The Hindu Business Line : MTR Foods declares lockout at its Bangalore factory

Bangalore May 5 MTR Foods has declared a lockout at its factory near Bangalore . The company said the lockout was declared on Friday night following a two-day `go-slow' agitation by the workers in support of their demand for wages on par with MNC standards.

This development comes on the heels of MTR Foods acquisition by Norway-based Orkla in February. According to a statement from Mr P. Sadananda Maiya, Managing Director, MTR Foods, the company had been paying its workers salaries, annual increments and other benefits as per an agreement signed in 2005.

The agreement is valid till September 30, 2008. The statement said that as on date, the cost-to-company per employee who has newly joined is about Rs 6,000-7,000 a month. "Despite all these, the employees represented a further increase in 2006 and it was acceded in February 2006."

Despite this, the employees demanded salary on an "MNC standard", said Mr Maiya, adding that this was not acceptable to the company.

He said: "Without any notice and in gross violation of the agreement signed in 2005 and 2006, employees went on `go slow' tactics from May 2 after getting their salary slips."

`No demand charter'

Mr Maiya said "None of the employees have any idea or a clear picture as to how much raise they need or what their demands are. Neither the employees nor the union leaders have contacted the management with their charter of demands." The company said the two-day `go slow' protest had already resulted in an overall production loss of Rs 30 lakh per day, besides additional loss of Rs 12 lakh from ice cream production.

According to an office-bearer of the workers union, the workers want an upgrade in salary to match "MNC levels." He said that despite oral assurances of a hike in salary, it didn't reflect in the salary in May.

"Without any notice, the management declared a lockout and asked the night shift employees to leave; we were totally clueless," he said. He denied that the workers resorted to any `go slow' tactics.

The MTR Foods factory employs around 800 workers. The Labour Commission has called for a meeting of the workers union and the MTR Foods management on Monday.

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