Nagpur: In what could be termed as bad news for city's industrial sector, the Steel Authority of India Limited (SAIL) threatened to shut its operations on account of "exorbitant" rates charged by the Mathadi workers for loading/unloading works at railway sidings.
The steel giant clarified that it was impossible to pay such a high rates, which are highest in India, to the workers for simplistic work. It claimed that city rates are multiple times more than that charged at other places like Wardha, Yavatmal and Chandrapur.
The Butibori-based company's concerns were recorded by 'Nagpur and Wardha Mathadi and Unprotected Labour Board' in its affidavit submitted before the Nagpur bench of Bombay High Court on Wednesday. The board also filed another affidavit regarding similar concerns raised by Kalmeshwar MIDC-based JSW Steel coated Products Limited.
Both affidavits are submitted as per the court's directives while hearing a suo motu PIL regarding unprecedented salaries to the tune of Rs4.5 lakh/month being paid to the Mathadi workers, who work in an organized syndicate under the Mathadi board, where outsiders are prohibited.
The one-man panel constituted by the board under its chairman VR Panbude however, dismissed contentions raised by both companies and amicus curiae Shreerang Bhandarkar. It recommended a steep hike of 34% in the charges to be paid to the workers. The panel also asked both companies to pay 17% retrospectively from 2001 to 2014, and another 17% from 2014 till this year.
Both Bhandarkar and Vidarbha Industries Association (VIA) counsel Firdos Mirza strongly objected to the board's decision terming it as "impractical", which would force the manufacturing units to shift their operations outside the state. They said it would make a serious dent in the process of industrialization in the backward region, which is already lagging behind western Maharashtra, and also led to rise in unemployment.
Before adjourning the hearing by two weeks, a division bench comprising justices Bhushan Dharmadhikari and Swapna Joshi, continued interim relief granted to both companies of paying minimum wages as per the rules.
During last hearing, the HC directed the Mathadi board and other respondents to take decision on revision of workers' pay scales. In case of failure, it warned that it would allow the companies to hire contract workers at monthly pay of Rs13,000 for loading and unloading works.
Earlier, the court sought an inspection report and proceedings of the panel constituted to study and resolve huge disparity in wages of Mathadi workers. The panel recommended to immediately reconstitute Mathadi Board and stop their new registration. It also suggested uniform rate fixation on tonnage basis per operation throughout state and to fix age of retirement considering the provisions of model standing orders.
The steel giant clarified that it was impossible to pay such a high rates, which are highest in India, to the workers for simplistic work. It claimed that city rates are multiple times more than that charged at other places like Wardha, Yavatmal and Chandrapur.
The Butibori-based company's concerns were recorded by 'Nagpur and Wardha Mathadi and Unprotected Labour Board' in its affidavit submitted before the Nagpur bench of Bombay High Court on Wednesday. The board also filed another affidavit regarding similar concerns raised by Kalmeshwar MIDC-based JSW Steel coated Products Limited.
Both affidavits are submitted as per the court's directives while hearing a suo motu PIL regarding unprecedented salaries to the tune of Rs4.5 lakh/month being paid to the Mathadi workers, who work in an organized syndicate under the Mathadi board, where outsiders are prohibited.
The one-man panel constituted by the board under its chairman VR Panbude however, dismissed contentions raised by both companies and amicus curiae Shreerang Bhandarkar. It recommended a steep hike of 34% in the charges to be paid to the workers. The panel also asked both companies to pay 17% retrospectively from 2001 to 2014, and another 17% from 2014 till this year.
Both Bhandarkar and Vidarbha Industries Association (VIA) counsel Firdos Mirza strongly objected to the board's decision terming it as "impractical", which would force the manufacturing units to shift their operations outside the state. They said it would make a serious dent in the process of industrialization in the backward region, which is already lagging behind western Maharashtra, and also led to rise in unemployment.
Before adjourning the hearing by two weeks, a division bench comprising justices Bhushan Dharmadhikari and Swapna Joshi, continued interim relief granted to both companies of paying minimum wages as per the rules.
During last hearing, the HC directed the Mathadi board and other respondents to take decision on revision of workers' pay scales. In case of failure, it warned that it would allow the companies to hire contract workers at monthly pay of Rs13,000 for loading and unloading works.
Earlier, the court sought an inspection report and proceedings of the panel constituted to study and resolve huge disparity in wages of Mathadi workers. The panel recommended to immediately reconstitute Mathadi Board and stop their new registration. It also suggested uniform rate fixation on tonnage basis per operation throughout state and to fix age of retirement considering the provisions of model standing orders.
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