Southern States - Kerala

No end in sight to KSO woes

By Our Staff Reporter

KOZHIKODE APRIL 18. Will the Enterprises Reforms Committee (ERC), set up with the objective of revamping Public Sector Units (PSUs) in the State, bring a breather for the Kerala Soaps and Oils? This seems to be the united refrain of trade union activists here.

Any package for the revival of the public sector unit has proved to be elusive so far. The continuing uncertainty over the fate of the Kozhikode-based soap manufacturing factory which has been under closure has had a demoralising impact on trade union circles here, leave alone the helplessness to which the 239 employees have been driven to following non-payment of salary for over seven months.

On Vishu eve, trade union activists and employees under the banner of the KSO Samyuktha Samara Samithy had organised a hunger strike at the Kidson Corner to highlight their plight, as well as that of one of the oldest and prestigious public sector units not only in Malabar but in the State as well.

The CITU leader, Mambetta Sreedharan, says that the union leaders had met the Industries Minister, K. Kunhalikutty, during his visit to Kozhikode recently, but had failed to get any positive commitment from him on the future of the company.

He alleged that the Government was adopting delaying tactics to escalate the situation further so that the workers would have no other option than to succumb to accepting whatever proposal that was placed before them by the authorities.

There were 239 workers on the rolls while 67 were on deputation to other units. Any retrenchment package would be adverse to the employees as the maximum an employee could get would be Rs. 2 to Rs. 3 lakhs, and a minimum of Rs. one lakh.

Only a total revamp package can put the KSO back on rails as the unit lacks economic viability, aver the INTUC leader, K.C. Ramachandran. He suggested a platform for discussion comprising trade union leaders and others before any revival package was instituted so that a collective viewpoint emerged.

In the case of the KSO, the method of diversion of funds from other PSUs as has been done earlier will not work any longer. The receipts due to the KSO such as from the Kerala State Industrial Development Corporation (KSIDC) ought to be made use of in a positive way.

More than all these, what was most unfortunate was that its products were well-accepted and of a high quality. Lack of effective marketing has had its pitfalls, especially when soap products operated in a highly competitive market.

Mr. Ramachandran was of the view that upgradation of technology at the unit should be carried out in a phased manner. What was also needed was employees' initiative in the revival operation besides a team of dynamic personnel to carry it out.

The INTUC State secretary, M. Rajan, concurs with the view that there was no point in introducing short-term measures such as raising loans, which sufficed only for salary payment and other expenses. Any new package ought to bring with it revival and continuation of the unit.

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