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Italian co not to shut India facility; other issues being decided

Italian co not to shut India facility; other issues being decided
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First Published: Wed, Sep 24 2008. 10 33 PM IST
Updated: Fri, Sep 26 2008. 09 48 AM IST
New Delhi: Italian auto-parts maker Graziano Trasmissioni SpA, whose India head was killed in an an attack by retrenched workers at its factory in Greater Noida near New Delhi, has no plans to close the facility, a company official said.
“The company will continue to operate. There is no question to shut down or move out as of now,” human resources head L.K. Gupta said after a company meeting chaired by chief executive officer Marcello Lamberto.
Other issues relating to the factory are still being decided, Lambergo himself said. “There are several issues relating to law and order, safety and security and labour issues,” said Lamberto, who came to India following the death on Monday of India division chief executive and managing director L.K. Chaudhary.
Labour unions have termed the event “unfortunate” and dismissed it as a one-off case although industry fretted about the damage to India’s image. “We are not sure if the incident can be linked to a certain number in crores of rupees (of investment that may be withheld), but it will definitely affect the image of the state and the country as a whole,” said Marut Sengupta, head of policy at the Confederation of Indian Industry.
The problem at the company’s Greater Noida facility in Uttar Pradesh that erupted into Monday’s violence had been simmering for four months, said Virender Singh Sirohi, state secretary of the Hind Mazdoor Sabha, a central trade union. “Employees wanted to form a labour union but the management was against it,” he said.
Chennai-based labour lawyer and political analyst Krishna Ananth said: “The original sin was committed when workers lost their right to become permanent employees after 240 days of employment, after recent Supreme Court judgements... Such problems arise during the conciliation process, after employees are retrenched. The conciliation process is done by a joint or assistant commissioner of labour and he decides some compensation to be paid by the company to the retrenched employees. This process takes a long time.”
Meanwhile, the state police said they will set up a special cell exclusively for tackling industrial disputes, which will be headed by an official of the rank of deputy superintendent of police.
PTI contributed to the story.
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First Published: Wed, Sep 24 2008. 10 33 PM IST