Production lines remain still at a Zenotech plant in Hyderabad, India, as its roughly 200 workers have declared an "indefinite strike." The workers are protesting the company's failure to pay salaries because of a non-payment of dues by majority shareholder, Ranbaxy, in April, as MoneyControl reports.
However, bigger issues underlie the lack of take-home pay. Zenotech charges that Ranbaxy has not lived up to the commitments made when it acquired the company. And that may be true, given Ranbaxy's acquisition by Daiichi Sankyo shortly thereafter. Subsequent changes to the board left Zenotech low man on the totem pole, facing unfulfilled promises by Ranbaxy, it says, and a lack of confidence in its future.
Zenotech manufactures three biotech and 10 oncology products. At the close of last week, the two sides were talking during the third consecutive day of the strike. Employee demands include the business that Ranbaxy said it would commit to Zenotech (about $3.4 million annually) and some management changes.
Jayaram Chigurupati, Zenotech founder, is currently seeking to buy back shares from Ranbaxy and Daiichi.