The Hindu Business Line : Dunlop to strike wage pact in Sahagunj next week

THE Ruia group-controlled management in Dunlop India is expecting to strike a wage agreement with labour unions at the Sahagunj facility in West Bengal early next week.

This will be followed by a similar exercise at Ambattur in Tamil Nadu. The total workers' liabilities are estimated to be Rs 40-45 crore.

The company has also agreed to enhance the compensation package for past dues of salaries and wages and pay the workers' liabilities, including the VRS compensation package in lump sum.

Dunlop India had previously proposed to pay the VRS package in instalments.

Talking to newspersons after meeting the State Commerce and Industry Minister, Mr Nirupam Sen, here on Thursday, the Ruia group Chairman, Mr P.K. Ruia, said that he was extremely happy with the proceedings of the negotiation so far.

Both the Dunlop management and labour unions met Mr Sen to resolve pending issues over the wage agreement. It is learnt that the trade unions had asked for an enhancement of the VRS package. The Dunlop management had earlier proposed to pay a maximum of Rs 75,000 each to approximately 1,700 workers (1,400 at Sahagunj and 300 in Ambattur) who would not be absorbed now. Most of those workers, who will be separated, fall in the unskilled category.

While a decision on the VRS package is still pending, the company management has agreed to increase payments towards wage arrears from the initially proposed Rs 20,000 to Rs 25,000 for the Sahagunj facility.