CEO murder makes global cos rethink UP plans: Ficci survey

Written by Corporate Bureau | New Delhi, Sep 29 | Updated: Sep 30 2008, 06:42am hrs
The murder of the Indian CEO of an Indo-Italian company in the fast growing industrial township has sent shock waves among businesses with many saying such incidents will send negative signals to overseas companies wanting to operate in India.

A survey carried by apex chamber Ficci on the recent murder of the CEO, LK Chaudhry of Indo-Italian company Cerlikon Graziano Transmissions India Private Ltd in Greater Noida has revealed that this incident has forced many companies to reconsider their long-term plans and that investments both by foreign investors and by domestic investors in the state of Uttar Pradesh would suffer. A good number of leading domestic and multinational companies across different segments like Honda Siel, Daewoo Motors, Denso Pvt Ltd, Escort Yamaha, HCL, Polar Industries Ltd, Priya Gold Pvt Ltd and Samsung India Ltd are situated in Greater Noida.

Some respondents hold the view that over the last one year Noida has witnessed series of loot and murders with no major break through by police. The Greater Noida incident, according to them, could drive the new investors to explore better and safer options and in the process would affect Uttar Pradesh economy very seriously. Some respondents, do not agree to the view that there would be major impact on the over all development of Uttar Pradesh. They are of the view that law and order is the responsibility of the local government and any such probability which may be the root of misunderstanding and cause of violence between workforce and management, should be tackled by the management quickly enforcing labour laws without disturbing industrial peace.

Almost all the industry CEO representatives maintain the view that the grey areas of the labour policies of both the central and state governments should be reviewed. There should be an element of hire and fire policy in the revised labour policy.

A number of respondents feel that there should be strict enforcement of law and order in the industrial areas, which are the main repositories of the countrys resources wealth, talent and latest technologies. The labour departments of all the state governments should be reoriented and set up near the industrial sites to provide better counseling for the labourers for ensuring better industrial climate.

Various respondents are of the view that the corporate industry should invite the views of industrialist, management of all categories in the present context, particularly when they are moving towards contract labour and outsourcing, on a common platform to find out a viable solution of such problems.