year.
They staged a protest at the company's headquarters in Andheri, Mumbai, when the Annual General Meeting with shareholders was held.
"The former employees have confirmed this as a full and final settlement of all their claims and demands. They will withdraw the petition they had filed in February 2006 in the Madras High Court," the company said.
"The settlement has been entered into on humanitarian considerations to put an end to this long standing matter pending in the Court for several years and also is in keeping with the suggestion of the Madras High Court," the release said.
The former workers of the factory had filed a petition in the Madras High Court in 2006 seeking economic rehabilitation. "This petition was filed more than four years after HUL had made a full and final settlement in November 2001."
Executive Director - Legal and Corporate Affairs, HUL Dev Bajpai said, "we have worked hard over many years to address this (issue) and find the right solution for our former workers. We, alongside all involved, are glad to see an outcome to this long-standing case."
President, Pond's HLL ex-Mercury Employees Welfare Association, SA Mahindra Babu said,"we are pleased with all the terms of the agreement which will help to ensure the long-term health and well-being of the factory's former workers.
