Suspension of 1,500 employees cripples Aurobindo unit operations

By: |
Hyderabad | Published: November 26, 2014 12:49:40 AM

Aurobindo Pharma's decision to suspend over 1,500 employees at its Unit XI at Pydibhimavaram...

Aurobindo Pharma’s decision to suspend over 1,500 employees at its Unit XI at Pydibhimavaram village in Srikakulam district in Andhra Pradesh has led to widespread agitations and labour unrest. The labour force has said that many employees have been transferred or dismissed or have been issued show-cause notices by the management.

The unit manufactures over 50% of the overall production of the company. The unrest started on October 26, leading to an over 80% production loss — an estimated loss of R50 crore in 30 days.

Talking to FE, K Sanyasi Rao, Aurobindo Pharma Employees’ president and president of the Indian Federation of Trade Union, said that the agitation is likely to intesify with no assurance from the management. “We had demanded a wage hike on April 2 by giving a strike memo seeking salaries on par with the neighbouring units such as Dr Reddy’s, Mylan Labs, Hetero Drugs and other pharmaceutical companies. We sought R8,000 hike per employee for over 1,500 employees, besides an yearly increase of R3,000.” While this was not granted for unit XI employees, salaries were hiked at other units.

When contacted, the company did not respond to calls or e-mail on this issue.

The issue was not resolved despite talks with the management and even through a media intervention. With workers abstaining from work from October 26 onwards, the normal functioning has been affected. The union leader said that the joint commissioner of labour, Andhra Pradesh, had urged the workers to join for duty immediately, by a letter dated November 1, pointing out that the government has declared pharmaceutical and drug industry in the state as a public utility service, but the employees refused to budge as there was no response from the management.

No rest

Decision to suspend over 1,500 employees at Unit XI led to widespread agitation

Employees have been transferred or dismissed or issued show-cause notices

Workers sought R8,000 hike/employee, besides an yearly increase of Rs 3,000

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Indian rupee rebounds 8 paise against US dollar to close at 61.86
2Mercedes launches new C-Class at Rs 40.9 lakh
3ING Vysya Bank buyout credit positive for Kotak Mahindra Bank: Report