PALAKKAD: Varun Beverages Ltd, the franchisee which was running the Pepsi plant at Kanjikode, has announced that it will close down the plant after three months. A notice pasted on the main gate of the factory on Tuesday stated that the company, manufacturing carbonated soft drinks and packaged drinking water, intends to close down the plant under Section 25-O of the Industrial Disputes Act, 1947 (Act 14 of 1947) and that the necessary application has been filed with the Government.of Kerala on September 22, stating clearly the reasons for the intended closure of the undertaking. A copy of the application has been sent to the Centre as well.
The closure will come into effect on completion of 90 days from September 22. The notice also stated that all affected employees shall be paid their respective dues/compensation in accordance with the provisions of Section 25-O (8) of the Industrial Disputes Act of 1947. The notice pasted at the main gate is for the information of all 112 permanent employees.
The factory had declared a lockout on March 22. The reasons cited by the management at that time include: a section of the contract workers were not allowing any workers inside the unit; though police protection had been given by the High Court, the contractor was unable to provide the service of willing workers; and the permanent employees who were operating the production line were also on strike.
Apart from the 112 permanent workers, the plant employs around 240 contract workers, who will all lose their jobs.
S B Raju, state committee member of the CITU, said the state government had decided to slash the prices of packaged drinking water from `20 per bottle to `13, which might be the reason for the management decision to not operate the plant.