Thin client devices maker VXL Instruments is caught in a dispute with its workers? trade union over its move to retrench 78 senior employees of the company. While the company insists on retrenching the workers, the trade union has moved the dispute to the state labour commissioner.
Reportedly, the agitating workers, of one of the company?s two units, were not allowed inside the premises in Bangalore?s IT hub Electronic City.
Assistant labour commissioner Vincent Concesso confirmed that his office was examining the dispute. “There are allegations and counter allegations being made. We will examine the case and a decision will be taken,?he told FE.
The BSE-listed VXL Instruments employs over 216 employees across its two plants in Bangalore, and has sales offices across the Europe and Americas where it has export markets.
CITU?s district-president E K N Rajan alleged that the company?s intention was to hire young hands on contract basis to replace its senior employees. Rajan said that VXL issued unwarranted transfers to some of the 78 employees and delayed their salaries beyond the stipulated dates.
“Most of these employees have not yet reached their retirement age,?he said.
VXL-head of human resources B G Kariappa refuted the union?s allegations. “We have not hired any fresh hands as alleged by the union. There have been some need-based transfers which is only around 14 employees in last 10 years”.
The company said that its business of cathode ray tubes – in which the electronic city unit was involved – had shrunk owing to poor market conditions abroad. “The retrenchment of surplus workmen is core to the survival of the company. The resolution (of the dispute) would be through retrenchment,?Kariappa said.
He said that since 2006, the company had offered a VRS Scheme which was 25% more than the statutory amount payable for retrenchment.