Bench rejects Oswal8217;s plea

Earlier, Justice N J Pandya on March 8 had upheld an Industrial Court order saying the lockout declared at the company premises at Chembur was illegal. The company had been directed to lift the lockout and pay wages to the workers and staffers along with arrears. The over 500 strong workmen have not been paid since December 1998. This order had been stayed for filing of the subsequent appeal in front of the bench of the Chief Justice. Subsequently the company appealed against the order. Now, it will have to provide work to its work force, and if it fails to do so, it will still have topay workers.

The dismissal comes as a victory for the Oswal Petrochemicals workers, who have been waging a silent war against the company8217;s lock-out since October 1998. Located at Chembur, the company is a unit of Oswal Agro Mills Ltd, and was given a lockout notice on December 16. However, the company which was formerly owned by Union Carbide and taken over by Oswal Agro Mills OAML in 1989 shut shop in September 1998, ostensibly to carry out maintenance work. The plant was producing 20,000 tonnes of low density polyethylene.

The management then declared a lockout from December 16, claiming that the unit was unviable since it was suffering a loss of Rs one crore per month. Workers were offered a 50 per cent cut in salaries till the time the company could resume making profits. They were also told to forego canteen and transport facilities, or take Voluntary Retirement Scheme.

The Oswal Petrochemicals Employees Union and Oswal Petrochemicals Staffers Association challenged that a lockout can bedeclared only on the grounds of labour violence or any unfair labour practice and not a financial crisis.