Financial Daily from THE HINDU group of publications
Thursday, Jun 24, 2004
Financial Daily from THE HINDU group of publications Thursday, Jun 24, 2004 |
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Corporate
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Sick Units Dunlop plans to re-open Ambattur factory — Settles employees' dues R. Balaji
Chennai , June 23 DUNLOP India Ltd has settled the wage arrears of its workers at the Ambattur factory and plans to reopen in six months, according to Dunlop Factory Employees Union representatives. The factory paid each worker a consolidated amount of about Rs 26,000 on Monday. A voluntary retirement scheme that will give workers Rs 70,000 each is also on the cards, according to an agreement finalised last week, sources said. Dunlop is talking to a leading tyre manufacturer to produce tyres for it. Production could commence in six months, they said. Company officials could not be contacted for comment. The agreement signed in the presence of the Labour Department officials covers over 1,700 workers. The retirement scheme will cover 300 of these workers. The State Government is also committed to assisting in reopening the factory, they said. Dunlop is negotiating with Apollo Tyres to manufacture tyres under the Apollo brand. Dunlop had attempted to reopen operations on earlier occasions. In 2002, the company had offered a retirement scheme and agreed to settle back wages. However, the implementation was delayed and the wage dues, which were to be paid in six instalments, were not given. At that time Dunlop planned to manufacture tyres for one of its sister companies, the Karnataka-based Falcon Tyres. Last year, the company also discussed with JK Tyres and Apollo tyres to make tyres for them. Dunlop India Ltd suspended operations between 1998 and 2000 following a fund crunch. Then it reopened with a `holding operation' but closed down a year later, in September 2001. The company is awaiting implementation of a draft rehabilitations scheme that is pending before the Appellate Authority for Industrial and Financial Reconstruction.
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