Kerala Layoffs: CPI(M) Urges State Action After CorroHealth Fires 800
The Communist Party of India (Marxist) [CPI(M)] has called for urgent state government intervention following mass layoffs by US-based CorroHealth Infotech Private Limited in Kerala. In a statement on Saturday, CPI(M) Ernakulam district secretary S. Sathish termed the dismissals 'highly objectionable' and demanded strong protests to protect workers' rights.
According to the party, the company laid off approximately 600 employees from its Palarivattom office in Kochi and another 200 from its Kozhikode office without prior notice on Friday, July 3. Employees reportedly learned of the layoffs only upon reporting for work that day.
CorroHealth, which provides medical coding services to American healthcare firms, has not explained why only its Kerala offices were shut while its facilities in Chennai and Noida continue to operate, Mr. Sathish noted. He argued that since the new labour codes are not yet in force, the dismissals without prior permission are illegal under the Industrial Disputes Act, 1947.
The company has offered three months' salary as severance, which Mr. Sathish said violates labour laws and workers' rights. The CPI(M) has urged the state government to investigate the layoffs and take appropriate action.
As of now, CorroHealth has not issued a public response regarding the closures. The layoffs have sparked concerns about job security in Kerala's IT-enabled services sector.
