Atlas cycle Sahibabad laid off workers facing cash crunch
Famous brand in cycle- Atlas has shut their manufacturing activities in Sahibabad unit by declaring lay off in the factory on 3rd June. Causing job losses to around 700 workers. According to unconfirmed sources around 400 workers are on the company roll and another 300 are employed through contractors/indirectly.
And it all happened on world Bicycle day when in many countries cycle riding is being promoted again after seeing the negatives of auto vehicles to save environment, reduce pollution and taking care of heath.
Issuing a statement, the company said that was is not in a position to resume manufacturing operations due to financial constraints, and as such, it had decided to lay off its Sahibabad unit workers. Workers have been called everyday at factory gate to mark attendance. As per provisions of Industrial Disputes Act only those workers will be entitled to lay off compensation which equals to 50% of basic salary and DA. Who come and mark their attendance.
The Haryana-based company, which started manufacturing bicycles in 1951, had already closed down two units in 2014 and 2018. While in December 2014, its Malanpur unit in Madhya Pradesh was closed down, it suspended manufacturing at its Sonipat unit in 2018.
Following the closure of the Malanpur unit, the company had only two operational units – at Sonipat in Haryana and Sahibabad in Uttar Pradesh. But with the closure of Sahibabad unit, the company has closed down its last factory.
“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.
The company said that due to severe cash crunch, it was difficult for the company to even procure raw materials.