[Resolved] Global Steel Holding limited — Non payment of salaries
(This is subsequent to earlier letter sent to Indian Embassy on 29th March 2009 posted earlier by some one)
After receiving the fax from employees of GSHL Libya, a meeting was held in chamber of Honorable Ambassodor of India in Tripoli, on 29th March 09, which was attended by Mr Katiyal (President Operations) and Mr. Warrier (General Manager HR). Management promised in writing vide letter dated 29/30 March 2009, to clear all the dues by May end, And work resumed to normalcy.
Subsequently two salaries were paid in April 09 and No salaries in May 09.
At the end of April 09, still five month salaries were balanced from December08 to April 09.
Since there was no positive sign of payment by management, employees decided not to submit any kind of report ( daily report, TPM reports, Six sigma projects etc) from 12th May 09 as a protest. But still management did not responded positively, so employees had no option to take some unpleasnt steps. Employees representatives submitted letter on 19th May 09 for their future action as below:
Dated 19th May 2009
The President (Operations)
GSHL, Camp Libya
Sub: Non payment of salaries to employees
We all employees of GSHL would like to remind you that during meeting with employees on 29th March 2009 in presence of ambassador of India, management agreed and later issued letter dated 30th March 2009, to clear all dues (Salaries for December, 08 to April, 09, Arrears, pending LTA, Incentives of 2008, balance salaries/other dues of employees transferred to Libya from other units) by end of May 2009. But so far no serious attempt is made to clear these huge dues. We understand, the money received from LISCO was utilized by management for some other purpose instead of clearing employee’s long pending dues. This step of management is giving us a strong feeling that management is not inclined to resolve the issue. Instead of solving the issues, management has verbally declared new unacceptable proposals like:
1- Division of basic salary in 80- basic and 20 variable. ( whereas already 40% of basic was considered as variable pay since beginning which is already not being paid due to recession)
2- Holding salary for 3 months ( It is not acceptable because salaries are not paid to employees after resignation even if they complete 3 months notice period)
3- Non payment of living allowance while employees are on annual authorized leaves.
Please note that all these new proposals we do not recognize unless there is a circular. Now, due to sluggish approach of management all employees are forced to take following steps:
1- All shift persons will stop attending shift duty, and join duty in general shift only.(i.e. 7.30 Hrs to 17 Hrs.) and observe weekly off day on Fridays from date 23rd May, 2009
2- Further, if management does not clear all dues before 31st May, 2009, all employees shall stop working in plant from 1st June 2009 and will remain in camp.
You will agree with us that we have shown enough patience and did not react even in most provocative conditions made by management. But now since management is not adhering to its own written commitment, we are left with no option but to take these unpleasant steps.
We once again request you to take appropriate action immediately to clear all our dues before 31st May 2009 before we take above steps. We shall not be responsible for any untoward consequences.
All harassed employees of GSHL.
Since management did not take any corrective action, employees resorted to G shift duty from 23 rd May 09 to 31st May 09 and susequently stopped going to plant. When no employee reported on duty, management requested Indian Embassy to intervene. During the discussion with Mr Rajesh Agrawal on 1st June09, employees told him about the salary status clearly. Mr Rajesh Agrawal was very much convinced that delay in paymment of salaries is unjusified and particularly after the written commitment, management should have cleared all the dues.
Mr Ashok Agrawal Director Finance visited Libya on 2nd May 09 and during discussion with employees only promised to pay two salaries immediately and two salaries by June 09 end and promised to clear all dues by December 09. Since management have always failed to fullfill committments, employees demanded for clearing all the dues immediately and regularise the payment of salaries.
. The libya contract between GSHL and LISCO is basically profit sharing on productivity improvement basis. There was no investment made by company( except gift of Lime coating and Oxygen Injection system for DRI plant). GSHL earned millions of dollars owing to hard work put up by employees only. By any calculation, salary to be paid to employees may be less than 10 % of earning. Mr Katiyal himself being a salaried employee always shows his concern, but he is not backed up by corporate at all regarding payment of salaries. Mr Pramod Mittal has earned so much money from Libya site itself that he could purchase his personal plane and a house worth 90 million ponds in UK but surprisingly has no money to pay to employees. Now May month is also completed and salary dues has increased to six months. Management is busy in breaking employees moral in stead of arranging funds for payment. Can any body help employees to recover their hard earned salaries from Pramod Mittal?
All harassed employees of Global Steel Holding Limited
Was this information helpful?
Aug 14, 2020Complaint marked as Resolved
Global Steel Holding limited
File a Complaint