Labour dept on industrial closure spree

MUMBAI: The Maharashtra government''s labour department machinery has been liberally giving permsision for industrial closures in Mumbai in the past few months adding to growing joblessness.
A labour department official admitted that seldom before have so many closure applications been upheld but declined to comment further.
In the past few months the labour commissioner has allowed closure of several units including Nocil Petrochemicals, Voltas Air Conditioning division at Thane, Lallubhai Amichand at Mankhurd, Goodlass Nerolac at Lower Parel and two textile units of Thackersey group at Prabhadevi; all with a large number of workers.
Most of the units had already trimmed their workforce. At the time of closure Nocil had 580 workers, Voltas AC division 161, Lallubhai 362, Goodlass 200 (down from 800 last year) and Crown 700.
Now, the foundry unit of Mukand Industries has sought permission for closure of its unit at Kurla employing 400 workers provoking trade union apprehensions that this too would shut shop.
All the units control large plots of land being eyed by the builder lobby. All India Trade Union Congress and a number of unions demonstrated outside the labour commissioner''s office on Tuesday in protest against its policy towards labour.
This is for the first time that the government has formally permitted the closure of textile units in the city. Most units have closed down without seeking government permission following ''sickness,'' disconnecting of power supply due to non-payment of electricity bills, agreement with Rashtriya Mill Mazdoor Sangh to reduce the number of workers or other causes.
With the closure of Crown mills and processing house of Thackersey group, the number of functioning textile mills in the private sector in Mumbai has come down to less than ten, according to industry sources. The mills now functioning include Century, Dawn, Simplex, Ruby, Prakash and Bombay Dyeing. Most of the surviving ones, including big names like Century, are said to be in financial difficulties.
Now Bombay Dyeing proposes to commercially develop land in its century-old Spring Mill started by Nowrosjee Wadia. It has already begun negotiations with the sole recognised union in the textile industry the INTUC-affiliated Rashtriya Mill Mazdoor Sangh on the issue.However, mill sources declined to give details about the proposal when contacted on Thursday.
Labour commissioner N J Gajbhiye has directed that the workers in Crown and Process House should be paid their dues in six months. The units belong to Hindoostan mills company headed by Mr Sudhir Thackersey, former national table champion. The company was formerly headed by cricket stalwart Vijay Merchant.
Nearly 1,400 workers of the two mills have accepted a Voluntary Retirement Scheme (VRS) but 700 others have refused to do so and have challenged the decision of closure and VRS under the banner of Hindoostan Crown Mill Siddhivinayak Kamgar Karmachari Sangharsha Sanghatana.
Hindustan mills own large properties at Jacob Circle, Lower Parel and Prabhadevi. They have already developed the Jacob Circle property with a 42-storey building after the closure of one of its major units.
The remaining workers have begun getting their wage dues after securing an order from Mumbai high court judge Nishita Mhatre.
Meanwhile, the company has begun shifting machinery from the units and it proposes to commercially develop the properties.
The public sector National Textile Corporation has closed down three of its 25 mills in Mumbai, Kohinoor at Shivaji Park and Dadar and INDU at Kala Chowki. It proposes to close down 12 more but does not have the funds to pay VRS compensation to workers.
Textile mill managements are not paying dues of workers even after making huge profits with sale of mill land, said Jayaprakash Bhilare, general secretary of the Maharashtra Girni Kamgar Union, affiliated to Kamgar Aghadi.
In the 90s the state government cited the example of Hindoostan mill to demonstrate that workers were getting their dues with the sale of the mill land. However, subsequently, this had not been borne out, he said. The management of Hindoostan has already informed the workers that they should not deposit cheques beyond a certain date as it had not been able to mobilise adequate funds.
The dues are to be paid in instalments upto March 2005. Workers are apprehensive about getting their dues over such a long period..
Mr M.T. Gangadharan, general manager, said the company had acumulated losses of nearly Rs 185 crore and had moved the Board for industrial Finance and REconstruction. He said the company could raise funds through sale of `unusable'' plant and machinery and development of mill land.