Tuticorin Alkali Chemicals and Fertilizers declares lockout

TUTICORIN: Soda ash manufacturer Tuticorin Alkali Chemicals and Fertilizers Ltd, which stopped production since March 1, has declared a lockout, citing acute financial crunch.


The company, an associate of Southern Petrochemical Industries Corporation Ltd (SPIC), has reportedly not paid salaries to workers since May and has agreed to clear the dues tomorrow. But, it has declared lockout, labour department officials said today.

Deputy Commissioner of Labour S Thangappan described the lockout as illegal since the company had not issued notice six weeks before doing so as required under the procedure.

He said talks were on with the company management. TAC officials said the accumulated loss of the company was more than 50 per cent of its net worth. Its current accumulated loss was about Rs 145 crore.

They said the company had paid salaries up to April 2013 and proposed to the employees union that it would pay 50 per cent of the remaining wages.

The workers had been agitating for resuming operations of the company which had stopped production since March 1 as it did not have Co2 ( carbon dioxide), which was solely supplied by SPIC.

The SPIC in turn could not produce Co2 due to lack of availability of naptha, they said.

The employees union wanted the government to set up a new Co2 plant to enable resumption of production.

Its general secretary Dorai said 500 workers had been affected due to the lockout. Besides 1,000 people were relying on the company, started in 1982.