Nalco restarts mines with cut in working hours

KOLKATA: Nine days after it was hit by a daring Maoist strike, National Aluminium Co (Nalco), the country’s largest aluminium producer, finally resumed production at Damanjodi bauxite mines on Wednesday. However, this was not before the Nalco management gave in to workers’ demand for truncated working hours. Nalco has a 500-strong workforce at its mines. "We have restarted operations at the mines this morning after the entire area was declared safe by the bomb squad of the state police force. Transportation of bauxite is also taking place. The conveyor cable belt too has started working around 11 am after it was declared safe on Tuesday evening," a top Nalco official told ET from Damanjodi. Significantly, Nalco’s mine workers’ union have refused to work between 6 and 10 pm as part of their demand for truncated working hours during the evening shift. This, in turn, would lead to reduction in production targets. Since incentives are linked to achievement of these targets, it could consequently lead to lower incentives payouts. "We have principally agreed to the union’s demand, which is subject to approval from the company’s top brass," the official added. Accordingly, restoration of production at the mines has come at a heavy cost for Nalco, which dominates global trade in alumina at the London Metal Exchange. The aluminium major has not only taken a hit in mine output --Damanjodi mines produce 14,000 tonnes of bauxite daily-- but also in terms of a dent in employee morale. "We’ve lost nine days production which amounts to roughly around 1 lakh tonnes of bauxite as result of the disruption in mining activity," the official added. The attack on Nalco’s mines seems to have triggered off a first ever move to undertake a comprehensive security review across all mineral industries by a joint team of union mines and home ministry.