The Hindu Business Line : Dunlop's Ambattur unit wage pact to be signed in a week

, THE much awaited wage pact at the Ambattur facility of Dunlop India Ltd, to be signed in a week, will come up with a separate productivity norm also to be agreed upon by the management and the trade unions.

The unit is expected to reopen in three to four months after the wage pact comes into effect.

As far as the Sahagunj facility of the company in West Bengal is concerned, although an MoU on a wage pact has been signed, the formal agreement is to materialise as the trade unions had raised several objections to the productivity norms drawn up by the Ruia-controlled Dunlop management.

According to sources, the management is considering alternative reopening plans for Sahagunj.

"The West Bengal Government has been extremely co-operative to us so far. However, we have certain differences with the workers' union at Sahagunj. We hope that it will be resolved shortly," a company official said.

On the management side, a core team of seven heads of operations, projects, marketing, etc., is being recruited. This apart, a team of 15 to 20 zonal and regional heads will also be recruited in phases. A chief executive officer for the company is also being appointed.

Raising funds: The company is also to sewing up finances worth Rs 350 crore mostly from overseas agencies. The funds, it is stated, would be sufficient to meet long and short-term requirements of modernisation and meeting past liabilities. Progress has also been made in negotiating the settlement of bank liabilities.

On the operational front, Dunlop is in the process of finalising its modernisation plan, which is due to be placed before the Board for Industrial and Financial Reconstruction on March 28.

"We have already identified the critical equipment which is in extremely bad shape and should be replaced with immediate effect. Orders for the equipment should be placed by early next month," the official said.

More Stories on : Trade & Labour Unions | Tyres

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page