The Hindu Business Line : Hindustan Motors to withdraw DA freeze

Kolkata June 5 The management of Hindustan Motors (HM) has agreed to withdraw the dearness allowance (DA) freeze, according to trade union sources. The management has agreed to pay 300 points DA (or Rs 600 as one DA point is equal to Rs 2) this month and will decide on the mode of payment of the remaining 597 points in January, sources said. Company officials declined to comment on the development. "These are all routine things," Ms Soni Shrivastav, General Manager, Corporate Communications, CK Birla Group, told Business Line.

She, however, declined to give any details on the outcome of the discussions between the management and some of the trade union representatives. "Discussions are going on at bipartite level. We have reached some kind of understanding," another senior HM official said without divulging further details.

According to sources, besides payment of arrears, the management has also agreed to start paying DA with effect from April 1, 2007. However, workers who took part in the strike will be entitled to this running DA with effect from May 10, when the management lifted suspension of work at its Uttarpara plant.

On the issue of granting permanent status to casual workers, the source said, "the management will take a decision before December 2007." The management has also agreed to revoke suspension of workers who have replied to the charge-sheet issued by the management, the source added.

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