Crompton Greaves slumps into the red

Crompton Greaves is down in the red today, currently down 1.5% at Rs.167.85, closer to its intra day low point of Rs.166.50.

The price has slumped after the company announced yesterday evening that the production at the Nasik factory of the Company has been disrupted by a faction of employees of the unrecognised union by Company, opposing the wage settlement reached by the management with the recognised union earlier this year in accordance with law and in terms of the specific order of the Industrial Court, Nasik, which had directed the management not to negotiate with any Trade Union on any issue other than Recognised Union. The Company acted within the ambit of law and as per directions of the Industrial Court in engaging with the Recognised Trade Union. The action of the unrecognised union is in violation of the order of the Industrial Court, Nasik, based on its members undertaking, directing the workmen not to restrain or cause obstruction to the Company and its Officers and employees as well as maintain industrial law and order.

The company added that it has taken all the necessary measures to guarantee the safety of employees, who have chosen not to take part in the action against the Company's assets, and assets of third parties in the Company's premises. The management continues to work with the appropriate Authorities for ending the stalement and normalise production. In the meanwhile the Company has activated its contingency plans in line with business continuity management processes intended to ensure that there is minimum disruption of orders from customers.