Reliance fires more retail workers
03 Oct 2007
New
Delhi: According to a Chinese proverb, sometimes you need to take a step back,
to take a leap forward. Reliance Industries seems to be doing just that with its
retail venture, with news all around about pink slips going around. Now, it has
sacked another 150 grocery workers in communist-ruled West Bengal.
Having been the extremely visible target of opposition from small traders who fear losing their livelihoods, Reliance has shelved its retail plans for the Indian states of Uttar Pradesh and Orissa, with West Bengal joining their ranks with the 150 pink slips. Opposition to the retail venture is especially important to politicians, who are worried about losing votes in the face of possible mid-term elections.
According to company sources, around 150 contract staff were let go. Reliance Retail had earlier suspended plans to open stores in West Bengal, given the communist government''s "strong opposition" to its plans of around 145 grocery stores and other retail operations in West Bengal.
Organised retail or chain stores accounts for just four percent of India''s 350 billion dollar retail industry and small "mom and pop" retailers fear they will be undercut and forced out of business.
What
remains to be seen, is how much of a step back would be needed for the company
to reverse its fortunes in the sector.
