Pepsi unit loses fizz in Punjab

Troubled with labour problems for the past four months, FritoLay India, a unit of PepsiCo India Holdings Ltd...

Troubled with labour problems for the past four months, FritoLay India, a unit of PepsiCo India Holdings Ltd, is now planning to shift its production base from Punjab to its other locations in Kolkata and Pune. It had shut down its industrial production earlier this month.

While the company management has denied shifting out from Punjab, it has already shifted its production base from the state and moved out all its employees from the factory premises, which is locked since August 20. The current stand-off took a violent turn when on August 23 a few workers agitating outside the unit sustained injuries following a clash with the local truck union workers.

On Tuesday, the workers along with the Bharatiya Kisan Union, blocked for four hours vehicular traffic on the busy Sangrur-Patiala state highway. They were demanding the withdrawal of termination order of their union president Sanjeev Kumar and suspension of 12 fellow workers.

Set up in 1989 and producing ‘Kurkure’ and ‘Lays’ chips, the shifting of the production base has also come as a major blow to potato growers in the state. The unit utilised over 120 tonnes of potatoes every day and over 1,500 farmers from neaby areas benefited from the unit.

The indefinite lock-out at the unit has also hit industrial sentiment in the state, which is down across the country in the backdrop of problems Tatas are facing at their Singur plant.

The problem at Channo, however, is different. FritoLay India management alleges that the workers have been on a go-slow approach and production line has been on the decline by 70 to 80 per cent during the past four months, when labour trouble first brewed in the plant.

In May this year, the workers planned a strong workers’ union and its new president, Kumar, claims to have asked for some hygienic uniform for the 250-odd casual workers in the factory, besides some other amenities. This, he alleges, led to his suspension in May this year and later his termination.

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The management instead charges him of being the trouble-maker and is not in any mood to accept him back, though Sangrur MP Sukhdev Singh Dhindsa and the Sangrur district administration are working overtime to bring about a settlement at the unit.

With the workers at the unit not ready to budge till Kumar is also taken back, the talks between the management and the workers have failed.

MP Dhindsa on his part says, “Efforts are on to bring about a settlement and we are hopeful it will soon be reached. We are not wanting the company to move out of Punjab anyway. We are in talks with both parties and the management has agreed to revoke suspensions of all 12 employees. I am also pushing for taking back the terminated employee, which can happen only after some time.”