Posco India is pruning staff in Orissa. Insiders are a bit surprised at the timing because the South Korean steel major just got green clearances for the 12 million tonne steel plant in the state. But observers point out that the company is in no hurry to start the project because the fate of the Kandadhar iron ore mines, key to starting the project, is still hang in fire. The case is being fought in the Supreme Court.
? Without a captive mines in hand, Posco India is not going to start the project work,?? said a senior Orissa government official involved in Posco India?s project.
Posco India had signed a MoU for the project on the assurance of the state government that it would be provided with captive iron ore mines with a total deposits of 600 million tonne, the official pointed out.
Now, the company started layoff. Simanta Mohanty, general manager (external relations) of the company, has put in his papers.
Eight others have been asked to look out for jobs. Some of them have been given the February 28, 2011 deadline while some others March 31, 2011.
It is not only the corporate office staff is losing jobs, personnel deployed at site in Kujanga near Paradip have also been asked to submit their papers.
Most of the employees facing retrenchment are from Orissa. South Korean employees, however, are being redeployed elsewhere. While some of them have been sent back to South Korea, others have been accommodated in other projects in India.
Posco Foundation director, In-Ho Park, has been sent back to South Korea. YK Yoon, engineer construction, has also left the country. Kaun Ho Lee, planning & co-ordination, has been redeployed in the Karnataka project.
The present laying off exercise will bring down Posco India?s manpower in the state to almost half. It had a strength of 30 in the state.
? I have been asked to reduce the office to skeleton size,? a senior HR official involved in the ?manpower rationalisation exercise? told FE, confirming Posco India?s move to downsize.
Senior executives have been briefed that they have to work for Posco India?s projects proposed elsewhere in the country too.