Ailing Vyara sugar factory sheds weight,lays off over 400 staff

According to sources,the board of directors of the Vyara Sugar Factory in a meeting held on March 31had decided to lay off 400 employees with effect from April 1 because of the weak financial condition of the company.

After learning about the decision,several employees gathered outside the sugar factory on Wednesday afternoon and staged demonstration and chanted slogans against the board of directors.

On Thursday afternoon,the workers under the banner of the Surat District Bharitya Mazdoor Sangh took out a rally and handed a memorandum to Tapi District collector C M Balat. They also requested him to do the needful as the workers had not got salary of past two months. They said they were not even intimated earlier about the impending layoff.

Vyara police officials immediately rushed to the spot after learning about the rally and arrested 10 demonstrators.

Tushar Choudhary,the invitee member of the factory and Congress candidate for Bardoli constituency,said,“I am not much concerned about the issue. The sugar factory is financially weak. I have lots of other things to do and I cannot look into the day-to-day activities of the board of directors of the unit.”

Sources said the factory has 465 permanent employees besides having a number of seasonal workers.

Jitendra Gamit,a representative of the workers,who has also been laid off,said,“We have been with the factory for long and were shocked by the board’s sudden decision to lay us off.”

He said,“We haven’t received salary in the last two months. The board should have informed us about the decision at least a month ago.”

“The majority of the workers in the manufacturing and engineering department are tribals and they do not have other source of income. Mismanagements of funds by the directors of the board is responsible for this situation of the factory,” said Gamit.

Ajay Gamit,a board member of the factory,said,“We decided to lay off the workers in view of the factory’s weak financial situation. We don’t get loans from banks as the factory is a sick unit.”

He said things may improve after elections of the board of directors are held.

“We have submitted a proposal to the Surat District Co-operative Bank for a loan of Rs 15 crore for the factory but they are waiting for formation of the new body of the board,” he said.