Dear All
We have Biomass power plant with 50 to 60 emplpoyees generating Power from July 2007. Due to increased cost of raw materials we are unable to run the plant and it was shut down in Oct 2010. from Oct'10 to April'11 we have paid full salary with statutory dues to all the emmployees. our manangement want to sell the plant. meanwhile some employees have resigned and opted new job and for the remaining (actual - 47 no.s) we thought of settling down as per statutory procedure. (Minimum salary level is 4000/- Maximum is 21000/- for the employees).
All these employees refuse to accept the settlement and joinined a local union and file the complaint with labour office. 15 to 16 conciliation proceedings is over now and the demand from them is to pay 2 lakh each or go for 12(4) proceedings to meet us in the labour court. we negotiated to all by saying that we will give employment in our group companies with food & accomodation free with the same salary or we will pay Rs.50000/- as compensation. our of 47, 4 to 5 persons did the 18 (1) settlement and rest are not willing to get settled below 2 lakhs.
Need your expert comments on the below:
- what will the process if concilation officer will send the failure report (12 (4) to government
- how we should handle this.
- if the case is there in the labour court, can we able to selll the plant.
please revert
regards
Namashivayam
ere interested to make settlement for employees citing the reasons which they knew well as they are in the plant
