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Hindustan Aeronautics Ltd braces for staff strike over wage revision

Hindustan Aeronautics Ltd (HAL) is bracing for an indefinite strike by its 20,000 employees over wage revision and other demands.

HAL braces for staff strike over wage revision
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Published : Oct 14, 2019, 3:20 PM IST

Updated : Oct 14, 2019, 4:12 PM IST

Bengaluru: The state-run Hindustan Aeronautics Ltd (HAL) is bracing for an indefinite strike from Monday by its 20,000 employees over wage revision and other demands, a union official said on Sunday.

"As talks and reconciliation efforts with the management failed on our demands, especially wage revision, we are going ahead with the indefinite strike from Monday as per the notice we served a fortnight ago (September 30) in compliance with the labour laws," HAL's 9 trade unions' general secretary S. Chandrasekhar told IANS here.

The management, however, said it was making efforts to avert the strike at all its 9 locations across the country over wage revision retrospectively since January 1, 2017.

"Conciliation proceedings commenced at all locations and the labour authorities have advised the unions to desist from the strike and agree to a solution in consultation with the management," the city-based defence behemoth said in a statement on Sunday night.

The 55-year-old aerospace major has about 20,000 employees in 5 production complexes in Bengaluru, Hyderabad, Koraput in Odisha, Lucknow and Nashik in Maharashtra and 4 research and development (R&D) centres across the country.

"The management's refusal to consider our demands has forced us to begin the strike from Monday at all the 9 locations. We have appealed to all our workmen and members to participate in the strike," asserted Chandrasekhar.

Hindustan Aeronautics Ltd employees on indefinite strike

To defuse the situation, the company offered to enhance allowances under cafeteria system at 22 per cent for workmen in scale 1 to 10-20 per cent for workmen in special scale as against the uniform rate of 19 per cent offered earlier.

"We apprised the unions of the ill-effects of resorting to strike, jeopardising the interest of the employees and the organization," said the company in the statement.

The management also offered a revised rate of fitment benefit at 11 per cent.

The wage revision is due from January 1, 2017, as the previous two revisions were in 2012 and 2007 for 5 years. Revision of executives' salaries was also due to the same date (January 1, 2017) and implemented in November 2017 as per the directive of the Department of Public Enterprises (DPE).

Read more: IRCTC makes grand debut on bourses, doubles over issue price

Bengaluru: The state-run Hindustan Aeronautics Ltd (HAL) is bracing for an indefinite strike from Monday by its 20,000 employees over wage revision and other demands, a union official said on Sunday.

"As talks and reconciliation efforts with the management failed on our demands, especially wage revision, we are going ahead with the indefinite strike from Monday as per the notice we served a fortnight ago (September 30) in compliance with the labour laws," HAL's 9 trade unions' general secretary S. Chandrasekhar told IANS here.

The management, however, said it was making efforts to avert the strike at all its 9 locations across the country over wage revision retrospectively since January 1, 2017.

"Conciliation proceedings commenced at all locations and the labour authorities have advised the unions to desist from the strike and agree to a solution in consultation with the management," the city-based defence behemoth said in a statement on Sunday night.

The 55-year-old aerospace major has about 20,000 employees in 5 production complexes in Bengaluru, Hyderabad, Koraput in Odisha, Lucknow and Nashik in Maharashtra and 4 research and development (R&D) centres across the country.

"The management's refusal to consider our demands has forced us to begin the strike from Monday at all the 9 locations. We have appealed to all our workmen and members to participate in the strike," asserted Chandrasekhar.

Hindustan Aeronautics Ltd employees on indefinite strike

To defuse the situation, the company offered to enhance allowances under cafeteria system at 22 per cent for workmen in scale 1 to 10-20 per cent for workmen in special scale as against the uniform rate of 19 per cent offered earlier.

"We apprised the unions of the ill-effects of resorting to strike, jeopardising the interest of the employees and the organization," said the company in the statement.

The management also offered a revised rate of fitment benefit at 11 per cent.

The wage revision is due from January 1, 2017, as the previous two revisions were in 2012 and 2007 for 5 years. Revision of executives' salaries was also due to the same date (January 1, 2017) and implemented in November 2017 as per the directive of the Department of Public Enterprises (DPE).

Read more: IRCTC makes grand debut on bourses, doubles over issue price

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Reliance to swap diesel for Venezuelan crude oil
          New Delhi, Oct 14 (PTI) Reliance Industries will pay for Venezuelan crude oil via exports of diesel in a barter arrangement as it resumed taking supplies from the US sanctions-hit Latin American nation after a gap of four months.
          Although US oil sanctions imposed on Venezuela in January 2019 have no direct secondary component, oil companies such as Reliance Industries (RIL) that have a significant US presence have curtailed their commercial ties with the Opec nation.
          Reliance had in March capped oil purchases from the Latin and halted selling diluent.
          "RIL has been supplying permitted products like diesel to Venezuela and, hence, is able to recommence crude sourcing. These are actions compliant to US-sanctions as crude sourcing against the supply of permitted products is allowed," a company spokesperson said.
          Following US sanctions, companies had shunned direct purchases in favour of secondary market sourcing through Russia's state-controlled Rosneft, which is now the primary supplier of Venezuelan oil.
          US President Donald Trump had in January slapped oil sanctions on Venezuela in a bid to put pressure on its socialist President Maduro to step down.
          The sanctions, however, do not ban importing crude oil from Venezuela, but barred supply from the US of the diluents that must be blended with the extra-heavy oil from Venezuela's Orinoco Belt so it could flow through pipelines.
          RIL, which operates twin refineries with a capacity to process 1.36 million barrels per day of crude oil at Jamnagar in Gujarat, had a contract to buy around 3 million barrels of crude oil from Venezuela a month, which was reduced to about 2 million barrels by March 2019.
          Venezuela's state-owned oil company, PDVSA, has been placed on the US Treasury Department's Specially Designated Nationals List, which generally prohibits American citizens from dealing with named firms or individuals. This has resulted in international banks and shipping companies as well as Reliance ceasing any transactions.
          These restrictions come into force on March 29 after an eight-week winding down period for contracts that were already in effect.
          In March, RIL had stated that its "US subsidiary has completely stopped all business with Venezuela's state-owned oil company, PDVSA, and its global parent has not increased crude purchases."
          "In addition, since sanctions were imposed and contrary to some news reports, Reliance has halted all supply of diluent to PDVSA and will not resume such sales until sanctions are lifted," it had stated.
          Oil from the Orinoco needs to be diluted with lighter grades to reduce its viscosity so as to allow its flow through pipelines to the coast for export or processing.
          Besides Reliance, Rosneft-backed Nayara Energy is the primary buyer of Venezuela oil in India, because their advanced refining systems can process the thick Venezuelan grade into high-value fuels such as gasoline, low-sulfur diesel and jet fuel.
          Venezuela shipped around 3,08,000 barrels per day of crude during January-August to India. PTI ANZ BAL
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Last Updated : Oct 14, 2019, 4:12 PM IST
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