Philips India - Labor Problems at Salt Lake
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JUDGEMENT DAYIn December 2000, the Supreme
Court finally passed judgement on the controversial Philips case. It was in
favour of the PIL. The judgement dismissed the review petition filed by the
workers as a last ditch effort.
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The judge said that though the workers can demand for
their rights, they had no say in any of the policy decisions of the
company, if their interests were not adversely affected. Following the
transfer of ownership, the employment of all workmen of the factory was
taken over by Kitchen Appliances with immediate effect.
Accordingly, the services of the workmen were to be treated as
continuous and not interrupted by the transfer of ownership. The terms
and conditions of employment too were not changed. Kitchen Appliances
started functioning from March 2001. |
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This factory had been designated by Videocon as a major
centre to meet the requirements of the eastern region market and export to
East Asia countries.
The Supreme Court decision seemed to be a typical case of ‘all's well that
ends well.'Ashok Nambissan, General Counsel, PIL, said, “The decision taken
by the Supreme Court reiterates the position which Philips has maintained
all along that the transaction will be to the benefit of Philips'shareholders.”
How far the Salt Lake workers agreed with this would perhaps remain
unanswered.
QUESTIONS FOR DISCUSSION:
1. ‘Changes taking place in PIL made workers feel
insecure about their jobs.'Do you agree with this statement? Give reasons
to support your answer.
2. Highlight the reasons behind PIL's decision to sell the Salt Lake
factory. Critically comment on PIL's arguments regarding not accepting the
union's offer to buy the factory.
3. Comment on the reasons behind the Salt Lake workers resisting the
factory's sale. Could the company have avoided this?
ADDITIONAL READINGS AND REFERENCES
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