Nearly 300 contract workers engaged in a sit-in protest that began on July 7, alleging that Britannia retrenched some contract workers without prior notice and without settling their dues. The number of contract workers protesting, however, has halved to 150 as workers moved on to seek work at other places.
Protests by contract workers at Britannia's plant in Shakurpur in Delhi entered its 11th day today. This labour impasse has brought production to a halt, raising concerns about its impact on the company's financials and compelling the company to seek remedial measures.
The Shakurpur plant is a multi-product, multi-category plant that produces the NurtiChoice range, dairy products and biscuits amongst others.
Nearly 300 contract workers engaged in a sit-in protest that began on July 7, alleging that Britannia retrenched some contract workers without prior notice and without settling their dues. The number of contract workers protesting, however, has halved to 150 as workers moved on to seek work at other places.
In a statement to CNBC-TV18, Britannia has refuted this allegation terming it as "false and baseless" and "aimed at disrupting the company's operations".
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The company also maintains that these contract workers were hired purely on a contractual basis and therefore " there is no question of retrenchment." A company spokesperson further stated that the sole responsibility of payment to contract workers rested with the contractors who hired them.
He also added that the company is currently ascertaining the financial impact of this strike but does not believe it to be substantial, as the Shakurpur plant only contributes 4 percent to overall production capacity. The impact, if any, would reflect in the company's Q2 performance, says the spokesperson.
Britannia is also implementing measures to mitigate the situation. The company has shifted part of its production to other locations across India. By next week, it is looking to partially operationalise the Shakurpur factory with the aid of permanent workers. Britannia is also looking to hire more contract workers.
Britannia maintains that it has complied with contract labour laws drafted under the Contract Labour (Regulation & Abolition) Act, 1970. The Labour department is investigating the matter.
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