Calcutta, Aug 25: For the 43-odd staff at Rossell Industries Ltd, Friday was their last day with the company. Hindustan Lever Ltd, (HLL), which has bought the controlling stake in Rossell Industries Ltd from YK Modi, paid off the employees at its Calcutta office.Sources said that the HLL management did not allow the staff of Rossell Industries to enter the registered office on Friday. They were told to wait outside and were called in one by one to be given their dues.
Most of the staff members were on the rolls even before YK Modi took over the company along with HM Gupta. Punjab National Bank (PNB) and Rajendra Sethia were reportedly involved in the deal when YK Modi took over the undivided Rossell and its reputed Jokai brand in the early eighties.
Later, with differences surfacing between Modi and Gupta, Rossell was divided into two companies - Rossell Tea and Rossell Industries - in the early nineties.
Rossell Tea went to Gupta, who got three gardens - Dikom, Nokhroy and Borahi - and was allowed to retain the head office in Calcutta. YK Modi got eight gardens besides the Jokai brand and shifted to a new office close-by. To be fair, not only did HLL increase the lumpsum compensation for the staff and sub-staff, but it also boosted the pension package. According to HLL's offer, staff members were to get Rs 5 lakh lumpsum while the sub-staff were to get Rs 4.5 lakh. It was enhanced by Rs 50,000 in each of the categories.
The compensation package is over and above normal statutory payments like provident fund and other dues.
Sources said that the pension amount was also doubled. The monthly pension amount of the sub-staff was doubled to Rs 2,400 till the date of their superannuation. On the other hand, staff members will get between Rs 4,000 and Rs 4,500 each month as pension till their retirement.
Earlier, the HLL management had agreed to pay just six months salary to Rossell's executives including perks and all allowances as their separation package.
The only executive reported to have gained from the separation scheme is managing director D Atal, who is understood to have been paid a handsome package and was one of the first to exit. In fact, the staff was so upset with Atal for quitting suddenly after assuring them help in securing a better package that they refused to give him a farewell party.
Unconfirmed reports, another employee at a garden in Assam has been paid close to Rs 1 crore to leave. He is understood to have strong links with the political parties in Assam.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.