ACC-Nihon Castings Ltd declares lock-out

NAGPUR, FEB 24: ACC-Nihon Castings Ltd, a subsidiary of the Associated Cement Companies ACC has served lock-out notice following illega...

NAGPUR, FEB 24: ACC-Nihon Castings Ltd, a subsidiary of the Associated Cement Companies ACC has served lock-out notice following illegal8217; activities of the workers. The lock-out will be effective from March 7.

The ACC group of companies set up three units on 100 acre land at the Butibori Industrial Estate near here. The units are: ACC-Nihon Castings Ltd ANCL, ACC Refractories and ACC Machinery Company Limited AMCL.

ANCL is one of the first units to start operations way back in 1994.

quot;The group invested Rs 26 crore in the ANCL to start the operations. It was a smooth sailing unit initially. But it started incurring losses as recession hit the industry. The problems compounded when the workers union, under new leadership, recently handed over a list of 27 demands, including a massive hike about 324 per cent in the salary,quot; said one of the company officials.

Since the company was not in a position to meet the demands, the management urged the representatives to hold back their demands for about an year. But the representatives served a strike notice, the officials said, adding that the workers started began to indulge in illegal and unlawful activities in a bid to force the company to succumb to their demands.

quot;Since February 1, the leaders started issuing threats to the officers and contractors. They did not allow contract workers to report to work and even stopped transportation of semi-finished goods to be sent out for finishing. Some of the workers forcibly entered the administration building and pasted the notice on office notice8217; board,quot; the officials said.

Under these circumstances, the management found it impossible to conduct its business and therefore decided to suspend the operations8217; with effect from February 21. Simultaneously, the company also declared a lock-out which will come into effect from March 7, at 7 am the officials said.

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Speaking to the The Indian Express, Pramod Pratap Singh, a workers8217; representative said quot;the old union representatives had entered into a wage agreement in 1996, which expired on December 31, 1999. As per the norms, the new union was formed,quot; he said, and added that quot;the management told us to list demands for the new agreement.quot;

quot;Accordingly, the union presented a charter of demands including salary hike as per government rules. We were expecting an invitation for discussions over the demands by the management but not a single meeting was held after the presentation of demands,quot; he added.

After waiting for seven days, the union served a warning notice8217; on January 17. Reacting to this, the management issued pamphlets stating that quot;due to dire financial health, the company is not in a position to give salary hike.quot;

Following this, the union had no other option but to serve a strike notice, he added. quot;However, as per the advise of Devendra Phadnavis, MLA, and former Mayor we suspended the strike in order to give a chance to the management to hold the discussions,quot; Singh said.

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Surprisingly, the management, instead of looking into the workers problems served a lock-out notice, he added.

quot;We are still ready to hold talks with the management but if they are not willing to talk to us, we would move the court,quot; he added.

Meanwhile, the union leaders of AMCL have also served a strike notice from February 28.