Passes of 4000 contract workers of RINL cancelled, Unions fume

RINL-VSPs blast Furnace. Image used for representative purpose only.
| Photo Credit: Special Arrangement

The management of Rashtriya Ispat Nigam Limited the corporate entity of Visakhapatnam Steel Plant has cancelled the gate passes of 4000 contract workers with effect from Saturday (September 28, 2024).

This led to a protest at the gates of the steel plant, here on Saturday. It is still not clear whether the workers’ passes were suspended temporarily or permanently. The protesting workers were given permission to enter the plant after some time.

VSP has about 14,000 contract workers and around 12,600 regular employees, both executive and non-executive cadres combined. With the cancellation of the 4,000 passes the contract workers now stand at around 10,000.

Sources in the management confirmed the cancellation of the passes but also pointed out that most of the suspended passes were of bogus workers, who were enrolled due to some kind of political pressure. They also agreed that it was a part of slimming and trimming down the additional workforce, as a process of likely merger with SAIL.

Meanwhile, CITU State general secretary Ch. Narasinga Rao has alleged that Joint Secretary in the Steel Ministry Sanjay Roy was pressurising the higher officials of VSP during the past two days to prepare a list of workers, who could be shown the door. He said that the contractors and officials declined to issue notices to the contract workers.

Mr. Rao alleged the management had cancelled the ‘gate pass’ of the contract workers and reportedly told the security personnel they should not be allowed to work from Saturday morning. He noted that during the last five years, over 5,000 permanent employees of VSP had retired from service and the plant depended on contract workers to continue production.

It was publicised that the second Blast Furnace of VSP would be revived and start operations by October end. He wondered how production could be achieved without workers. Mr. Rao alleged that clandestine measures were being taken to pave the way for the closure of the steel plant. He also alleged the Centre was trying to mislead the media through a false campaign that VSP would be merged with SAIL.

The merger proposal, if any, should be announced either by the Steel Minister or the Finance Minister. Two board meetings were also not held in this regard. The boards of the two companies would have to adopt a resolution on the merger and the same has to be approved by the Steel and Finance Ministers and sent to the Union Cabinet for approval.

However, nothing was done as per procedure. Now, the contractors were being forced to terminate the services of workers, without issuing notices, in violation of the rules.

The CITU has called all workers to stage a protest on September 28, without hindering production at the plant.