The Hindu : Philips to close down lamp facility

Online edition of India's National Newspaper
Wednesday, Dec 10, 2003

Business

Business

Philips to close down lamp facility

By Our Staff Correspondent

KOLKATA DEC. 9. Philips India has finally decided to confront the CITU leadership challenging its decision to cease operations in the lamp manufacturing facility here to reduce costs. In a press communique issued on Monday Philips blamed the `local union leaders' for indulging in gross indiscipline and restraining the local management from carrying out the day-to-day operations.

CITU has already announced a State-wide mass campaign against all kinds of Philips products in case the company stuck to its decision (to cease operations).

Stating that the decision to cease operations in the unit (formerly known as ELMI) was taken in September as "manufacturing operations at the facility were proving unviable due to a comparatively high operational cost structure'' compared to the company's other units in Chandigarh and Vadodara. Accordingly a voluntary retirement scheme was launched and out of 270 workmen 130 had already opted for the same.

"Looking at the overall interests of the company as a whole, the decision was imperative,'' the company says.

Printer friendly page
Send this article to Friends by E-Mail

Business