Kirloskar Electric in 'labour' woes

Kirloskar Electric continues with its red streak today too. The stock is down over 3.5% at Rs.30.25, its current intra day low.

The stock is down, reacting to the company’s announcement that due to pending conclusion of wage negotiations with the labour union at the unit, the manufacturing operations at the company’s unit 2 in Hubli, Karnataka are under temporary suspension from Tuesday.

The labourers are currently agitating and the cause is that 30 months after expiry of earlier wage agreement, the management has not yet reached a consensual wage agreement. The labourers have said that their salaries for past nine months have not been paid and were not provided with even safety gear for work on the factory floors.

General secretary of the employees union K.C. Paul said the management had approached the Assistant Labour Commissioner, and based on his direction, they would decide on the next course of action.