The employees' union has demanded that if the new management has plans of axing jobs, then each employee be given a severance package of a minimum of Rs 5 lakh.

However, L&T officials were non-commital. The officials merely said, "Narmada Cement still has not come into our fold and as when it does, which could be six months from now, L&T will undertake a feasibility study after which these issues will be decided." The employees' fears have been compounded with the Chowgules calling a meeting of all the company's 25 managers at its corporate office in Mumbai on Tuesday where they have been asked them to be prepared for transfers out of Mumbai.

One manager said, "We do not want to move out of Mumbai. L&T has a number of offices in the city and would prefer to be transferred to one of these offices."

However, a Narmada Cement director said, "How can we react to fears expressed by employees or do anything to assuage it? But the Narmada Cement management is certain that it will not introduce any VRS. The promoters have decided to sell their stake in the company to L&T and it is now for them to take care of all restructuring processes."

SR Vyas, president of the Mumbai faction of Narmada Cement Employees' Union said, "We have maintained cordial relations with the management and even cooperated with them during difficult times, particularly when the company was referred to the BIFR about three years back. Therefore, the management should be obliged to give us some sort of a safety net.

"In October, managing director Ashok Chowgule had called all the employees and requested us to agree for deferred salary payments with certain reductions. The workers were requested to accept a 40 per cent reduction, officers 50 per cent and managers 60 per cent cut in their salaries.

"The employees had agreed to deferred payments but not on reductions. The employees also did not raise objections when the comapny refused to pay bonus. Therefore, the existing management should assuage our fears by giving us some security."

The deferred payments are currently being undertaken at all the units of Narmada Cement for the previous month. The salaries for December 1998 are to be paid by the second week to all employees at Mumbai and Jaffarabad, by the third week to employees at Surat and Magdalla and to the entire management staff by the fourth week of January.