Suspension of work at Kesoram Rayon’s Tribeni plant over bonus

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Kolkata, Oct 4 (PTI) Operations have been suspended at the Tribeni plant of Kesoram Rayon after labour unrest over the bonus issue, a company official said today.

“The Tribeni plant is on suspension of work over bonus issue,” the official of Kesoram Rayon, a unit of B K Birla Group’s Kesoram Industries, said.

There are around 4,500 workers at the plant. According to workers, Kesoram was supposed to pay bonus at the rate of 20 per cent, while the company was paying 15.25 per cent and of the rest due bonus would be cleared by next March.

Kesoram recently transfered the rayon business to an unlisted Cygnet Industries, a wholly-owned subsidiary, for Rs 480 crore based on a valuation done by SBI Caps to “reorganise and realign its existing operations.”

Kesoram sources said the management expects to reopen the factory soon.

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