The labour unions today claimed that Vedanta Sesa Goa management had told them it will have to resort to 'no-work-no-pay' policy if transportation of iron ore from the state did not resume by next week.
The company had to cancel a shipment to China this week after some truck owners went on strike seeking higher rates.
"The management told us the current crisis created by some truck owners has stopped the transportation of iron ore resulting in cancellation of a shipment. The company will have to resort to no-work-no-pay from December 15 if transportation doesn't resume", said Devanand Parab, president, Sesa Goa Workers Union.
The union members held a meeting with the company management here today.
"The management also told us that the salary liabilities were met by procuring loans from the banks. But now because of the low export price of ore even banks have refused to extend loans", Parab said.
Vedanta Sesa was the first company to announce resumption of mining in Goa after the Supreme Court lifted its three years old ban on mining in the state.
"We had planned 1 million metric tonnes of export for December. The first shipment of 88,000 metric tonnes was sent to China. But the second shipment, planned to leave on December 8 was postponed to December 12 and since the transportation has stopped, we will have to cancel it", said a senior company official on the condition of anonymity.
He said the company had signed agreement with 600 truck owners to transport the ore from mining sites, but the truck owners are afraid to operate following a recent incident where a truck was set on fire by miscreants.
"The company has told us it will have to stop the mining if this situation continues. We will inform the workers. We will have to call a meeting and decide our course of action," said Raju Mangeshkar, leader All India Trade Union Congress (AITUC) who participated in the meeting today.
