The state government on Wednesday decided to take over the Vaigai Thread Processors Limited at Koratty, which remained closed since January 2013 following labour dispute, along with all the infrastructure facilities extended to it. The decision was taken at a meeting, held in Thiruvanthapuram, between Chief Minister Oommen Chandy, Revenue Minister Adoor Prakash, union leaders and company officials on the long drawn labour dispute in the company.
The state government decided to take over 30.5 acres land, which was given to the company on lease agreement to operate the company here, and other infrastructure facilities attached to it, Thrissur district collector M S Jaya told ‘Express’. The company official in turn demanded the government to give them a compensation of Rs 3.5 cr for the buildings and other paraphernalia they constructed on the leased land.
To which, the government responded that it need some time to look into the demand. Besides, the company representatives have also been directed to give all the pending benefits, gratuity, compensation as per the labour rules and other perks related to the time of retreat to the employees in a time bound manner, said Jaya. The striking employees at the Vaigai Thread also expressed happiness over the outcome of talks on the long-drawn labour dispute in the company. They have been on a warpath for that past six months against the company remaining closed indefinitely without giving any befits to them. “We welcome the decision as we are already aware of the fact that the company had decided to wind up its operation here. With the intervention of the government, the company has now been instructed to give an additional compensation of Rs 25,000 to the employees besides the legally stipulated compensation and all other benefits,” said Kishore, convener of the joint committee of the employees’ associations.
The workers, who have been protesting against the unit remain closed since January 22, want the company here to be re-opened and their salaries to be revised at the earliest or if the company is obstinate that it would wind up the operations here the workers should also be given proper compensation as per the labour rules. The workers here reportedly have been getting only benefits stipulated in a labour agreement formed on February 14, 1988, which is very low in the present scenario, the union leaders said. The Vaigai Thread Processors, formerly J&P Coats, was started on 98 acres of land given on a 99-year lease by the state government in 1952. In 1980, the company merged with Madura Coats Limited and the company was declared lock-out in February 1993 and did not work for next five years.