Andhra Paper declares a lockout at the manufacturing plant of its Rajahmundry Unit due to an illegal strike, resulting in losses of INR 1.95 Cr per day

Andhra Paper declares a lockout at the manufacturing plant of its Rajahmundry Unit due to an illegal strike, resulting in losses of INR 1.95 Cr per day

East Godavari, Andhra Pradesh | 25 April 2024 | The Pulp and Paper Times:

In a recent development, the Board of Directors of Andhra Paper Limited (APL), a prominent player in the paper and pulp industry, has decided to declare a lockout w.e.f. April 24, 2024 at 3.00 P.M. at the Rajahmundry Unit and it shall continue till further notice in this regard.

In a letter submitted to BSE by Andhra Papers said, that operations of the Manufacturing plant situated at Unit: Rajahmundry had been disrupted due to illegal strike of the workers called by the Workers Trade Unions w.e.f. April 2, 2024.

The Management said, that due to their continued illegal strike and unlawful activities of stoppage of work and considering the prevailing situation and keeping in mind the safety of employees, plant and machinery, materials and other assets, the Management has decided to declare a lockout w.e.f. today i.e., April 24, 2024 at 3.00 P.M. at the said Unit and it shall continue till further notice in this regard.

“The reasons for Lockout is illegal strike with unreasonable demands and Non co-operation of workmen to resume manufacturing operations” the letter said

The Management said the due to this strike APL is bearing loss of production per day approximately, INR 160 lacs per day (total , 195 lacs per day for the Company as a whole)

"The Management under the prevailing conditions & continued stoppage of plant operations, hereby declare Lock-out in the Mills w.e.f. 24.04.2024 from B-Shift i.e., 03.00 PM onwards excepting the essential services and support / allied services (as per the list at Annexure-II) and also Works Office, Industrial Relations, Welfare i.e., Township Maintenance & Sanitation, Transport, Sewerage Treatment Plant, OHC Medical Centre and Security & Fire Fighting departments", a notice stated.

Earlier, In a letter to SEBI, APL said, In continuation of the intimation vide our letter dated April 3, 2024 we would like to inform you that, the operations of the Manufacturing plant situated at Kadiyam Unit, East Godavari has been temporarily shut down on April 15, 2024 owing to non-availability of pulp from manufacturing unit at Rajahmundry where the illegal strike by workmen called by the workers unions is continuing since April 2, 2024. The Kadiyam unit will resume operations as soon the pulp supply is restored.
Management has appealed the striking workmen to call off and resume the duties and to restore the normalcy for further negotiations/discussions. Defying the management appeal continuing the illegal strike is accumulating the operational business losses which will impact on the Company's survival. It is also noted that the striking workmen abetting and intimidating the staff & other loyal workmen who are attending their duties.

Kadiyam unit is dependent on Pulp Supply from Rajahmundry Unit where Pulp production stopped due to ongoing strike since April 2, 2024.

Web Title: Andhra Paper declares a lockout at the manufacturing plant of its Rajahmundry Unit due to an illegal strike, resulting in losses of INR 1.95 Cr per day