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Pact on Grasim unit closure

Our Bureau

THIRUVANANTHAPURAM, July 7

AN agreement has been reached for the closure of Gwalior Rayons unit at Mavoor, near Kozhikode, and for the payment of compensation to the employees.

At the end of two days of discussions, chaired by the Labour Minister, Mr. Babu Diwakaran, here on Saturday, it was decided to treat the company as having been closed down from June 30 this year and to pay compensation to the employees till that date.

As per the agreement, the employees will be given compensation to the tune of 40 days' salary for every year completed in service as also for the years left for retirement. This apart, every employee coming under the agreement will be given Rs. 27,500 ea ch and all the payments will be made before July 23, according to an official statement.

Those employees who will be retiring between July and December this year will be given Rs. 10,000 each as ex gratia payment. The bonus for the year will be fixed at 8.33 per cent and paid proportionately till June 30.

The operations in the company came to a halt in May 1999 following pollution-related controversies. The company served a closure notice on August 23 the same year under Section 25 (0) of the Industrial Disputes Act which was, however, rejected by the Sta te Government.

It subsequently filed a review petition which was also rejected by the Government and the matter was referred to the Industrial Tribunal. The agreement reached on Saturday has finally put the issue, involving the biggest private sector industrial establi shment in the State, at rest.