KOCHI: In a setback to the Kerala government’s attempt to improve the investment climate in the state, National Paints, one of the leading paints manufacturers in the Middle East, is facing labour strife at its factory in Angamaly, Ernakulam -- the Sharjah-headquartered company’s only factory in India. Government officials said they are involved in conciliation efforts between the company officials and members of CITU, who are demanding a big hike in salaries and other benefits. “The next round of talks is slated for September 28 (Tuesday). We are confident of reaching an amicable agreement,” said Ernakulam district labour officer P S Markose.
He said the management has agreed for a 42% increase in salaries over a period of three years at 14% per year. The CITU has more or less agreed to the quantum, but the union wants the management to hand out 20% hike in the first year, and 11% each in the next two years. The union was earlier demanding a 100% hike in wages.
National Paints first invested in the Kerala unit along with a local partner in 2008, but it did not work out. Later, it bought out the local partner and commenced production on its own from 2018, investing close to Rs 80 crore in the facility located in three acres, owned by the local partner earlier. The company now employs about 70 people, of whom 17 are on a contract basis while over 50 are on its rolls. The capacity of the plant is 600 kilolitres per month.
A company official told TNIE that the production and distribution from its Angamaly unit were completely disrupted in February and March due to a prolonged strike by a small section of workers, who owe allegiance to CITU. “What has really hit us during the period is that close to 100 dealers left us, as the striking workers blocked supply of the products to them. The paints sector is a business where cut-throat competition rules. The strike, coupled with the pandemic, has hit us hard,” said the official, who wished not to be named.
He said of the total of nearly 70 people, only 14-15 are affiliated with the CITU. The official said National Paints will not be looking at Kerala when it expands the business in India. “We don’t want to face a similar situation in the future. Hence, all future expansions, if any, will be outside Kerala,” another official said.
After kids’ garment maker Kitex announced no more investments in Kerala alleging repeated harassment by government officials, the LDF government has been trying to woo investors to the state. But the troubles faced by National Paints has brought the situation back to square one, according to industry watchers.
National Paints
Sharjah-headquartered firm’s only unit in India at Angamaly
Capacity 600 kl/month
Investment Rs 80 cr
Standoff and fallout
14 CITU workers disrupt work
No more future investments in Kerala
Employees: Nearly 70