The letter stated that termination of the employment was on account of permanent closure of Chakan factory. (Representational)
Diwali, the festival of light, has failed to bring cheer to the families of 97 workers of the Racold Thermo Private Limited in Chakan as they face an uncertain future after the overnight closure of their factory. Workers said their letters of termination were couriered to their residences and they were clueless about the immediate closure of the factory.
Located in the MIDC area of Chakan, most of the employees of the firm have been working there for last 20 years. Swapnil Bharmukh — general secretary of Poona Employees Union (AITUC), the registered union of the company — said the company, after talks with the union, had declared a three-day holiday starting November 1 for stock checking. “However to our greatest surprise, we got letters of termination the very next day in our homes,” he said.
The letter stated that termination of the employment was on account of permanent closure of Chakan factory. The technology of electric water heaters, which is manufactured there, the letter added, was obsolete and their demand was on a rapid decline as against newer technologies. “You are also aware that the volume of production has been declining from 2014 to 2015 at around 8 per cent, from 2016 to 2017 at around 70 per cent and from 2017 to 2018 (half year) to 87 per cent,” the letter read. The management, the letter stated, had looked into the possibility of manufacturing the new age technology products here, but the capital investments would be high and the management has decided to completely close the Chakan factory.
Workers have been paid two months’ salary and also compensation as per the relevant Industrial Disputes Act, 1947. Bharmukh and other workers admitted that they have received the payment. However, the suddenness of the move has put them in a state of shock as most of them are in the age group of 40-50 years. “We have children who are yet to finish their education. At this age, who will give us employment?” they asked.
In view of their termination, the employees moved the Industrial Court, which has given an interim order preventing the company to move its machinery, raw material, tools etc from the premises. On Monday, Yasmin Shaikh, government labour officer, visited the Chakan factory to report about the incident and investigate the matter. Attempts to contact the company by The Indian Express proved unsuccessful.