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‘Unions to blame for HIWL impasse’

Staff Reporter

BHUBANESWAR: After more than three months of intense agitation by employees of Hirakud Industrial Works Limited (HIWL) demanding cancellation of Share Purchase Agreement on disinvestment, the Kolkata-based Ruia Group on Thursday charged the labour unions with lingering the impasse by refusing arrears acceptance.

Varsha Fabrics, a Ruia Group company, had won the race for acquisition of HIWL, a State-run public sector unit under Industrial Development Corporation of Orissa Limited (IDCOL), at an estimated cost of over Rs. 5 crores. However, labour unions were not happy with the takeover by the Ruias.

Unions’ contention

They alleged that the Kolkata-based company was not respecting the agreement it made with the State government after taking over the public sector unit. The employees sat on a strike for more than a month during the current budget session.

“Following a meeting chaired by Industries Minister Bishwabhusan Harichandan on January 8, Ashok Meena, Managing Director of IDCOL, on February 2 advised HIWL management to pay four months (August 2007 to November 2007) arrear salaries immediately,” Debashish Bhattacharya, General Manager (corporate communications) of Ruia Group said in a statement.

He alleged the union representatives refused to accept the payment declining the terms advised by Mr. Meena and demanded a much higher a sum, which was neither supported by relevant documents nor validated by either IDCOL or the HIWL management.

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