Oswal workers defy transfer, lock-out

However, around 17 of the staffers transferred earlier in November continue to be stopped from entering the factory premises and have not received their salaries for the past two months. The workers union has challenged the lock-out order in court.

Meanwhile, the company has cut off the subsidies to the canteen – though canteen workers are still on the premises and staffers have to pay the market rates for food – and withdrawn the transport facilities offered to the employees.

“This is against the memorandum of understanding between Union Carbide andOswal Agro Mills,” complained a staffer.

Oswal Petrochemicals, formerly owned by Union Carbide and taken over by Oswal Agro Mills (OAML) in 1989 downed the shutters of its factory in September 1998, ostensibly for carrying out maintenance work. The plant was producing 20,000 tonnes of low density polyethylene.

Confirming the fears of the workers, the management declared a lock-out, from December 16. It claimed a loss of Rs one crore per month citing instances of a spiralling price of raw materials.

The company offered its workers a 50 per cent cut in their salaries till the time the company could start making profits. As further cost cutting measures, the workers were told to forego their canteen and transport facilities. Or the workers were offered a voluntary retirement scheme. None of which has been accepted by any worker.

“Why should we be held responsible for the management’s mistakes,” said an office bearer of the Oswal Petrochemicals Employees Union which has filed a case against thecompany, calling the lock-out order illegal. The union has claimed that a lock-out can be declared only on the grounds of labour violence or any such unfair labour practice and not a financial crisis as the company has made it out to be. The case is expected to be heard by the court on January 11.

The union has further charged that the company’s finances had been deliberately mishandled by the management to bring about a deterioration in its financial status. “Huge amounts of interest free, unsecured loans were given to various sister concerns of the company, which were ultimately declared sick concerns,” said a union source.

OAML had forwarded around Rs 36 crore to Oswal Agro Furane Ltd which was lost as OAFL has been declared a sick company. Similarly, OAML had advanced over Rs 80 crore to Oswal Chemicals & Fertilisers Ltd, again interest free and unsecured. A part of this money was invested in equity shares of OCFL which has been lost also because of the eroded share price of the company, claimed theunion.

A faxed questionnaire in this regard by Express Newsline to Abhay Oswal, the chairman and MD of OAML remains unanswered for the last seven days.

Workers of Oswal Petrochemicals, who are on a dharna outside the gates of the Chembur unit also believe the lock-out notice is a ploy to get rid of the permanent employees. They feared that the company would get in contract employees in their places.

While the lock-out has not been declared for the staffers, the Oswal Petrochemicals Staff Association has accused the management of using transfers to pressurise staffers to resign. “We have worked for 30 years in this plant in Mumbai and gained expertise in petrochemicals. How can the management transfer us to Phagwara, for its sugar unit,” asked a union office bearer, “and that too, en masse?”

The association also plans to go to court against the transfer order. “Despite the labour commissioner’s request that the company take back the transfer orders till the matter is resolved by thedepartment, the management has not yielded,” an office bearer of the association told Express Newsline.

Labour Minister Shabir Sheikh is slated to intervene in the matter on January 5.