Korba, July 5, 2024 – Bharat Aluminium Company Limited (Balco), once a beacon of public sector success, now faces intense scrutiny and conflict post-privatization. Renowned for its contributions to specialized aluminum alloys and India’s defense sector, Balco under Vedanta Group’s ownership is now marred by allegations of employee exploitation and environmental misconduct.
Wage Agreement Ignites Employee Unrest
The 11th wage agreement at Balco has intensified tensions between employees and management. The Balco Employees Union (BMS) and the Aluminium Employees Union (AITUC) have condemned this agreement as illegal and anti-worker. The BMS alleges that Vedanta management violated the Industrial Disputes Act, 1947, in executing this agreement. Consequently, the number of permanent employees has drastically reduced, while contract labor has seen a sharp rise.
Sharp Decline in Permanent Workforce
Balco, which once employed 7,000 permanent workers, now operates with only 700 permanent employees. Meanwhile, the number of contract workers has surged to 7,000. This shift highlights a blatant violation of Balco’s existing employee recruitment policy. Management has placed excessive pressure on workers to increase production capacity, fostering unfair labor practices.
Canteen Charge Hike Sparks Outrage
The wage agreement includes a 20% hike in canteen charges, impacting over 7,000 workers, while the allowance increase benefits only the 700 permanent employees. This not only violates the Factory Act but also demonstrates management’s disregard for employee welfare. The hike imposes a significant financial burden on temporary and contract workers, who already earn minimal wages.
Environmental Violations and Social Backlash
Since privatization, Balco has been embroiled in numerous controversies, including the closure of the Bidhanbag unit and alumina refinery, the collapse of chimneys, unauthorized use of forest land, and environmental pollution. Management’s illegal dumping of ash and non-compliance with environmental standards have tarnished the company’s image. Local communities and environmental organizations have repeatedly protested, but management has taken no substantial steps to address these issues.
Management’s Neglect and Failures
Under Vedanta’s management, Balco’s golden legacy has come to a tragic end. While senior management claims increased production, the neglect of employee and community welfare is evident. Management has imposed future production capacity targets on current employees, leading to forced labor classifications. Additionally, the right to change standard operating procedures (SOPs) and the authority to transfer employees to any entity constitute unfair labor practices.
Disciplinary Actions Raise Concerns
The BMS has also raised concerns about management placing the burden of product quality rejections on employees, leading to disciplinary actions. Employees are being held accountable for quality issues that stem from management and production process flaws, increasing insecurity and dissatisfaction among the workforce.
Shift Towards Indirect Employment
The EIA report issued during Balco’s expansion project claimed that 3,000 employees would be employed upon completion. However, the 11th wage agreement states that current employees will strive to meet future production goals. This suggests Balco management’s policy of converting direct employment into indirect employment.
Uncertain Future for Balco
The future appears bleak for Balco’s workers, local community, and residents. The golden legacy has ended, leaving only hope that the future will bring better prospects for Balco. However, current circumstances cast doubt on this hope. Vedanta management’s policies and their failure to fulfill promises have plunged the company into crisis.
Balco’s transformation, characterized by increased production and economic gain, has come at the expense of employee welfare and environmental integrity. It remains to be seen whether Balco can regain its former glory or continue to struggle under the weight of its current challenges.
