In an attempt to placate ally DMK and dissuade employees of Neyveli Lignite Corporation from striking work over the Government’s decision to sell 10 per cent of its stake in the company, Prime Minister Manmohan Singh today announced that the disinvestment would provide for allocation of shares on a preferential basis to employees.But the Federation of Unions of NLC Employees, including the DMK-affiliated Labourers’ Progressive Federation, said “the Prime Minister’s offer is unacceptable.”“Accepting it would amount to agreeing to the principle of disinvestment. It would be a sort of privatization as workers would eventually sell their shares to private parties,” LPF general secretary Raja Vanniyan told The Indian Express. Resolutions to this effect were passed by the trade unions after a day-long hunger strike.Following the Government’s decision last month to divest 10 per cent in Nalco and Neyveli Lignite, Tamil Nadu Chief Minister Karunanidhi had written to the Prime Minister, warning that it “may be construed” as a deviation from the Common Minimum Programme “whatever reasons we may give.”Karunanidhi had also said that DMK-affiliated unions would join hands with Neyveli Lignite employees who plan to strike work from tomorrow in protest againt the Centre’s decision. Left parties have already opposed the moves on Neyveli Lignite and Nalco.In a statement released this evening, the Prime Minister’s Office acknowledged the request from the Tamil Nadu Chief Minister. “The Prime Minister has assured that while disinvesting 10 per cent of the shares of Neyveli Liginite Corporation, the Government will provide for sufficient allocation of shares to the employees, as desired by them, on a preferential basis so that they have a stake in the future of the corporation,” stated the PMO release.While the statement clearly indicates that employees will be allotted shares so as to ensure their interests are aligned with the company, it also implies that the share allocations for employees may be made from within the ten per cent stake to be offloaded. This would mean that the Government’s stake will not be further diluted from the 83.56 per cent stake it would hold after the ten per cent sale.The Government hopes to raise Rs 1100 crore from the sale. Karunanidhi had proposed that if the Centre can’t revoke its decision, the shares could be sold to the employees alone.
