This was confirmed by a company spokesperson Monday. The management was forced to make the move due to a combination of dwindling orders and surplus labour.

According to sources, the workforce of 390 has been broken up into three groups of 130 workers each.

At any point of time only two groups, that is 260 workers, are at work, while the third group remains on leave for a month. Each group goes on leave for a month by rotation.

According to a communique issued by the company, the recession in most sectors of the economy and especially the real estate and construction business, has impacted Otis India.

Simultaneously, there have been constant technological changes and process improvement which have rendered a part of the workforce surplus. In light of this, the management was forced to reduce the number of people working at the plant.

According to the management the move hasbeen made on humanitarian ground to avoid workers sitting idle in the plant. The management has also clarified that this does not comprise a lockout, layoff or retrenchment of staff.

About 50 per cent of Otis's workforce at the Kandivli plant have been estimated as surplus. The company had in December introduced a voluntary retirement scheme which has been accepted by 83 workers. This is less than the management had hoped for.

An earlier voluntary retirement scheme, introduced a few years ago had been accepted by a 150 odd workers. A few years ago the company also resorted to sub-contracting a part of its installation and service contracts.

The Kandivli plant is the largest elevator manufacturing facility in the country. Owing to persistent labour trouble, Otis India started a facility in Bangalore. This plant manufactures high end products of the company.

Despite the recessionary trend, Otis India has reported a 27.6 per cent increase in sales. Profit before tax however increased at a slowerpace of 11.7 per cent. While announcing its first quarter results this year, the company had indicated that its order book stood at Rs 460 crore.

A part of this is unclaimed deliveries by people who have booked elevators, but facing a cash crunch have failed to take deliveries. Despite the sluggish market, Otis India has retained a market share of 60 per cent.