Mavoor Rayons wound up

By Our Special Correspondent

THIRUVANANTHAPURAM, JULY 7. The largest private sector industrial unit in the State, the Birla Group's Gwalior Rayons factory at Mavoor, has been wound up.

The terms relating to the closure of the factory were finalised at a meeting of the management and the trade unions here today. The meeting was convened by the Labour Minister, Mr. Babu Divakaran.

Both parties have agreed that the company would be deemed to have been wound up with effect from June 30, 2001. The factory had suspended production on May 10, 1999, following pollution- related controversies.

As many as 1,300 workers and 300 officers were under the rolls of the company. The employees coming under the purview of the agreement will get 40 days' wages for every year of service completed as well as every year of service remaining. In addition, they will be given a special pay of Rs. 27,500 each. The employees would get these payments before July 23, 2001.

There were 16 trainees and probationers in the company. They would be given a total compensation of Rs. 1 lakh.

Employees retiring between July and December this year would get ex gratia payment of Rs. 10,000 each (in addition to the usual compensation). All employees would be given Rs. 1,000 each as `uniform and footwear allowance'.

This year's bonus has been fixed at the minimum rate of 8.33 per cent. The bonus will be paid before July 31. The company will disburse the provident fund and gratuity payable to the employees.

Employees whose children are studying in nearby schools will be allowed to occupy their company quarters till the end of this academic year. The school managed by the company on its campus will be run till the end of this academic year by the Parents' and Teachers' Association (PTA) at the school. To defray the expenses of running the school, the company management will pay the PTA an allowance of Rs. 200 for each student.

Employees using the company quarters beyond March 31, 2002 will be charged a rent of Rs. 1,500 each.

As per the agreement, all court cases relating to the suspension of production at the factory will be withdrawn by the trade unions as well as the management. Cases involving disputed age certificates of some of the employees will, however, continue.

After suspension of production in May, 1999, the management had submitted a closure application to the Government on August 23, 1999, under section 25(O) of the Industrial Disputes Act. The reason cited was `raw material shortage'.

The State Government had rejected the petition as well as a review petition filed subsequently by the management. The Government had then referred the issue of the closure of the company to the Industrial Tribunal in Kozhikode. This case, as well as a case filed by the trade unions in Indore court, will be withdrawn by the parties concerned, as per the agreement.

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