ACC Bargarh Workers Reach Settlement in Cement Plant Dispute

The Memorandum of Settlement was signed on 27 July 2026 following conciliation proceedings conducted by the Office of the Chief Labour Commissioner (Central), Ministry of Labour and Employment.

A major industrial dispute involving ACC Limited's Bargarh Cement Works in Odisha has been resolved after the company and workers signed a settlement agreement that secures financial benefits and welfare measures for employees affected by the proposed closure of the plant.

The Memorandum of Settlement was signed on 27 July 2026 following conciliation proceedings conducted by the Office of the Chief Labour Commissioner (Central), Ministry of Labour and Employment. The agreement brings an amicable end to a dispute that began after the management announced plans to close the facility from 19 August 2026.

Conciliation Leads to Breakthrough

The dispute started after ACC Limited issued a closure notice on 19 June 2026, prompting concerns among workers represented by the Hira Cement Shramika Sangha in Bargarh district. The matter was taken up for conciliation under the leadership of Deputy Chief Labour Commissioner (Central) Chiranjeev Saikia, who acted as the Conciliation Officer.

A series of discussions between the management and workers helped both sides reach common ground. The final agreement was signed after considering the concerns and interests of all parties involved, bringing an end to the industrial dispute through dialogue rather than prolonged conflict.

₹26.81 Crore Package for Workers

Under the settlement, a minimum financial package of ₹26.81 crore has been secured for at least 61 Shop Floor Associates (SFAs) employed at Bargarh Cement Works. The agreement also includes provisions related to employee welfare, service benefits and other entitlements, providing financial protection and social security for the affected workers.

Officials said the settlement was designed to ensure that employees receive fair support during the transition while protecting their legitimate rights under labour laws.

Focus on Labour Welfare and Industrial Harmony

During the conciliation process, the management was reminded of its legal responsibilities regarding employee welfare, fair service conditions and compliance with labour regulations. Discussions also emphasised the importance of maintaining healthy industrial relations through constructive engagement and timely implementation of welfare measures.

ACC Limited assured the authorities that it remains committed to the welfare of its workforce and compliance with statutory obligations. The Ministry of Labour and Employment said the successful settlement reflects the value of dialogue and cooperation between employers and workers. It also acknowledged the role played by the Chief Labour Commissioner (Central) Organisation in helping both sides reach a balanced agreement that prevented the dispute from escalating further.