Kochi , 10 July (H.S.):

A conciliation meeting convened by Kerala Labour Minister Bindhu Krishna to resolve the mass layoffs at US-based medical coding company CorroHealth ended without a settlement on Friday, with both sides agreeing to hold another round of discussions on July 20.

Speaking after the meeting, the minister said the state government had made it clear that CorroHealth's explanation for the layoffs was unacceptable. She said the government had examined the company's financial position and found that it continued to be profitable.

CorroHealth is an international company and not one operating only in a single region. Therefore, its claim that the layoffs were necessitated by a shortage of work cannot be accepted, Bindhu Krishna said.

The minister also criticised the company's handling of the retrenchment, saying the manner in which employees were treated was an insult to the dignity of Kerala's workforce. She said the government wanted the company to continue its operations in Kerala while maintaining the status quo, warning that legal action would be initiated if the company failed to respond positively. CorroHealth has agreed to communicate its decision on the issues raised by the government at the next meeting on July 20. However, no decision was taken on allowing the terminated employees back into the company's offices until then.

Participating in the meeting virtually, CorroHealth representatives said the retrenchment was part of a global cost-cutting exercise triggered by international economic challenges. The Texas-headquartered company maintained that similar layoffs had been carried out at its facilities outside Kerala as well, including in the United States.

Employee representatives and trade union leaders insisted that any retrenchment should comply with labour laws, including prior notice, statutory benefits and adequate safeguards for workers.

The minister reiterated that the government was willing to extend all possible support to ensure CorroHealth continued its operations in Kerala.

The meeting was attended by MP Hibi Eden, MLA Uma Thomas, Ernakulam District Collector Priyanka G., the District Labour Officer, employee representatives from Kochi and Kozhikode, and trade union leaders.

CorroHealth recently terminated more than 800 employees — around 600 from its Kochi office and about 200 from Kozhikode — without prior notice. Employees alleged they were informed through an office announcement that they need not report for work from the following day and were later handed termination letters on plain sheets of paper without the company's official letterhead or logo.

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Hindusthan Samachar / Arun Lakshman