Karnataka: Technicolor employees, IT Union file industrial dispute over mass layoffs

A delegation of Technicolor employees, along with office bearers of KITU, met State Labour Commissioner HN Gopalakrishna

Technicolor employees and Karnataka State IT/ITeS Employees Union (KITU) have filed an industrial dispute with the State Labour Department in Bengaluru against mass layoffs on March 4.

A delegation of Technicolor employees, along with office bearers of KITU, met State Labour Commissioner HN Gopalakrishna and formally raised an industrial dispute against the management over mass layoffs and the shutdown of company’s operations in India.

Following this, the labour department issued a notice to the company and scheduled the first conciliation meeting between the company, employees, and the union for March 11.

Also, read: Over 2,000 Technicolor India artists left jobless as firm stops operations, offers no clarity on pay

Suhas Adiga, general secretary of KITU, said, "Around 3,200 employees in India, including 2,500 in Bengaluru, have been affected by these mass layoffs. This is in violation of Chapter V-B of the Industrial Disputes Act. Moreover, salaries for February are also pending."

He further added, "As many as 98 employees have come together to form a general body and have formally raised an industrial dispute, submitted relevant claims and documents."

The Union argues that since Technicolor India Pvt Ltd is registered under the Companies Act, it is bound by the applicable labour laws.

"Any closure, retrenchment, or layoff in establishments employing more than 100 workmen is governed by Chapter V-B of the Industrial Disputes Act. Since this is not a clear case of closure, the provisions regarding layoff or retrenchment should apply, requiring government permission. As the company has not sought such permission, the services of all affected workmen should be deemed to continue, making the layoffs unlawful," KITU stated in a letter to the labour department.

According to the complaint, Technicolor India's Managing Director communicated the suspension or closure of operations to employees via social media on February 27.

“Subsequently, each employee received an experience letter signed by Vikram Kapur, vice president, Technicolor (Asia Pacific), stating that they were relieved from their duties upon securing re-employment. This communication acknowledges continued employment and contradicts a formal termination,” the Union said.

Headquartered in Paris, Technicolor Group is one of the world's largest animation and visual effects firms. Its India division has contributed to major Hollywood projects, including Mufasa: The Lion King, Puss in Boots, Madagascar 3, and Kung Fu Panda.

While the company announced the closure of its US operations on Monday, no official communication has been made regarding the closure of its India operations. In India, Technicolor has offices in Mumbai and Bengaluru, employing over 2,000 people. The company has a global workforce of over 10,000 across France, the US, Canada, and India.

Also, read: Shattered Frames: Technicolor layoffs expose deepening crisis in India's VFX and animation industry