Money, mindset stand between Marx and market

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However, according to sources in the state’s commerce and industries department, the CM’s plan has run into a major roadblock that may delay the entire process. The funds required for paying the workers who are to be laid off are just not there.

‘‘And this may prove to be a difficult hurdle to cross,’’ says a senior official, who didn’t wish to be named. The perpetually loss-making units with over 5000 workers have outstanding liabilities running into crores of rupees, he said.

‘‘For some units, the financial situation is so tight that we don’t know how to go about it. If we have to give the workers their dues first and then close down the unit, we simply don’t have the money. Even selling off the assets of these units would not fetch enough funds for the settlement with the workers,’’ said the official of the commerce and industries department.

CITU general secretary Chittabrata Mazumdar agrees with the CM that ‘‘these perpetually sick units cannot continue in public interest.’’ But what the CITU is insisting on is a thorough dialogue with the trade unions before the unit is actually closed down. ‘‘Otherwise there will be a problem from our side,’’ he warns.

In a role reversal, the INTUC now plans to launch a stir against the state government initiative. ‘‘They are talking about disinvestment and an early retirement scheme in the state when they are opposing these in Parliament,’’ says Pramathes Sen, state secretary of INTUC. Accepting the fact that it’s difficult to run huge loss-making units, Sen says ‘‘at least one would expect the worker-friendly Marxist government to spell out the terms and conditions for laying off the workers.’’

All formalities have been worked out by the standing committee on sick units and the funds are now the only hitch. The following are some of the recommendations of the committee:

• Physical assets of the units identified as ‘‘structurally unviable enterprises’’ will be transferred along with the services of the employees to an asset management committee (AMC) to be formed.

• The AMC will try to redploy the employees in government establishments, coordinate self-employment counselling, facilitate loans from financial institutions provided that during retention of their services with the AMC, their remuneration will remain frozen at the level of the last pay drawn; and if no redeployment becomes possible within a definite time-frame, the employees would be required to opt for an early retirement scheme.

• An early retirement scheme will be offered to employees who don’t choose the option of being transferred to the AMC.