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Saturday, November 28, 1998

Oswal employees try to stave off closure, golden handshake

EXPRESS NEWS SERVICE  
MUMBAI, Nov 27: Sure closure stares employees of Oswal Petrochemicals in the eye. The Chembur plant which has been closed since October, ostensibly for repairs, has not yet been reopened. Instead, the management is talking with the workers for a voluntary retirement scheme package while at the same time forcing staffers to resign or be transferred.

Around 17 staffers have been mass transferred with a single notice put up on the board on November 24.

Staffers, who only yesterday formed the Oswal Petrochem Staff Association, are critical of a management which saw it fit to talk to workers about a retirement scheme without chalking out a compensation package. ``What have we done to receive such a treatment?'' asks an official. None of the employees, among the present staffers have taken their transfer letters and the union plans to go to court against the company.

``This is an illegal closure. No notices were given, on the contrary mass transfers are being effected,'' said an official. If the staffers arewary of being identified in their fight against the management, the latter seems to be fighting shy of facing the media. Repeated attempts by this newspaper since Monday to talk to the vice president (operations) M D Ronghe have been futile. He seemed to be out most of the time.

A call at his residence was cut short when a male voice put this reporter over to another female voice, who said Ronghe had gone out and wasn't sure when he would return. A visit to the plant today was also futile as security guards said Ronghe and ``everybody'' had gone out.

Even today, when the newly formed union sent a letter through its lawyer, Ronghe allegedly refused to take it. The company fearing that individual officers would take legal action against the transfer orders have obtained a caveat in the labour court.

Oswal Agro Mills had taken over the Union Carbide plant at Chembur in 1989 in an acclaimed ``marriage between agro and petro''. The plant had a capacity of 20,000 tonnes per year production for low densitypolyethylene (ldpe) used for manufacturing of plastic bags and having an almost monopoly in the manufacture of wire and cables. ``Of course, the recession in the economy has affected the sales with prices of ldpe falling, but the company was making profits,'' said an official.

After the plant was shut down allegedly for repairs, the director of the plant, Pankaj Oswal, had even announced that repairs were being undertaken at a cost of Rs 11 crore. Sources say annual reports of Oswal Agro Mills of which Oswal Petrochemicals is a division showed profits around Rs 36 crore for 1997-98 and unaudited half yearly results for this year showed profits of around Rs 26 crore.

The Chembur plant was suddenly shut off after nine years of continuous activity on September 19. On October 27, the management changed the decision to a closure and allegedly coerced non unionised clerical staff to resign.

Those who refused to were forcibly transferred to its plant in Paradeep, Orissa, say sources. Among the staffers, thosewho joined the plant after the takeover by Oswal Agro Mills, have apparently accepted resignation. But the erstwhile employees of UCIL, who have been with the company for more than 30 years are putting up a fight. Signals of an impending closure were seen a few years back when contract workers were employed for regular activities. No new recruitments were made.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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