The strike by 8,200 contract workers of the Vishakapatnam Steel Plant (VSP) demanding higher wages, increased allowances, bonus and medical facilities was called off on 16 June 2005 after the management agreed to consider the demands. The indefinite strike, which began on 2 June, had crippled production at the plant.

 

At present, the minimum monthly salary given to the contract workers is Rs 3,334. The management was not giving them even the minimum bonus of 8.33 per cent. The strike call jointly given by the Vishaka Steel Project Contract Workers Union (AITUC), Steel Contract Workers Union (CITU) and Contract Workers Union (HMS) came to an end with the intervention of the Deputy Labour Commissioner in a conciliatory meeting on 16 June with the management and union members. The management agreed for an interim relief of Rs 300 per month for all the contract workers.

 

“The management has agreed to give 8.33 per cent bonus from the current financial year,” says Adinarayana, the honorary president of the Vishaka Steel Project Contract Workers Union. A committee with representatives from the union, government and management has been formed to look into the wage structure and other demands of the workers. The contract workers did not have medical facilities. A decision has been taken to have a panel doctor for every 1,000 workers. “The doctors’ payment will be given by ESI and treatment charges will be jointly borne by ESI and the management with a minor share from workers. This share will be deducted from their salary,” says Adinarayana.

 

The management had resorted to many means to break the strike. They had declared the strike as illegal and had tried to intimidate the workers by threatening to cancel the gate passes issued to them for entering the plant.