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Andhra Paper Limited Announces Lockout at Rajahmundry Unit Due to Workers' Strike
Team Finance Saathi
06/Jan/2025
What's covered under the Article:
- Andhra Paper Limited announces a lockout at its Rajahmundry unit due to an ongoing workers' strike.
- The strike has caused a production loss of 510 MT per day, impacting operations.
- The company has insured its assets and awaits further action from the industrial tribunal.
Andhra Paper Limited, a major player in the paper manufacturing industry, has declared a lockout at its Rajahmundry Unit located in East Godavari, Andhra Pradesh, following an unresolved workers' strike. The strike, which began on January 3, 2025, was called by the Workers' Trade Unions over demands for wage enhancement. The situation escalated as the strike was deemed illegal, with no resolution in sight even after multiple requests from management for workers to resume duties.
Reasons Behind the Lockout
The management's decision to initiate a lockout, which started at 6:00 AM on January 6, 2025, comes after workers refused to end the strike despite its illegal nature. The strike was primarily driven by demands for wage increases, which the management deemed unreasonable. The safety of the employees, machinery, and other company assets also became a major concern, prompting the decision to lock out the facility.
This lockout will remain in effect until further notice. The local administration has been involved in the situation, and the dispute has been referred to an industrial tribunal for adjudication.
Operational Impact
The ongoing strike and subsequent lockout have resulted in significant operational disruption. The Rajahmundry unit has suffered an approximate loss of production of 510 metric tons (MT) per day. Despite the loss, the company has indicated that all assets are insured, mitigating the financial risks associated with the disruption.
Legal and Administrative Proceedings
The matter has been referred to the industrial tribunal for adjudication. While the strike continues, the company remains committed to ensuring the safety of its operations and assets. Additionally, management has appealed to the workers to resume work, stressing that the ongoing industrial action is detrimental to both their welfare and the company's operations.
Key Details on the Situation
- Impact on Production: The strike has resulted in a 510 MT per day production loss.
- Factory/Unit: The disruption is occurring at the Rajahmundry unit of Andhra Paper Limited.
- Reasons for Strike: The strike was triggered by illegal wage demands and continues despite management's efforts to resolve the issue.
- Insurance Coverage: All assets, including machinery and inventory, are covered under insurance.
The company has made these disclosures in line with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and will continue to update stakeholders as the situation develops.