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This is an archive article published on July 19, 2009

Management case against factory staff boomerangs

A case lodged by the Theur-based Yashwant Cooperative Sugar Factory against its employees’ union in Pune Industrial Court has boomeranged...

A case lodged by the Theur-based Yashwant Cooperative Sugar Factory against its employees’ union in Pune Industrial Court has boomeranged,when the judge not only dismissed the factory’s claims but also ordered the management to cough up Rs 2 crore to clear the six-month pending wages of around 800 employees.

The factory management had filed a case against its employees’ union after the staff stalled the delivery of ethanol. Union counsel Santosh Mhaske said the delivery was stopped because the company had not paid them wages for six months.

“The ethanol,which we did not allow to be delivered,was sold for Rs 5 crore and we demanded that the money should be used for our wages,” said union president Tatyasaheb Kale.

The order passed by Judge Shrikant Deshpande on June 15 said “the pleadings regarding obstruction of vehicles appear to be vague and not supported with any documents”. It also directed the factory to pay the unpaid salary of the employees.

However,the judgment has brought only partial relief to employees as only two months’ wages have been paid. Balasaheb Bandhale,a junior clerk at the factory,had to borrow nearly Rs 40,000 from family and friends. “It’s a difficult time. I have two school-going children. We needed money for admission and house repairs.”

Kale said the factory management is yet to spend Rs 3.5 crore more on paying wages for April,May and June. He said the union is now planning to keep track of all payments to the factory.

Advocate Ashok Gupte,counsel for the management,said the factory had to pay dues to sugarcane growers also. “As it was important to spend the income of Rs 5 crore for all the three stakeholders,the factory management had agreed to pay the wages in proportion to the employees.”


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