Elco Employees get One Month Salary, Malayali subcontractor blamed for the problem.

Malayali Workers threatened to commit suicide in Elco Premises

keralamonitor.com, February 6, 2002.

Fifty Indian workers who were brought to Muscat by Ms. J.V. International to work for Elco Industrial and Trading Company had a temporary relief because the company agreed to pay one months salary today. Some of the workers said they will commit suicide in front of the company, if they are not send to India or their payment is made. Nobody was coming forward to help the workers, who have been living a difficult life for the last several months.

One of the workers, Balan Pillai, Thoppil House, Paravoor, Kollam would have committed suicide if his friends did not interfere in times. "There is no meaning in continuing to live like this,' said he. However, the company's decision to make at least one month's payment has made the workers happy. The timely intervention of the Indian Ambassador has averted a crisis situation like the Stag Enterprises, where a Malayali worker reportedly committed suicide due to non payment of salary and other problems.

Even after working at 55 degree Celsius heat in the dessert for a project in the leading oil company there, the subcontractor who employed them on behalf of Elco did not pay their salary for several months. The recruiting agent, J.V.International, located at Govandi in Shivaji Nagar, Bombay took Rs.25,000 from each of them for getting such a job. In the case of three workers, the recruitment charge was Rs.35,000 because one more subagent was involved in their recruitment process.

Many of the workers were recruited from Bombay and brought on one months visit visa which was extended for one month. After two months, their visit visa could not be converted into work visas and all of them were send back to India. After a short gap, they were brought back again to Muscat on visit visa to work for Elco. Other workers were working on free visa. About 10 to 15 employees who have already resigned from the company are awaiting repatriation.

It was in September 2000 that the recruiting agents Rajagopal and Mr.Balan interviewed the workers in Bombay. Altogether 50 workers were brought from Bombay --most of them are from Kerala. Workers from Tamil Nadu, UP and Bihar are also victims. They worked for about sixteen months and got salary for nine months -- the company had some financial problems. Workers have to get amounts ranging from RO 800 to RO 2000 each. In addition, they have to get their air ticket, leave and pay fine at the rate of RO 15 per day for working without labour card and visa. They have complained to the Indian Embassy, the Labour Departments about non-payment of salary, non-payment of service benefits, non-renewal of labour card and sought help for their repatriation. Workers who are on visit visa approached the Immigration Department for help through the Indian Embassy, Muscat. Since they are illegal workers, they could not approach the labour court.

'There are more than two hundred workers in the company and none of them have their labour card,' said one Malayali worker. Even the company staff are not paid their salary regularly for the last four months, said one of them. For employers and contractors, if renewing labour card for 250 employees is avoided they can save than RO. 27,500 per year - equivalent to Rs. 34 lakhs. (at the rate of RO 110 per labour card.) In the case of fifty people employed by the subcontractor, the gain would be RO 5500 (More than six and half lakhs.) Due to this economics, small and medium sized companies follow this policy and divert the money to other profitable businesses. Many of such companies saved lot of money by sending the workers through the amnesty scheme because they did not have to pay any fine for the illegal workers. In the case of Elco, the company had some serious financial difficulties.

According to Elco General Manager, the problem occurred because the subcontractor K.V.Rajagopal, who employed the 50 workers has collected the money from the company and did not pay the workers. However, the subcontractor denied the company claim and said quoting a letter from the Elco Chairman Taki B.Suleiman dated January 29, 2002 that the company owes him RO 5,0000 (Indian Rupees 62 lakhs). 'As we understand this morning that your outstanding invoices that you claim are about RO 50000/- have not yet reached our Account Department and are still to be cleared of all disputes of claims major or minor. It has been discussed with the concerned persons in your presence that a fair amount of your invoices will be cleared for payment today," said a letter addressed to K.V.Rajagopal, Managing Director, Microtech, the subcontracting company.

"We will make same payment to you within a week to enable you to pay your work force. Furthermore, we will also arrange to send back 10 of your people on visit visa and will enable you to send the rest of your people by end of February 2002,' says the letter. Rajagopal says that he can send back all the workers after clearing their dues, once he gets the pending payment from Elco. But the workers alleged that similar promises made in the past were not fulfilled.

Thanks to the wide media coverage of the problem, the management agreed today to pay one months salary so that workers can meet their immediate requirements. Many of them have no contact with their family because there is no money to make a phone call or buy stamp. One of the workers said they have been living without tooth paste, soap, oil, clothes or any other basic facilities for the last several months. "Luckily I have managed to get a telephone card from the dustbin. I collected 20 telephone cards from the dustbin and tested all of them. Fortunately, one card had some balance and I could make a phone call ,' he said.

Another worker, Jacob Thadathil got two telegrams from his village in Kerala - informing him about his mothers and grand mother's death. On both the occasions, he requested the company to send him to Kerala, without any result. Similarly, Ramesh from Kuzhavallore, Chenganoor produced two medical certificates from the company doctor about severe chest pain. However, he could not go to India for treatment. However, one cancer patient, Mr.Nair from Calicut, was recently sent back to Kerala for treatment. (keralamonitor.com)