Production at two major units at Caparo's plant in Sriperumbudur came to a halt on Friday with over 500 workers on going on strike.
Workers at the auto components company allege they are still on ‘trainee' status and demand they be confirmed.
“The training period is for about 1-1.5 years. But many of the workers have been here for three to four years without getting confirmed,” said Mr E. Muthukumar, union leader at Caparo.
The UK-based Caparo, founded by Lord Swraj Paul, invested Rs 300 crore to set up the Sriperumbudur plant at the Sipcot Industrial Estate, in 2007. The plant makes stampings, aluminium die-castings and forgings.
There are 800 workers in total at the plant. Around 300 are contract labour.
‘Trainee status'
“There is not a single worker who has been given confirmation order. The management says worldwide, all Caparo units follow this policy of placing people as trainees,” Mr Muthukumar. “This way the company can pay lesser salary, fire anyone without financial benefits or settlement.”
The management, Mr Muthukumar complained, is refusing to come to talks.
“Mails sent to the management have also been sent back unopened,” said the union leader and a member of CITU. He also accused the company of employing “child labour” from North India.
The workers have placed a request with the Assistant Labour Commissioner.
Friday marked day two of the strike. A token protest was also held on Tuesday from 6 p.m. to 1 a.m.
“We will resume work only when confirmation order is given,” said another employee, on conditions of anonymity.
A company official said the management is working out a “conclusion” to the issue.