KOCHI: At a time when Kerala is trying its best to attract investments and go up the ease-of-doing-business rankings, Synthite Industries Ltd, the world's largest value-added spices company headquartered in Kochi, on Tuesday threatened to pull out all its investments from the state.
The reason: a labour strike by a group of employees with the support of the CPM-affiliated CITU, disrupting the functioning of the company; a first in its 46-year history.
Synthite, which employs over 600 people and has a turnover of over Rs 1,500 crore, had never faced any labour unrest since its inception in 1972. "The management and the employees have been working closely for years as a family and the company was always looked up to as an outstanding example when it comes to industries and investments in Kerala," said Viju Jacob, managing director, Synthite Industries.
A company official said in December last year, the CITU registered its union in the company, becoming the first trade union in the company. "We transferred some workers out of Kerala, including seven employees who belong to the trade union," said a company official.
"The trade union was formed against the wishes of 75 per cent of the employees who were against political intervention and the political union," said Viju.
The company exports almost 50 per cent of the world's requirement of spice oils and oleoresins from India, contributing a major share to the Indian economy. "As the union affiliated to CITU is protesting for undue benefits, it is becoming increasingly difficult for the company to move forward. If the situation is not amicably resolved, the management will be forced to move its operations to its existing facilities outside Kerala leading to a lockout at Kadayiruppu facilities which is likely to affect the livelihood of more than 600 families who are dependent on the company, as well as revenue loss to Kerala," he said.