The Hindu Business Line : Strike at Hind Motor's Uttarpara plant continues

Recovery plans
Following receipt of official sanctions, a recovery plan for the plant had been initiated. The plan includes setting up an auto components manufacturing facility within the plant complex, among other things.

Kolkata March 13 Even as the wildcat strike by a section of the workers at the Hindustan Motors Uttarpara plant continued till Tuesday evening, the company management was hopeful that "full normalcy" would be restored over the next few shifts.

While reports suggested that one of the five registered trade unions went on strike on Monday to protest against alleged non-payment of salary for the last two months, the company management attributed the "root cause" of the strike to inter-union rivalry.

Addressing newspersons here on Tuesday, Mr Moloy Chowdhury, Executive Vice-President of the company, admitted that workers' salaries were not being paid on time owing to cash flow problems. Delayed payment of salary was an "accepted practice" at Uttarpara and the workmen had been taken into confidence in this regard several times earlier, he said.

Mr Chowdhury said workers' salary for the month of January had just been paid, while that for the month of February would be paid sometime in April. The monthly wage bill at the Uttarpara plant has been pegged at Rs 2 crore per month. The Uttarpara plant employs 4,500 "technicians and not workers" in the "bargainable category".

According to him, the Uttarpara plant, which sells around 12,000 Ambassador cars every year, was expected to record an operating loss of Rs 20 crore in 2006-07. Following receipt of official sanctions, a recovery plan for the plant had been initiated. The plan includes setting up an auto components manufacturing facility within the plant complex, among other things.

Ms Soni Shrivastav, General Manager, Corporate Communications, CK Birla Group, attributed Monday's development to a "certain environment in the State". Asked to clarify, she said it could have been a "rub-off effect of Singur". Asked if the company would resort to cutting the number of jobs at the plant with a view to reducing losses, Mr Chowdhury ruled out any immediate plans in this regard and said the company was on a "capacity build-up mode" for its auto components business.

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