A minister-level conciliation meeting between the Kerala government and CorroHealth over the company’s proposed suspension of operations in the state ended without a resolution on Friday, with the US-based medical coding firm refusing to withdraw its decision citing global economic challenges.
The standoff has left the future of more than 800 employees at CorroHealth’s Kochi and Kozhikode centres uncertain. However, the state government said efforts to prevent the closure would continue, with another round of discussions scheduled for July 20, when senior company officials from the US are expected to present a detailed proposal.
Labour Minister Bindhu Krishna said the government had offered all possible support, including infrastructure assistance, to help the company continue its Kerala operations. She said the state’s priority was protecting jobs and questioned the legality of terminating the entire workforce without following required statutory procedures.
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CorroHealth attributed its decision to an international economic slowdown, policy changes in the US and a decline in business contracts. However, government representatives, including Hibi Eden MP, Uma Thomas MLA and employee representatives, questioned why only Kerala operations were being affected while the company continued elsewhere.
Eden alleged that the company’s decision contradicted its earlier appreciation of Kerala’s skilled workforce, pointing out that employees from the state had played a key role in training teams in other locations. He also questioned the company’s financial reasoning, citing its reported growth and profits.
The government highlighted that CorroHealth’s Kerala operations had expanded significantly due to the contribution of local talent. Officials said several alternatives were discussed, including transferring additional work to Kerala centres, redeploying employees to other branches and exploring ways to avoid mass layoffs.
The meeting also saw disagreement over the company’s decision to keep employees away from workplaces until the next discussion. The government demanded that employees be allowed to return to work during the negotiation period, but the company maintained its position.
On compensation packages, the Labour Minister said the government’s immediate focus was on retaining the company and protecting employment rather than discussing severance benefits.
She added that Kerala would not allow labour laws to be bypassed or the dignity of workers to be compromised, warning that legal action could be considered if necessary. The government said it would continue efforts to find a solution during the next round of talks on July 20.
