Indoworth not to resume operations before Diwali

Earlier, it was believed that Indoworth India Limited would resume operations by Diwali which had rendered about 400 workers jobless.

But sources said the management of Indoworth India Limited which had sacked all its employees in the wake of Covid-19 pandemic has decided to take on board only a limited number of employees on contractual basis, citing absence of favourable market conditions as the major reason for this drastic step.

Sources at the company said Indoworth India Limited which is a hundred per cent export oriented unit has not received orders from its customers based in Europe, US, Japan, UK and United Arab Emirates as Covid-19 wave is not yet receded across Europe and the US.

Similarly, supply of raw material from Australia is also not yet resumed- thus hampering the resumption of factory operations, sources informed.

In the aftermath of lockdown, the unit has suffered massive losses and 150 tonne production on daily basis is necessary to break even.

As market conditions are not favourable, there are only small export orders with the company which may not fully recover its losses, the sources informed.

To make matters worse, the company incurred maintenance cost power and water bill charges which has made it impossible to run its operations on a full scale, top company sources said.

Indoworth India Limited, supplier of wool yarn and polywool yarn has had a turnover of ` 150 crore in the last financial year.

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Company offered VR

package to staffers

Sources at Indoworth India Limited on the condition of anonymity said the company offered voluntary retirement package to all its employees which included a lump sum amount, encashment of leave, gratuity and PF which was rejected by the Union.

The company has not removed any of its workers, but would re-induct them in phases on contractual basis, the source informed.

Initially, the company would re-induct maintenace staff followed by workers in all other categories, he added.

The company would also provide subsidised canteen service and transport facility for its workers based in Nagpur.

However, the employees which had been occupying company houses will have to vacate them as per contractual arrangment, sources added.

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Offer not acceptable

to workers

Sources said labour unions have not accepted the resettlement package for workers. They are opposed to the contractual system of re-employing them in the factory and are also demanding wage rise.

The management has offered them productivity linked pay packet- which is not acceptable to them, sources informed.

Meanwhile, workers representative Viru Gautam was not available for comment despite repeated attempts to contact him.