MISSCOMMUNICATION
The reason news of the Coal India. Recent IPO is a great welcome, but what is disturbing is the opportunity lost out by the employees who were offered shares at 5% less cost. The reason for this being is that the Labour Union was against this the company becoming an IPO and to show this it refused to buy any of the shares.
I have always disapproved the government’s disinvestment in any public company, simply because that was the one defense that prevented a full scale lash of the western economic crisis. With the help of a balanced mixed economy of public and private companies such a crisis being created in India can be averted. However becoming an IPO this public company has opened itself up to scurrility and at the same time it is still controlled by the government.
However I am deeply disappointed by the reaction by the labour. To some extent the blame must go to the management who has failed to communicate properly to the labour would mean and the opportunity it offered of 5% less the cost of shares which would reap so much more.
Such a result of the IPO will only set to harden the relation between the management and labour.
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