HLL gets permission for closure of its subsidiary at Sewri

Mumbai, July 27 (UNI) Bon Ltd, a subsidiary of Hindustan Lever Ltd (HLL), has been granted permission by the Labour Commissioner, Maharashtra for closure of Bombay Factory Undertaking at Sewri with a rider.

Informing the BSE, HLL said that the rider was to pay current wages including DA and allowances to its (Bon) workmen numbering over 900 till their date of retirement without working.

Accordingly, the workers on an average be eligible to receive Rs 14.5 lakh per person as VRS in monthly instalments till normal retirement age of 60 years.

Apart from the VRS, the workers will be entitled to their PF and gratuity, accumulated till date and leave encashment, which will be on an average Rs 10 lakh per worker. A large number of them had been idle for nearly two decades.

The erstwhile employer, the company, had even offered to transfer the Bombay Factory undertaking to a cooperative of the workers for Re 1. Both the company and Bon Ltd had also offered to relocate a part of the undertaking to satellite units outside Mumbai, but did not receive any positive response from the Union.

In line with the order passed, Bon Ltd, a subsidiary of the company, has closed down its Bombay Factory Undertaking on and from July 26, 2006. The workers will have time till August 02, 2006 to avail of the aforesaid VRS offer directed by the State Government to be made available to them.

Bon Ltd will favorably consider such requests from workmen for VRS with the assistance of its holding company, HLL, provided these are within stipulated time and in conformity with the VRS notified to the workmen.

The government has also directed the HLL to help and assist Bon Ltd, its 100 per cent subsidiary, to meet the closure costs and the VRS liability for workmen who avail of the VRS.

The undertaking became unviable due to tremendous competitive pressure arising out of changed economic environment, locational disadvantages, exorbitantly high overheads, extensive litigation with labour and complete non-cooperation from the union.

In the current scenario, the company pointed out it was impossible to run the undertaking at a loss of Rs 15 crore per annum despite best effort.

UNI SN SSS VKG2350