Lock-out at Shanthi Gears

Staff Reporter

COIMBATORE: Coimbatore-based Shanthi Gears has declared lock-out in all its plants.

In a communication to the Bombay Stock Exchange, the company has said that it has declared lock-out for all units with effect from 6 p.m. on July 20, 2009 for the safety of the properties of the company and its employees.

The Rs. 250-crore company has six plants here, including the foundry division and the machine shop and employs nearly 700 people.

It manufactures gears and gear boxes for industrial applications for domestic and export markets.

An official of the company told The Hindu on Tuesday that with the global economic recession, the company had faced slowdown in orders and hence terminated 150 to 200 apprentice workers during the last six months. This had resulted in labour problems and two days ago there was a stone throwing on a bus for the workers. Considering the safety of the workers and the company, lock-out had been declared, he said.

On Tuesday, the existing staff and workers of the company staged a demonstration in front of the Centre of Indian Trade Unions (CITU) office here urging the union not to interfere in the labour issues of the company. Over 800 workers were taken into custody and later released.

The protestors were joined by those working in Shanthi Constructions and Shanthi Social Service, which operated the petrol bunk, laboratory and pharmacy here.

Hence, these two divisions also did not operate on Tuesday.

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