KOCHI: A meeting of the stakeholders of Travancore Rayons Limited, Perumbavoor, held on Saturday, failed to arrive at a decision on some key pending issues. The company can be taken over by the proposed promoters, Midland Group, UAE, only after they are resolved. The meeting, convened by Industries Minister Elamaram Karim, decided to take a final view on the situation later.
The contentious issue is that of compensation to be paid to employees who will have to leave the company. The Midland Group had expressed its inability to redeploy the entire workforce. About 300 out of 800-odd employees might be absorbed by the promoters. The reason cited by the promoters is that a new venture will manufacture various products totally different from those made at the unit earlier. The production technology will require appropriately trained hands.
A formula for providing compensation is at the core of the present stalemate. While the coordinated body of trade unions is demanding a maximum of Rs.60,000 per employee, the promoters are willing to pay only less than half of the amount. The compensation package includes settlement of provident fund and gratuity.
The Minister pointed out that the efforts for reopening of the unit had gone on for long and it would not be possible to extend the revival process indefinitely. A case for winding up of the unit, pending before the court, had been temporarily stayed for the sake of facilitating revival. The case might come up after a few weeks. A final decision on the revival will have to be taken prior to the hearing of the case in the court.