Neyveli employees launch stir, dump Karunanidhi's stock-option proposal
04 Jul 2006
Mumbai: Employees of Neyveli Lignite Corporation (NLC) have spurned chief minister M. Karunanidhi's proposal that the government offer 10 per cent equity as employee stock option and said they would continue their agitation until the Centre stepped back from its proposal for divesting stake in the NLC. They also termed the proposal `impractical.'
The 19,000-odd employees would have to shell out Rs5-5.5 lakh (Rs0.5 million) each to raise Rs1,100 crore (Rs11 billion) for buying the shares, I. Nedumaran, president of the NLC Graduate Engineers' Association (NGEA), pointed out. The employees have asked the government to abandon the divestment proposal altogether rather than ponder over alternative routes for privatisation.
The DMK-affiliated Labour Progressive Front (LPF) vowed to continue with the protest until the Centre abandoned its divestment plans. "There is no question of buying NLC shares," newspaper reports quoted general secretary S. Rajavanniyan as saying.
The employees who observed a day's hunger strike on Monday would go on an indefinite strike beginning Tuesday if the government fails to withdraw the divestment proposal.
Meanwhile, the work-to-rule agitation going on for the past two days had already caused a 20 per cent production loss for the NLC, Rajavanniyan told a press conference.
From Tuesday night, lignite excavation and the functioning of the thermal stations would cease, disrupting power supply to Tamil Nadu, Kerala, Karnataka and Andhra Pradesh and the Union Territory of Pondicherry, he said.
The Left parties, meanwhile, proposed a week-long agitation from July 13 against spiraling prices and the government's divestment policy. The Left allies would launch protests, including demonstrations and rallies across the country from July 13 to 19, against the government's moves to divest stake in NALCO, NLC and NMDC, CPI general secretary A B Bardan said.
Leaders of various trade unions, trade and establishments, educational institutions, autorickshaw drivers and transport services in Neyveli who expressed solidarity with the NLC workers would observe a bandh on Wednesday.
The NLC union, Rajavanniyan said, had got the firm backing of the CITU, AITUC, INTUC, MLF, PTS, LLF and AICCTU, as well as the engineers' and officers' associations.
Although the NLC management had threatened to invoke provisions of Labour Disputes Act, 1947, against the striking employees, he said the union is determined to go ahead with the strike plan. However, he said, the trade unions might consider exemption to supply of power to the Neyveli township, hospitals and the ground water control department of the mines.
NLC, a mini-ratna PSU, had assets worth over Rs46,000 crore (Rs460 billion). A profit-making company for the past 30 years, NLC was reporting profits of over Rs1,000 crore (Rs10 billion) since the year 2000, the employees pointed out. NLC also pays taxes amounting to Rs350 crore (Rs3.5 billion) annually, they pointed out.
NLC, currently, is on an expansion mode and has lined up projects in Orissa, Gujarat and Rajasthan.
