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Mining firm in Goa seeks govt nod to lay off 350 permanent employees

This is for the first time that a mining company in Goa has filed an application seeking permission from the government for laying off of permanent employees in the state where mining operations are stalled following a Supreme Court order.

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layoffs, pink slip, job loss

A Goa-based mining company, Chowgule and Company Private Ltd, has sought permission from the Ministry of Labour and Employment to lay off 347 permanent employees in the state.



"Chowgule and Company Private Ltd has filed an application under the section 25 N of Industrial and Disputes Act 1947 in the Ministry of Labour and Employment for retrenchment of 347 permanent employees. It is among the top three mining companies in the state," the president of Goa Mining People's Front (GMPF), an umbrella organisation of the people dependent on mining, Puti Goankar, told PTI after the first hearing of the matter at the ministry here.

There will two more hearings tomorrow and day after, he said.

This is for the first time that a mining company in Goa has filed an application seeking permission from the government for laying off of permanent employees in the state where mining operations are stalled following a Supreme Court order.

Section 25 N of Industrial Disputes Act, 1947, deals with the pre-requisite conditions for retrenching workmen employed in an industrial establishment. The conditions include that a workman, who is in service for over an year, will have to be served with a three-month notice in writing before being terminated.

Goankar said he is hopeful that a decision will come in favour of the workers as he believes that "any decision in favour of the mining firm will just add salt to the wounds of the workers result of which will be other (mining) companies will file similar applications.

"In our response we have urged the ministry to take immediate steps to commence mining operations in Goa...this is necessary to save life of about lakhs of people." 

When contacted an official of the mining firm, he refused to comment.

The president also informed that considering the seriousness of the situation in Goa, state chief minister Manohar Parrikar will be meeting the Prime Minister Narendra Modi later this week to discuss the issue of ban on mining in Goa.

In its February 7 judgement, the Supreme Court had quashed the second renewal of iron ore mining leases given to 88 companies in Goa in 2015. The court had granted time till March 15 to the companies to manage their affairs.

The sole motive of the companies behind the commercial activity was profit maximisation and no social purpose was attached to it, the court had said.

As per the industry estimates, about 2 lakh people are dependent on the mining sector in Goa. It provides 60,000 direct jobs and indirect to the rest. 

"Those who had indirect jobs have already been asked by the companies to stop rendering their services. If permanent workers lose their job, there may be state-wide protest. Lakhs of people who were indirectly linked to the mining sector will also join the agitation," Goankar said.

Ever since mining operations have been stopped, political and labour union leaders from the state are running from pillar to post to find a solution to the problem which has taken jobs of lakhs of people in the state.

Many leaders from the state have submitted their requests with the office of Goa Chief Minister and Union Ministries of Mines and Road and Transport to find a solution the problem.

Earlier, Goa Mineral Ore Exporters' Association (GMOEA) had said that stopping of mining operations can result in large-scale job loss and about Rs 3,400 crore revenue loss to the state exchequer.(PTI).



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