Hindustan Motors makes interim payment to workers

India's oldest carmaker Hindustan Motors, which declared suspension of work at its Uttarpara plant on May 24, today made an interim payment to workers.

The company paid Rs 7,000 each to around 2,500 workers with the total outgo touching Rs 1.8 crore, sources in Hindustan Motors told PTI.

The money was credited to the bank accounts of workers, they said.

The sources said that the company had to arrange funds since there was no cash earnings as sale of Ambassador cars had dwindled resulting in zero production of the iconic brand.

The West Bengal government in a bipartite meeting held last Thursday asked the company management to pay workers as they were facing a salary backlog of nearly six months.

The government was scheduled to hold another bipartite meeting with the management tomorrow to ascertain the future of the company.

The management was forced to declare suspension of work at the plant because of severe lack of demand and strained cash flow.

The company was also looking for a strategic investor for the revival of the Uttarpara plant.

Promoter C K Birla had stepped down from the company's board as chairman, followed by the resignation of CEO and MD Uttam Bose.

Moloy Chowdhury was appointed as acting CEO of Hindustan Motors.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Amidst Sino-Indian bonhomie, the Tibet issue cannot be wished away

    Tibet did not figure in the three-day high-level meetings between India and the People’s Republic of China (PRC).

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: Intertemporal choices

Intertemporal choice is the study of the relative value people ...

Parvez Imam

Why we all have blood on our hands

What does the Jammu and Kashmir flood make us think? ...

Dharmendra Khandal

The peculiar possibilities of animal poop

You can tell a lot about an animal by its ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture