Business Daily from THE HINDU group of publications
Monday, Aug 27, 2007
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Business Daily from THE HINDU group of publications Monday, Aug 27, 2007 ePaper |
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Corporate
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Manpower TN Industrial Explosives staff give thumbs down to VRS plan
The VRS announced last week was much lower than that recommended by the company, says union. TEL has to bring down the number of workers by about 250-300 to survive.
R. Balaji Chennai, Aug. 26A special voluntary retirement scheme announced to cut down the workforce strength at Tamil Nadu Industrial Explosives Ltd has met with poor response as workers find the compensation unattractive. Bringing down the number of workers by about 250-300 from its current 800 is seen as a crucial requirement for the survival of the State-run enterprise. The workers were rendered redundant when the Centre announced a ban on nitroglycerine-based explosives in 2004. According to official sources, the company shifted to emulsion and slurry explosives but the excess workforce added to cost and affected the competitiveness. The company had recommended that a special VRS be announced to right size the labour force. This was also key to the company launching a new initiative. New tie-up
It has tied up with Maxam Corporation, a Spanish company and world leader in explosives manufacturing. TEL is to manufacture and market Maxam brand of explosives with the know-how to be provided by the Spanish company, which also plans to export the products made at TEL, sources said. According to union leaders in TEL, the VRS announced last week was much lower than that recommended by the company. The management has sought three slabs of Rs 4 lakh, Rs 6 lakh and Rs 7 lakh compensation depending on the years of experience put in by the workers. But the package offered by the Government was about Rs 1.75 lakh to Rs 2.3 lakh, which did not enthuse the workers. The package was not more attractive than the one announced for State public sector enterprises in general in 2002. The earlier package offered a maximum of Rs 1.75 lakh for loss making companies and Rs 2 lakh for profit making companies, they said. Mr C. Gnanasekaran, Member of the Legislative Assembly, who headed the Public Accounts Committee, said it had recommended a grant of Rs 50 crore last year to revive the company by expanding the manufacturing capability. The facility has sufficient infrastructure and manpower to increase production to be more competitive. The Government has released about Rs 5 crore. But ideally if enough funds were released at one go some significant upgradation can be taken up, he said. . The plant layout and the facilities are modern and meet all safety norms, according to officials. The agreement with Maxam lets TEL to continue manufacture its own line of emulsion and slurry-based explosives. TEL has a capacity to make about 140 lakh detonator cords a year and about 10,000 tonnes of emulsion explosives and 8,000 tonnes of slurry explosives.
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