After declaring a lockout of its Yanam plant, Regency Ceramics Limited has approached industry and trade bodies such as FAPCCI, CII and will seek intervention of Chief Ministers of Puducherry and Andhra Pradesh, to help normalise the situation in Yanam.
Baffled at the kind of veiled threats being held out to the employees against working for Regency and even its affiliated educational institutions, the management decided to seek the help of both the State governments for restoring industrial peace.
Regency Ceramics chairman G. N. Naidu told The Hindu that they were compelled to declare the lockout as the situation was not conducive for any forward movement. “We were advised by our consultants to go for a temporary suspension of operations till we take stock of the situation at the damaged plant, assess the loss and decide our future course of action,” Company Executive Director Satyendra Prasad Narala said. “In our minds this is only temporary suspension of operations as it will give reprieve to the company from bearing additional burden like wages, power bills at this point of time,” he said.
Severe blow
The company had not been doing well for the last few years as it was operating at only 60 per cent of its 44,000 sq.mts a day capacity due to shortage of natural gas. The latest labour unrest which claimed the life of president (operations) K. C. Chandrasekhar, dealt a severe blow to the company's hopes of turning the tide in the last quarter.
The company management was waiting for a word from the police officials inquiring into the incident before they visit the plant and assess the damage. “We hope to go there in a day or two, regroup our technical staff, some of them recuperating from the injuries they suffered during the January 27 rampage, and assess the damage. Meanwhile, the insurance agencies would assess the loss. Depending on their assessment, we will review the lockout in about 15 days,” Mr. Prasad said.
