The Hindu Business Line : Apollo Tyres VRS deal for Kerala units

APOLLO Tyres Ltd (ATL) has decided to reduce workers strength in its two factories in Kerala and in this connection the management would be holding discussions with the trade unions some time next week.

Trade union sources told Business Line that the company had announced a VRS package last Saturday under which the company targeted to reduce the number of regular employees to 1,900 from 2,500 in its main tyre-manufacturing unit at Perambra in Thrissur district.

The number of workers in its unit at Kalamassery near here would be brought down to 1,100 from the present 1,500.

The idea behind the move is to reduce manufacturing cost. The requirement of additional workers, when needed, would be met by deploying contract labour at a comparatively low cost, sources said.

According to sources, once the VRS is fully implemented the monthly outgo on salary/wages would come down by 50 per cent.

On the other hand, there would be substantial savings on wage hikes, which the company has to incur after periodical long-term wage settlement agreements with the trade unions.

The VRS option is open to all irrespective of age, the sources said adding that they were studying the proposal and would present the views of the workers during the discussions.

Apollo's Perambra unit, which started commercial production in 1977 with a capacity of 54 tonnes, had increased its capacity to 180 tonnes a day, from which it is being raised now to 220 tonnes.

The expansion is scheduled to be completed in three months.

The capacity of Premier Tyres at Kalamassery, which was taken over by the company in 1995, is also being raised from the present 51 tonnes a day to 100 tonnes.