Financial Daily from THE HINDU group of publications
Thursday, Jul 18, 2002
Financial Daily from THE HINDU group of publications Thursday, Jul 18, 2002 |
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Corporate
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Trade & Labour Unions Nicco suspends work at telecom cable unit Our Bureau
KOLKATA, July 17 THE ailing Nicco Corporation Ltd has declared a "suspension of work'' at its telecom cable unit located at Kalyani in North 24 Parganas. Dr Abhijit Sen, co-chairman of Nicco Corporation, said that the management was forced to declare the work suspension notice because of a law and order problem. "There was a total lawlessness in the unit. We had no other way but to issue the notice'', Dr Sen told Business Line. Meanwhile, the workers of the telecom unit alleged that the management has been trying to transfer assets illegally out of the unit. Problem started when these workers protested against the move of the management. As a result the work suspension notice was issued on Monday. According to Dr Sen, there are 250 workers in Kalyani's telecom unit and its capacity is 30 lakh kilomteres per annum. "Till 2001-02 this unit was a profit-making one. However, in the current financial it was making losses and that was mostly due to the poor telecom cable market'', he said. The workers has also approached the West Bengal Government and apprised it of the situation. Dr Sen also said that they had already got in touch with the different State departments to inform them of the real situation. It may be noted that earlier this month Nicco Corporation decided to sell off its steel division, also located in Kalyani, for Rs 10 crore "on a slump sale basis'' to Ramasarup Engineering Industries Ltd. As a result of this decision, it decided to transfer the cable manufacturing machinery and equipment to its other cable-producing unit located at Shyamnagar in North 24 Parganas. Regarding the sale, Nicco Corporation stated that the move is aimed at cost reduction.
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