India-based Jaya Shree Textiles, a unit of Aditya Birla Nuvo Ltd., has witnessed labour unrest in the past six months. It has now beefed up security in view of the tensed situation and threats to two of its key management executives.
The textile company reportedly dismissed nine employees from service this month who were found guilty of charges of hooliganism during a flash strike in May this year. The strike cost the company an estimated Rs. 3.9 crores.
Initially, 24 employees were suspended but after a review by the State Labour Department and the district administration, it revoked the suspension of 15 employees.
The unit has been facing ire of labourers since the introduction of biometric attendance system and the management’s firm stance against union interference in recruitment and shop floor discipline.
Contrary to the company’s claim, labourers claimed that strike was observed as management was not in favour of Rs. 6-hike in daily wages from January onwards.
A leading player in linen and wool segment of the global textile business, the Rishra (West Bengal) unit of Jaya Shree Textiles employs around 5,500 people. The company recently made an investment of around Rs. 250 crores in the expansion of the manufacturing facility.
The company aims to be the leader in the domestic market in linen and be the preferred choice globally in wool business. The labour unrest has, however, disturbed the operations at the company extensively.
