Union threatens protests if Atlas doesn’t reopen

WHILE ATLAS Cycles says there were 431 employees remaining on the rolls of the cashstarved company, the workers' union claimed there are about 500 other temporary employees.

Ghaziabad, June 5: The shutdown of the last remaining unit of Atlas Cycles in Sahibabad earlier this week came as shock to its employees, who have threatened protests if it does not reopen soon.

CEO N.P. Singh Rana said the shutdown is only temporary and the company will resume operations once it is able to raise about `50 crore by selling surplus land.

Till then the company is paying the lay-off wages to the workers, who still remain on the rolls. They are required to mark their attendance to get this salary.

While Atlas Cycles says there were 431 employees remaining on the rolls of the cash-starved company, the workers' union claimed there are about 500 other temporary employees. According to Mahesh Singh, general secretary of the CITUaffiliated union, the minimum wage at the factory is `13,600 per month.

During the lay-off period, the workers will get half the salary out of which about `2,000 would be deducted towards provident fund and other contributions, according to the union. The company has not elaborated on the lay-off wages but they are typically half of what the employees normally get.

Mahesh Singh said it will be tough for the workers to pay rent for their homes and feed their families with this amount.

Management and union representatives were summoned Friday by the deputy labour commissioner here. During the conversation, the management assured the workers' union leaders that it will reopen the factory very soon. If the management does not honour its word, the union will stage protests against the factory owners, Singh said.

Uttar Pradesh Congress leader Narendra Rathi said he will meet Union finance minister Nirmala Sitharaman and urge her to help the factory so that its workers do not die of hunger .

Local CITU leader Brijesh Singh claimed the shutdown of the Sahibabad factory will also render jobless several thousand workers at units from where Atlas outsourced parts for the bicycles. The unit closed down on June 3. Mr Singh said all workers gather daily at the gates to mark their attendance so that they get half of their salary during the layoff period.

Started in 1950 from Sonipat, Atlas Cycles grew to emerge as India's largest cycle manufacturer in 1965. It even ventured overseas and became one of the top bicycle producing companies in the world with a capacity to produce 40 lakh bicycles per year.