Kochi: Trade unions under the Cochin Shipyard Joint Action Front held a token strike on Friday to put pressure on the management to desist from its proposed initial public offering (IPO) move.
While the whole-day strike was complete and peaceful, a meeting held in this connection urged the Union government to look at other means to raise funds for the profit-making yard’s expansion than sell its shares. Among others, the meeting was addressed by CITU leader K. Chandran Pillai and INTUC’s R. Chandrasekharan.
“As Prime Minister, A.B. Vajpayee had deferred the decision to disinvest Hindustan Newsprint Ltd. at Velloor, at the request of then Chief Minister A.K. Antony. While the yard management maintains that CSL is being disinvested as a matter of policy, the yard can still be salvaged if the management so desires. Today’s [Friday] strike was cent per cent successful, and we are contemplating going on an indefinite strike if the management presses ahead with the decision,” said Mr. Chandrasekharan.
Meanwhile, yard sources said while officers and supervisors reported for duty on Friday, the workers kept away, taking part in the strike.
The yard and the Shipping Ministry have maintained that IPO is essential to raise funds for the construction of an international ship repair facility at the yard.
The proposal envisages issue of an IPO of 3,39,84,000 equity shares of ₹10 each amounting to an equity capital of ₹33.984 crore. It comprises fresh issue of 2,26,56,000 equity shares and sale of the Government of India’s stake in the yard worth 1,13,28,000 equity shares of ₹10 each through a public offering in the domestic market.
