M A I N   N E W S

Two cycle units closed down
1,500 workers rendered jobless
Shveta Pathak
Tribune News Service

Ludhiana, November 3
Over 1,500 workers of Rockman Cycle Industries and Highway Industries, both sister concerns of the Hero Group, were rendered jobless today following the closure of two units of these companies.

The management, which claimed to have obtained the government’s permission for closure, said labour problems had rendered the units nonviable as they were running into losses.

Workers, on the other hand, termed the closure as illegal and alleged that the units had been closed down without any notice.

Hundreds of workers demonstrated at various places in the city amid high police security.

“It was only this morning when we came for work that we learnt that the factories had been closed down. The police did not let us enter the factories,” alleged joint-secretary, Centre of Indian Trade Unions (CITU), Punjab, Jagdish Chand.

The notices announcing the closure of the cycle divisions were pasted outside the premises of the two factories.

The notices said the units were “permanently shut down from November 1, 2005”.

Rockman Cycles, established in 1961, was “the largest manufacturer of bicycle chains and hubs in the world”. The chain and hub manufacturing unit employed over 750 workers, who, with its closure, are jobless.

Highway Industries was the leading manufacturer of freewheels. “Workers worked at their own will, as a result of which production had been reduced to less than half during the past four years,” said a company spokesperson.

Due to “indiscipline by the workers and tactics like slowdown these two units had been suffering heavy losses,” he added.

It was in May, 2005 that the company had applied to the Labour Secretary seeking permission for the closure.

The case was referred to Financial Commissioner J.R. Kundal, who, according to the company, gave written permission for the closure of the two units from November 1.

The company said the situation had gone “beyond the control of the management and it was not possible for it to sustain productivity and quality standards of international level amid global competition”.

The company said Rockman’s daily production, which was around 70,000 around four years ago, had come down to around 30,000.

“The auto components and auto parts manufacturing units of both companies are operational. Only the cycle component manufacturing units have been closed.”Both these units supplied components to Hero Cycles and also exported their products.

Hero would now outsource the raw material it obtained from these two units and it expects it to be available at much lower cost.

Workers, however, termed the closure as “management’s conspiracy” and also claimed that there were no losses.

“They had shifted many workers from the cycle division to the auto components division. If the strength of the workers is halved, how can they sustain the same quantity of production achieved four years ago,” asked Jagdish Chaudhary, president, Lal Jhanda Rockman Cycle Mazdoor Union.

He also alleged that the management continued including expenditure of both units in the expenses of the cycle division and said workers feared that these factories would be reopened after some time but with contract labour.

The company, however, refuted these charges and said it had carried out the entire process in accordance with the law. “We are willing to pay them their dues,” the spokesperson said.

On workers who have been rendered jobless as a result of the closure, Managing Director of Rockman Cycle Industries Suman Munjal expressed helplessness and said: “They could be absorbed by industries that are going in for expansion. How can we commit anything? The units have been closed down.”