State encourages closure of factories, say MLAs

MUMBAI: Sinking party differences, legislators on Monday took the labour minister to task for allegedly encouraging the closure of industrial units in Mumbai.
Participating in a discussion on a calling attention motion, Meenakshi Patil (PWP), Bala Nandgaonkar, Dagdu Sakpal, Prabhakar More, Ramdas Kadam (all Shiv Sena) and Sachin Ahir (NCP), among others, fired a volley of questions at labour minister Satish Chaturvedi about the closure Goodlass Nerolac Paints’ Lower Parel unit.
Senior Sena MLA Dattaji Nalavade said the company had applied for closure because of the spiralling realestate prices in south-central Mumbai. “There is a growing tendency to arbitrarily close down industrial units and then sell off the land to make a fast buck, while workers are left high and dry,’’ Mr Nalavade said.
Mr Nandgaonkar and Mr More backed Mr Nalavade and expressed doubts about the paint company’s real intentions. “The government should curb the tendency on the part of companies to apply for closure and use it as a pretext to facilitate sale of prime plots in the heart of the metropolis,’’ Mr Nandgaonkar said. He warned that more and more industrial units are being closed down in Mumbai and elsewhere in the state.
“Some of them may move to the neighbouring states and thus slacken the state’s economic and industrial progress,’’ Mr Nandgaonkar said. Several MLAs pointed out that Goodlass Nerolac Paints’ Thane and Parshuram Lotte units were functioning smoothly and that the closure of the Lower Parel unit was beyond comprehension.
Mr Chaturvedi, the labour minister, said that the government had taken a policy decision to allow closure because scores of industrial units had already suspended production illegally and denied workers their dues. “Instead, if closure is formally allowed then workers can at least be decently compensated,’’ Mr Chaturvedi argued.
Mr Sakpal and Mr Ahir suggested a joint meeting of MLAs, trade union representatives and the management to revive the Lower Parel unit. Minister of state for labour Hemant Deshmukh said that a revival could be considered if the company submitted a proposal. He claimed that falling profits and deteriorating labour relations had forced the company to close the Lower Parel unit.