Indian Oil Corporation (IOC) officials have warned of shortage of LPG cylinders in northern districts of the State because of the ongoing labour strike at its LPG bottling plant at Chelari and appealed to the State government to intervene to settle the dispute.

An IOC official said the go-slow protest action by workers engaged by a contractor at the plant had led to a decline in production which in turn would lead to LPG shortage in northern districts.

The chief area manager of IOC in Kozhikode said on Thursday that normal production at the Chelari plant had been affected since last Friday after contract labourers employed by the handling contractor resorted to go-slow action to press their demands.

The official termed the action “illogical” and said these were not included in the written agreement executed with the new contractor two weeks ago. Because of the go-slow tactics of contract workers, production had come down “drastically” affecting availability of LPG cylinders.

He said the dispute arose because of the interpretation of the wage agreement signed by the contractor and the trade union of labourers. The contractor had assured IOC management that his firm was fulfilling all the terms of the agreement.