Even as the government at the tripartite meeting held today, mounted pressure on the management of the Hindustan Motors Ltd to submit a revival plan, the company said that restructuring and clearance of workers dues were its prime focus areas.
Most of the union representatives, which participated at today’s tripartite meeting expressed disappointment at the outcome saying that virtually nothing was achieved.
The meeting lasted for three hours and focussed mainly on the issue of reopening of the Uttarpara plant and the payment of wage arrears. The gates of the factory, which rolled out the iconic Ambassador cars were shut on May 24 following a work suspension declared by the management. The ‘closure’ also threw out of employment 2650 employees, managers and contractual workers.
Sources said that in response to unions demand for payment of at least one month wages (there is a backlog of around four months), the company has said that it would be in a position to comment on its funds position only at the end of the month.
The company said in a statement that it is committed to pay off all back wages as soon as it has the funds from the sale of assets.
The existing situation continues to be stark with demand for the product being very low compared to the fixed expenses at the Uttarpara plant, it said. HM paid Rs 7000 to its 2600 employees in the last week of May following an express request by the state government at a bipartite meet.
The restructuring exercise is a necessary step to evaluate all options and address challenges that include the drop in sales of Ambassador and the constraints to restructure the organisation commensurate with this drop in sales. The company has requested for a suitable time-frame within which it can restructure the organisation and significantly reduce its liabilities before deciding on next steps and till such time will continue to be engaged with the State Government in an effort to restructure the organisation, the statement said. Government officials present at the meeting said that the company has been asked to submit its revival plans at the earliest.
