On world bicycle day, Atlas Cycles shuts Sahibabad plant, announces temporary lay off of 1000 employees
Atlas Cycles shut down its manufacturing unit at Ghaziabad's Sahibabad on Wednesday and announced temporary layoff of about 1000 employees. Ironically, the decision came on World Cycle Day.
Atlas Cycles shut down its manufacturing unit at Ghaziabad's Sahibabad on Wednesday and announced temporary layoff of about 1000 employees. Ironically, the decision came on World Cycle Day. The company in a public announcement said that it is under heavy 'economic crisis' due to which it is not able to buy raw materials for the production of bicycles.
The order to shut down the Sahibabad plant came on Wednesday evening and the notice to declare layoff was pasted at the main gate of the production site. The workers, when they reached the office, were shocked to learn this and they lodged a protest regarding the decision. Some of them said that company’s production was good and they should have been informed about the layoff earlier.
“Post lifting of lockdown with effect from June 1, 2020, Sahibabad Unit of the company is not in a position to resume manufacturing operations due to financial constraints. Hence, the workforce of Sahibabad Unit of the company will be laid off with effect from June 3, 2020, till adequate arrangement of funds is made,” the company said in an official letter.
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Mahesh Kumar, a leader of the worker union from the unit told reporters that close to a thousand workers used to work in the factory.
"The company had never hinted us that it will be shut. On Monday and Tuesday, we worked. How can they suddenly ask us to sit at home? We will raise our voice against this decision," said Singh adding "all of us will come on the road because our situation was already not good due to lockdown,” he said.
Atlas was facing the financial problem for past several years forcing them to shut two of its unit in Madhya Pradesh and Haryana. This seems to be its last unit.
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