Usha Martin worried over irregular payment of salaries

A union of Usha Martin has raised concerns about irregular payment of salaries and sought government's intervention for sale of the company's wire rope manufacturing facility in Jharkhand to Tata Steel.

Hind Mazdoor Sabha affiliate Engineering Labour Union of Usha Martin Ltd has written a letter to Jharkhand Chief Minister Raghubar Das over the issue, weeks after Tata Steel announced the acquisition of the steel business of Usha Martin Ltd (UML) for Rs 4,300-4,700 crore.

"We the workers of Usha Martin Ltd, Tatisilwai, Ranchi (Jharkhand) want to draw your attention towards the exploitation meted out to the workers of the company by the management of the company...From the past two to three years the company is not paying the salaries to its workers on time," the letter noted.

The union has also urged the government that company should be acquired by the Tata Steel so that the future of the employees is secure.

Reacting to the development, Usha Martin CFO Rohit Nanda said that the company has gone through a difficult period in the past few years and has had unavoidable delays in payment of salaries by a few days on some occasions.

"A splinter group of employees, part of an unrecognised union is fuelling unrest at our plant at Ranchi for past four-five days demanding enhanced bonus etc. The splinter group is instigating employees for a tool down strike but the operations have returned to be near normal," he said.

The company has signed a settlement with the recognised union on bonus, where 8.33 per cent bonus has been agreed as per Bonus legislation and for encouraging the employees, an additional ex-gratia amount has also been given, he stressed.

The bonus payment has already started and will be completed by next two-three days.

"As it is already known in the public domain that the steel business sale to the Tatas will result in a debt free and healthy balance sheet and the company will become robust to meet all its financial commitments in time," he added.

Usha Martin Ranchi facility is spread across an area of more than 100 acres and employs more than 1,700 people. The wire ropes produced in this plant are used in oil & offshore, mining, crane, elevator, aerial ropeway, and bridges, as per the company website.

Tata Steel, in September, said it has executed definitive agreements for the acquisition of the steel business of UML through a slump sale on a going concern basis.

The deal is expected to be completed in 6-9 months, it had added.

Usha Martin is amongst the largest wire rope manufacturers in the world and a leading speciality steel producer in India.