Steps Taken To Try And Solve Crisis At Muthoot Finance: Kerala CM Pinarayi Vijayan
An advertisement for Muthoot Finance Ltd. is displayed on a wall in a branch in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)  

Steps Taken To Try And Solve Crisis At Muthoot Finance: Kerala CM Pinarayi Vijayan


Kerala Chief Minister Pinarayi Vijayan on Monday said the state government has taken necessary steps to try and solve the crisis at Muthoot Finance Ltd., The gold loans firm is facing a protest by a section of workers demanding a revised salary structure and other benefits.

During his weekly television interaction show Naam Munnott, Vijayan said the issue needs to be discussed by both sides and the government would provide full support for that.

"The labour minister had called a meeting of both the sides, but the company officials did not attend it,” the Kerala chief minister said. “Muthoot is a well known company in the country. The government wants to find an amicable solution. At the same time, the interests of the employees must also be considered.”

The Kerala High Court had earlier directed state police to provide protection to those Muthoot Finance employees who were willing to work at the company’s offices despite the protests.

Various offices of the gold loans firm have witnessed protests since Aug. 20 by a section of employees, allegedly supported by the Centre of Indian Trade Unions. These employees had earlier said the protest was against the company's alleged anti-labour stance.

Also read: Muthoot Finance Snaps Losing Run as CEO Sees Little Protest Pain

George Alexander Muthoot, the managing director of Muthoot Finance, had recently staged a "sit-in", alleging that outsiders were creating trouble in his company "without any reason". He had also threatened to close all strike-hit branches of the company.

On Monday, Muthoot Finance shares rose 3.73 percent to Rs 607.15 apiece on the BSE while the benchmark Sensex gained 0.44 percent to end the day at 37,145.45 points.

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