HIWL Unions lingering impasse by refusing Arrear Acceptance (PRESS RELEASE)

PRESS RELEASE

Kolkata, March 19, 2008:

In the context of some recent reports on the disturbed industrial relations at the Hirakud Industrial Works Ltd, Sambalpur, Orissa, the management of the Company would like to place the following facts before you.

Following a meeting chaired by the Industries Minister Mr Bishwabhusan Harichandan on 8 January 2008, Mr Ashok Meena, Managing Director, IDCOL, on 2 February 2008, advised HIWL management to pay 4 months (August 2007 to November 2007) arrear salaries immediately. Govt of Orissa had deputed P K Patnaik, Collector & District Magistrate of Sambalpur, to coordinate and facilitate the settlement, i.e. payment to the workers and reopening of the works. Accordingly on 4 February, HIWL management reported to him and camped at Sambalpur till 6 February to facilitate the payments.

However, the Union representatives refused the payment declining the terms advised by Mr Meena, MD of IDCOL, and demanded much higher a sum, which were neither supported by relevant documents nor validated by either IDCOL or the HIWL management. On its part the HIWL management, after several deliberations with the Union leaders, tried to break the impasse and made arrangement for facilitating the payments again on 14 & 15 March 2008. Once again the Union leaders did not meet the HIWL authorities on the designated days and the impasse continues.

While reaffirming its commitment to put an end to the sufferings of the hapless workers of HIWL, the new management would like to appeal to the Union leaders and the workers to accept the payments as warranted in the follow-up meeting chaired by the MD of IDCOL and co-operate with the management in the process of resumption of operation in the plant.

In this context, it may be recalled that:

1) Management control of HIWL was taken over by the present promoters in July 2006

2) Pre-takeover dues in respect of current Employees’ Salaries etc., have been paid in full and in conformity with the Memorandum of Settlement dated 2 June 2006 entered into between the Management & the Workmen, until July 2007 other than PF & incremental Gratuity Funding, which is under discussions with the respective appropriate authorities.

3) All dues in respect of VRS/VSS & Deceased employees have been duly paid, other than those employees who have not vacated the Company-owned accommodation. The payout thus made amounts to 93%.

4) Till February 2007 payment of monthly salaries was made on due dates.

5) In April 2007 the Company officials from its Head Quarter, Kolkata were prevented from accessing statutory records at Hirakud Factory. Consequently verification of PF, ESI, CST, OST, OET, Contractors and sub-contractors liabilities and its real value ascertainment was made impossible, thereby disabling Management in its day-to-day business which inter alia resulted in delayed payment of Salaries for the months of March, April and July 2007.

6) In order to facilitate uninterrupted verification of records, in early April 2007, Management decided to temporarily relocate the records (other than Statutory Records) to Head Office, Kolkata and was prevented in doing so by the Union(s). The Union(s) took charge of the records and put it under lock & key thereby denying free access of the Management to such records. Union(s) also resorted to agitation within the factory premises and its precincts during working hours resulting in stoppage of production. Union(s) also prevented free ingress and egress of willing employees and entry of raw materials into the factory.

The above report was sent by Mr Debashis Bhattacharya (HIWL Management). Let us know if you need further clarifications.