MP: Contract Workers Halt Operations At LANXESS In Nagda

MP: Contract Workers Halt Operations At LANXESS In Nagda

This issue is primarily between the contractor and their contract workers, with LANXESS having no direct involvement.

FP News ServiceUpdated: Friday, February 02, 2024, 10:06 PM IST
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Nagda (Madhya Pradesh): The operations at the LANXESS factory were allegedly halted for some time as a result of contract workers illegally stopping their work.

According to the management, the apparent demand was for an increase in their current wages, even though there is already a Long-Term Settlement (LTS)/wage agreement in place for the past 5 years that is being strictly followed.

This issue is primarily between the contractor and their contract workers, with LANXESS having no direct involvement. As the incident occurred within the premises, the management promptly informed the relevant authorities to intervene and ensure the safety of the site.

The management said that they are grateful for the authorities' understanding and cooperation in this matter. The current LTS is valid from July 1, 2021, to June 30, 2026, they said, adding that the wages being given currently are approximately 20% higher than the government-mandated wages.

In addition, the company provides two Dearness Allowance (DA) revisions per year to all contract workers, following the government's declared rates. The bonus paid at a rate of 20% falls within the maximum eligible bracket, as per the law. All mandatory deductions and payments, such as PF, ESI, and Welfare Fund, are strictly complied with in accordance with the country's existing laws, they added.

Despite the organisation's dedication towards the welfare of their workers, certain vested interests continue to provoke a small group to create unrest, the company alleged. As the Principal Employer, LANXESS closely monitors wages/statutory payments and ensures the health, safety, and well-being of all contract workers at the manufacturing site, the management added.

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