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Tuesday, 31 August 2010 |
The employees of Raymond’s defunct Thane mill are likely to receive higher compensation as
the textile company has offered to reconsider its earlier proposal. Raymond, who planned to use the 126 acres of the textile mill for realty development, had been until recently adamant about its earlier compensation package. The Thane mill has been closed for the last six months. The company had proposed to pay Rs 160 crores to the 1,885 employees of the mill, while the employee unions have been pressing for Rs 328 crores. The Maharashtra government had asked Raymond to make an acceptable offer and had also warned Raymond else it would be nationalized. Finally, the company has now offered to reconsider its compensation package. This will be possible after the Thane Municipal Corporation offers additional floor space index for the redevelopment of some slums situated on the portion of the company’s 126 acres.
Raymond has offered to pay 50 per cent of the proceeds it receives from the redevelopment of slums towards compensation to employees. However, the VRS offer of Rs 150 crores for the factory workers stands as on date and any increase over this amount will depend on the outcome of an evaluation of this proposal and subsequent government approvals, resulting in extra benefits to the company. |
