CorroHealth layoffs; Employees denied entry in office, stage protests

KOCHI: Protests intensify over the mass layoffs by US-based CorroHealth Company. Employees who arrived at the Kozhikode and Kochi offices were denied entry, and various organizations including AITUC have stepped forward staging protests. The protests demand to allow the employees to enter the office. Employees, including pregnant women, are waiting in the scorching sun, to get inside. The employees said they hope to get justice.

The incident happened amidst discussions between labour secretary, Labour Minister Bindu Krishna and the employees. Although the company had promised to temporarily freeze the layoff process in the previous discussion, the employees have been worried that it has backed down from this.

The company terminated nearly 800 employees from its Kozhikode and Kochi offices without prior notice on Friday. The management asked the employees who came for work to immediately log out of the system and informed them that the offices in Kerala were being closed permanently.

The concerned employees then informed the MLA and others. Following that, the district officer and trade union leaders intervened in the matter. The company was asked to temporarily freeze the dismissal process. However, CorroHealth continues to take a hardline stance on its mass layoff measures.

Although the company claims that the action is in accordance with the new labor code, legal experts point that since the new labor codes have not yet come into full effect, it is illegal under the Industrial Disputes Act (1947) to conduct mass layoffs in an organization with more than three hundred employees without prior permission from the government.

In the meantime, the company deposited two to two and a half months' salary into the employees' accounts as compensation. The amount was paid with the condition that upon receiving this amount, the employees would lose the right to take legal action against the company in the future.