Bangalore, Aug 7 () : Parle biscuits and confectionery maker will close down its manufacturing unit here on September 9th. Labour problems that resulted in damage to machinery has forced the company to exit from here.
The company has Karnataka government labour department’s approval to close its factory. The order was signed on August 3. Secretary to labour department in the closure order said that hearing out the unions and the management and going through the document submitted, the permission was granted under the Industrial Dispute Act.
Parle Products Pvt Ltd’s application for closure said that the unions did not obey the civil and High court orders and broke mutual agreements. The workers disrupted work by sitting in strikes and targeted officers. They sabotaged machinery and soon it was posing a threat to the life of the management and the safety of the LPG unit was at stake.
It suffered a loss of 1 crore. Unions have denied these charges and blame the Government for not solving the problem. They say that Parle exiting from the city would give an impression that the State had militant unions.
Parle is India’s largest biscuit maker with 20 brands. It began operations in 1929 and Parle G is the fastest selling brand. It has plants in Rajasthan, Haryana,Bahadurgarh and Mumbai as well as another 75 units on contract.
In another related development, Toyota Kirloskar plant in Bidadi near here has decided to have a eight day no production holidays. It has 3000 cars lying in the factory for want of buyers. This holiday will hurt the daily wage workers. The company sees no reason to pile up cars till the existing ones are sold.
Indian automobile companies like Tata and M&M have already implemented the production holiday. The Japanese , Korean and UK car companies have slowed down production but are able to sustain as they have a good export market and Indian units are used to feed them.