Financial Daily from THE HINDU group of publications
Saturday, Jun 19, 2004
Financial Daily from THE HINDU group of publications Saturday, Jun 19, 2004 |
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Corporate
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Trade & Labour Unions Labour problem in Durgapur factory — Alstom India to execute boiler orders from Indonesian factory Badal Sanyal
Kolkata , June 18 ALSTOM Projects India Ltd (APIL) plans to shift its boiler manufacturing activities from Durgapur in West Bengal to its factory in Indonesia following labour problems. Existing boiler orders will be executed from the factory and there are no plans to close it. However, new orders will be executed from its Indonesia factory. Recently, the company bagged orders for boilers from many SEBs and captive power plants in the country. Earlier, the work was planned to be executed from the Durgapur factory. Alstom sources confirmed the move and said the company was forced to relocate new orders following " irrational obstructionism" by the workers' unions at the Durgapur factory, primarily over the shifting of executive engineers from the factory to its corporate head office in New Delhi. The company plans to have a centralised engineering division in Delhi, comprising all its executive engineers. Engineers stationed at other factories in the country may also have to be shifted. The sources said the company believed it was too risky to execute the new orders from the Durgapur factory and thus decided to use the company's other boiler manufacturing facilities in Asia. Company officials said this development might prevent Durgapur from being seen as a location for future investment by Alstom. The company had issued a notice a month ago asking all the 50 executive engineers in Durgapur to join the company's corporate head office in New Delhi. About half of the executives had already shifted, when the unions operating at the Alstom's Durgapur factory began obstructing the relocation of some management staff to New Delhi. Around 6,500 employees work in the company's factories and offices in India.
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