The Hindu Business Line : Daewoo workers seek relief as auction gets under way

Even as the auctioning process for the sale of assets of the erstwhile Daewoo Motors India has been set rolling again, the 1,400-odd workers at the company's facility are seeking relief by claiming their dues.

The workers, who have not been paid since April 2003, have sought payment of approximately Rs 86 crore from the official liquidator. The matter will come up for hearing on August 1 at the Delhi High Court.

The last time when the workers received payment in 2003 it was a lump sum of Rs 4.5 crore, from proceeds of the sale of spare parts and ready Daewoo cars at the facility. This was done after an agreement brokered by the then Labour Minister.

There are currently about 1,433 workers on the Daewoo rolls. "We have not asked for any compensation... we just want our salaries. We want to work at the plant and are hoping that the sell-off will finally take place this time around. Every time there is news that there are entities interested in purchasing the plant, we are hopeful that something would work out," said a worker.

Meanwhile, the Debt Recovery Tribunal has already given a go-ahead for the auction process for the assets. The reserve price for the entire assets (including the assembly and ETA unit) has been maintained at about Rs 1,100 crore.

Sources indicate that about three to four companies, including Tata Motors, have evinced interest in purchasing part of the assets. Last year, when the DRT invited bids from potential buyers for the assets (at a reserve price of Rs 1,103 crore), no bids were submitted.

Workers at Daewoo's plant, however, are waiting for the outcome of the latest bid to sell the plant with optimism, in the hope that it may bring a change in their fortunes.