[1637 ]
GOVERNMENT OF PUDUCHERRY
LABOUR DEPARTMENT
No. 11740/Lab./AIL/T/2019/461.
Puducherry, the 14th May 2019.
ORDER
Whereas, the management of M/s. Puducherry Co-operative Sugar Mills
Limited, Lingareddipalayam, Puducherry, has submitted an application in Form-O-3,
dated 02-05-2019 to the Secretary to Government, Labour Department, Puducherry,
seeking permission for extension of Lay off with effect from 11-05-2019 under
section 25-M of the Industrial Disputes Act, 1947, read with rule 75(B) of
the Industrial Disputes (Central) Rules, 1957;
Whereas, on perusal of the Lay off application, dated 02-05-2019 of the
management, it is observed that the management has stated various reasons for
seeking permission for Lay off as detailed below:–
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17 {
No.
100
Poudouchéry
Vendredi
17
Mai
2019 (27 Vaisakha 1941)
No.
Puducherry
Friday
17th
May
2019
1638
LA GAZETTE DE L’ETAT
[ PART-I
1638
(i) The Mill is unable to get adequate stock of sugarcane for crushing
due to non-payment of arrears of cane price to the tune of ` 21.07 crores payable
to growers.
(ii) The financial supports provided by the Government has decreased
from ` 19.93 crores (2014-15) to ` 7.43 crores for the year 2016-17 and for the current
year no budgetary allocation has been made by the Government.
(iii) The apex Co-operative Bank restricted the credit limit to ` 9.25 crores
which is still over due and no interest was paid for the principal amount.
Therefore, it is difficult to get further loan from them.
(iv) Production of sugar in the Mill is declining year by year whereas,
Mills overheads and establishment cost remain same.
(v) The Mill’s Bank Account and vehicles were freezed by the EPF
Organization for an amount of ` 1,150.60 lakhs.
(vi) The power supply of factory was disconnected on 22-11-2017
due to non-payment of electricity charges of ` 40 lakhs.
(vii) Sale order for molasses is pending due to Bank attachment.
(viii) Salary and Lay off wages from March 2017 to March 2019, bonus,
gratuity, EPF, cane cess up to March 2017, purchase tax @ 14.5% on FRP up to
2016-2017, Sales Tax and harvester rent to Agriculture Department up to 2016-2017
for an aggregate amount of ` 2,292.49 lakhs has to be cleared.
(ix) Salary recovery dues towards Staff Credit Society, Employees Credit
Society and PCSM Employees’ Stores to an extent of ` 388.91 lakhs are yet to be
discharged by the Mill.
(x) The accumulated loss as on 31-03-2018 is ` 218.53 crores.
Whereas, on summarizing the above reasons, shortage of sufficient
quantity of sugarcane for running the Mill and to mobilise the working capital are
the reasons for the proposed Lay off;
Whereas, on examination of the application, it is found that the management
has applied Lay off only for regular employees who are working throughout the
year in the industry and their application is in accordance with the Industrial
Disputes Act, 1947;
Whereas, the management has sought for permission for Lay off due to
shortage of raw materials, since, the Sugarcane Growers Associations are not willing
to supply sugarcane unless they are paid the arrears for the cane supplied and
there is acute shortage of working capital and it is found that there is shortage of
raw materials for running the factory;
Whereas, eventhough, the Government of Puducherry is holding 95% share
capital, the factory administration is purely independent in nature and the enquiry
under Industrial Disputes Act, 1947 is statutory one;
PART-I ]
LA GAZETTE DE L’ETAT
1639
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Published by The Director, Government Press
Printed at: Government Central Press, Puducherry.
Posted at: Puducherry HPO on every Tuesday
Whereas, it is observed that there is sufficient ground on the part of the
Management for seeking Lay off on account of shortage of raw materials to run
the factory;
Now, therefore, in exercise of the authority delegated vide G.O. Ms.
No. l77/80-LAB., dated 1st September, 1980 of the Labour Department to exercise
the powers conferred by the sub-section (1) of section 25-M of the Industrial
Disputes Act, 1947 (Central Act 14 of 1947), the Secretary to Government (Labour)
hereby grant extension sought for by the management, M/s. Puducherry
Co-operative Sugar Mills Limited, Lingareddipalayam, Puducherry, to Lay off
93 workmen as defined under section 2(s) of the Industrial Disputes Act, 1947
(Central Act 14 of 1947) with effect from 11-05-2019 to 10-11-2019 for six months.
(By order)
E. VALLAVAN,
Commissioner of Labour-cum-
Additional Secretary to Government (Labour).
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