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Will TCL directors stay?
In the last Sunday BG, the business magazine decided to lead with a story headlined “Turmoil at TCL,” which reported three issues affecting the Claxton Bay-based cement producer:
• Last week, TCL directors officially received notice of a requisition by a group of shareholders—who now have the support of over 54 per cent of the total shareholding of the company—for the removal of six directors and their replacement with seven representatives of the majority shareholders;
• That on Friday TCL lost a major case in the Industrial Court involving the 2012 strike called by the Oilfields Workers Trade Union and the company was directed by the Court to increase the salaries of four classes of TCL workers by nine per cent. TCL was also ordered by the Industrial Court to make arrangements to pay arrears (also known as backpay) to the workers by August 8;
• TCL executed an increase in the price of a 42.5 kg bag of Premium Plus Cement by nine per cent on July 1. That price increase will take the price of a bag of cement, which currently sells for between $57 and $60, to between $62 and $65.40.
Now, in my view, the fact that TCL has been ordered to pay salary increases of nine per cent and backpay (by August 8) to workers for the 2009 to 2011 negotiating period may raise some concerns about TCL’s ability to continue in business for much longer.