KOLKATA: Phoenix CBS Germany's plans to make fresh investments in Phoenix Yule Ltd (PYL), its 74:26 joint venture with the public sector Andrew Yule Ltd., is caught in a limbo over the Indian company's slow progress with its plans to restructure its white-collar workforce. The company's top brass has sought the state government's intervention in the matter.

While the German company is one of the world's largest makers of conveyor belt systems, PYL is the leading conveyor belt company in South Asia with shipments to 24 countries and sales projected to touch Rs. 150 crore in 2005.

Having carved out its place as a success story in the Centre's disinvestment programme, PYL has now embarked on a plan to restructure its business. The cornerstone of this initiative is trimming its 140-strong staff and management workforce by 35.

It is yet to receive a single application although the newly formed PYL Staff Association has agreed to the need for such restructuring, according to PYL Managing Director, T. K. Mukherjee.

At a time when West Bengal Chief Minister, Buddhadeb Bhattacharjee, and his Cabinet colleagues were globetrotting in search of capital, staff at the PYL factory at Kalyani in West Bengal's Nadia district were sending signals that could not possibly make him happy. Mr. Mukherjee said the staff association members had recently sent a group of prospective clients packing and had created noisy scenes during the visit by a Phoenix CBS team of directors.

The chief minister's office had already held a round of meeting with the association members.

However, the CITU-affiliated workmen unions, which had shut down production a few months back demanding higher wages, have distanced themselves from any trouble this time round.

Says Mridul De, President of the workmen's union: "While this is a matter between the management and the staff, we are against any such disruptive movement which hampers production."

Mr. Mukherjee told The Hindu that about 50 per cent of the white-collared employees were redundant, since their competence levels and age profile did not match the company's requirements.

A spokesman of the PYL Staff Association said it would not favour the implementation of any VRS unless the issue of fixing a proper pay scale for the staff was settled since the staff were nearly 25 per cent of their salary since leaving the AYCL fold.

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