Due to intense labour issues Varun Beverages Ltd was already in lockout from March 22.But in sudden turn of events due to failure in the talks with labour unions, the franchise of Pepsi Co as announced its intention of closure with a notice as below “M/s Varun Beverages Ltd manufacturing carbonated soft drinks and packaged drinking water, is intended to be closed down under section 25-O of the Industrial dispute Act 1947 (Act 14 of 1947) and necessary application is filed to the Government, of Kerala on 22.09.2020”.
Employees of the unions affiliated to CITU, INTUC and BMS were on protest from last December, demanding wage hike and better service conditions for contract labourers. With the protest intensifying and contract workers also joining the strike, the management declared a lockout from March 22.
The notice also stated that all affected employees/contractors shall be paid their respective dues/compensation in accordance with the provisions of Section 25-0 (8) of the Industrial Disputes Act 1947.
It was to be noted that by May, Kerala Finance Minister Thomas Isaac announced that Kerala Government is on the verge of exhausting its funds, and it won’t be able to pay staff salaries in 2 months
With clear sentiment against entrepreneurship by pursuing the socialist path,700-odd employees who are directly or indirectly associated with the company will be affected the most.