HMT Machine Tools Ltd., a subsidiary of HMT Ltd., has said that it has paid the September salary on Tuesday and is exploring ways to overcome its financial crisis.
The management must meet its salary expense from out of the revenue earned from sales without government support. “We are facing severe financial crunch due to the slump in demand. The management is doing its best to ensure that the basic requirements of the employees are met as far as possible in times of crises,” the company said in response to a news item that appeared in this newspaper on Tuesday.
It said it was discussing various related issues with the recognised union, whose members were cooperating with the management. HMT Machine Tools has 675 employees in the Bangalore unit and 2,500 staff members across all six units in the country, a senior official said.
A company statement stated that the strike by five members of an unrecognised union in front of the company premises was illegal.
While nine employees from the Bangalore unit were sent on deputation to other units, two of them who are office-bearers of an ‘unrecognised’ union had opposed the decision and were on strike. The Regional Labour Commissioner and the High Court had rejected their plea to cancel the deputation order, the statement said.