Workers at Cochin Shipyard in India are unhappy over a proposed IPO which would see India’s government sell its entire state in the yard.
Trade unions are protesting the move, which would also see a fresh issue of over 2m shares, and are threatening an indefinite strike.
“We will make the public aware of the perils of the move by holding public meetings at Mattancherry, Kaloor, Tripunithura and Marine Drive to begin with. There will be a token strike and if the government fails to heed the warning, we will go on indefinite strike,” R. Chandrasekharan, president of the union organised Joint Action Front, told local newspaper The Hindu.
Madhu S. Nair, chairman and managing director of Cohcin Shipyard, told The Hindu the rationale behind the move was explained to the unions, commenting: “They are fully seized of the need for expansion. Only, they want the money required for this to be raised by other means.
“For us, the prudent method is to mobilise funds through a mix of debt and equity, not debt alone — which we fear will lead us into a debt-trap. As regards disinvestment, we told them that it is consistent with the stated policy of the government and that it would only be disinvesting 10% of its stake.”
Nair, who has been with Cochin Shipyard for 27 years, was appointed as chairman and managing director effective January 1.
