Labour troubles force Ruia group to seek closure of Jessop & Co

Wagon maker Jessop & Co has sought permission of the West Bengal government to close down its Dum Dum factory, owing to labour trouble.

The Pawan Kumar Ruia controlled heavy engineering firm has written to the Mamata Banerjee government seeking permission for closing down the unit, which has 600 permanent employees on its rolls.

In a letter to state labour minister Purnendu Bose, despatched on 1 November, P K Ruia, chairman of the Kolkata-based Ruia Group, said the various union factions in the company have been at odds with the management of Jessop & Co after a tripartite meeting chaired by the state labour minister recently.

Jessop had proposed a productivity-linked wages for its 600 permanent employees, whose average salary is about Rs14,000 per month. This, however, was rejected by the unions, Ruia pointed out.

In the letter, a copy of which was also marked to chief minister Mamata Banerjee, Jessop said, the company has a number of unions of which two are affiliated to rival factions of the ruling Trinamool Congress.

The Jessop management has been at loggerheads with the Trinamool unions, especially the one controlled by the labour minister, for the last one year.

The management has lodged a series of FIRs in the local police station against manhandling of management staff and rampant theft of scrap, among others against the workers.

In his letter, Ruia alleged that Bose has dared the company management to close down and face the consequences.

The Ruia group acquired a 72-per cent stake in public sector Jessop India in 2003, when the government divested its stake in the company whose net worth had eroded over the years and losses mounted into several hundred crores of rupees.

The Pawan Kumar Ruia group turned Jessop & Co into a profit making entity.

The huge building and company head quarter since 1788 in the heart of Kolkata city near B B D Bagh at 63, Netaji Subhas Road, was, however, taken over by the government of West Bengal as the company did not have funds to pay its dues to the state.

The company now operates from its works at 1, Jessore Road, Dum Dum, Kolkata.

Today, Jessop manufactures railway coaches and wagons, cranes, road rollers and hydraulic equipment. It is the only company in Asia, which has an integrated test facility for testing power roof support and Hydraulic items.