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High Court relief for UPHCL employees

EMPLOYEES OF Uttar Pradesh Handloom Corporation Limited (UPHCL) got a relief on Sunday when the Allahabad High Court (Lucknow Bench) in its interim order restrained the ongoing retrenchment in the UPHCL for three months. Besides, the court stated that the Voluntary Retirement Scheme (VRS) would also remain open for the employees.

india Updated: Aug 21, 2006 00:55 IST

EMPLOYEES OF Uttar Pradesh Handloom Corporation Limited (UPHCL) got a relief on Sunday when the Allahabad High Court (Lucknow Bench) in its interim order restrained the ongoing retrenchment in the UPHCL for three months.
Besides, the court stated that the Voluntary Retirement Scheme (VRS) would also remain open for the employees.

It further stated that restraining retrenchment for three months would not affect the proposal of giving rehabilitation package by the government as this temporary restraint had been ordered only because of the steps taken by the State Government and the Corporation to meet out the dues existing employees of the Corporation.

The said directives were passed by the two-judge bench of Justice Pradeep Kant and Juctice KS Lakhra.

The court also took note of the point brought to the notice by the counsel of the State government that it had taken serious view on the inaction on the part of the Board of Directors of the Corporation not formulating the scheme for payment of the pending dues and arrears of the employees.

The counsel suggested that the Corporation should take effective steps for meeting out liabilities of dues by getting valuation of probable properties and process to sale out them. The counsel said that the Debt Review Tribunal (DRT) would release these properties without any delay. Thereafter, the proposal may be sent for releasing funds for the balance amount dues, if necessary to the State government either for disbursement or for having interest free loan.
It is worth mentioning that financially stricken UPHCL’s employees had been facing the axe of retrenchment for few months along with VRS. Both the schemes were implemented by the management to cut down the manpower in order to reduce the financial burden.

However, the UPHCL employees protested about running both the schemes together, but the management did not consider it. Therefore, the anti-employees act of the management was informed to the court and it considered the plea of employees and passed the said direction in regards to retrenchment.
Interestingly, the UPHCL is under Deen Dayal Hathkargha Protshahn Yojna revival plan and about Rs 10 crore had been already invested under the scheme. But, poor management and irregularities in the purchase of goods for sale through the UPHCL show rooms put the Corporation in the back seat.

To cover up their failure, the management introduced the retrenchment and VRS for its employees, alleged general secretary of the Association PC Bhanti.

He said the management had been insisting the employees for the retrenchment and VRS, whereas, about three years back more that 600 employees were released from the Corporation on the pretext of bringing down the financial burden. And again the same thing was being implemented without any valid cause by the management.

First Published: Aug 21, 2006 00:55 IST