Following a stalemate in negotiations between the employees and management, the Gautum Singhania-led Raymond has issued a notice asking its workers not to report to work at its neighbouring Thane plant from October 19.
The textile major plans to foray into the realty business by developing residential and commercial complexes on its 125 acre plot of mill land at Thane where nearly 1,885 workers are employed.
However, its plan ran into a roadblock as the union refused to accept the compensation offered earlier by the management for shutting down the mill.
The company, on Friday night, issued a notice to the workers asking them not to report on duty from October 19 and said that it would instead pay them their salaries regularly as it did earlier.
"Despite no production activities being carried out in the mill, we continued to make payments to the employees. The company was incurring idle expenditure on transport, canteen, electricity and water in addition to fixed expenses. Therefore, we have asked the workers not report for work but they would be receiving their salaries on time. This would help us in reducing additional costs," a senior official of the company said requesting anonymity.
The notice stated that despite a VRS settlement signed between the management and union, the company gave various proposals in respect of additional payment of compensation to the employees granting substantial benefits.