Financial Daily from THE HINDU group of publications
Tuesday, Jun 06, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jun 06, 2006 |
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Corporate
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Trade & Labour Unions Dunlop strikes pact with workers at Sahagunj unit Our Bureau
New agreement The company will pay Rs 5,000 flat per person. For those retired before November 1997, it will pay Rs 2,770 each. 1,179 employees will be retained; 1,415 will be offered early retirement.
Kolkata , June 5 The month long stalemate at the Dunlop Sahagunj facility in West Bengal is finally over. In a tripartite agreement today, the company management has agreed to pay an enhanced package for payment of first instalment towards past dues. The payments will be made beginning June 20. Unlike the past agreement where the payments were slated to be made on pro-rata basis, as per the new agreement, the company will pay Rs 5,000 flat per person except those retired before November 1997 as first instalment. The latter will be offered Rs 2,770 each. A total of 1,179 employees will be retained by the new management. The remaining 1,415 will be offered early retirement. Maintenance work will resume with immediate effect and production is expected to commence in September this year. It may be mentioned that the maintenance programme had suffered a delay as the unions declined to accept payments against past wages and dues on pro-rata basis as it had resulted into lesser pay per person than was expected. The dispute was referred to a tripartite meeting chaired by the State Labour Minister, Mr Mrinal Bannerjee. The trade unions had also urged its members not to join work for the scheduled maintenance programme till the dispute was settled. The Dunlop management is expecting the Ambattur facility to resume production in the first week of August, almost three weeks in advance. The company is also anticipating an escalation in investment for modernisation of the facility from the initially estimated Rs 40 crore to approximately Rs 60 crore. Company sources said that the maintenance-cum-modernisation programme at Ambattur is progressing ahead of schedule. "We are expecting the plant to come on stream latest by the first week of August," a Dunlop official added. The facility was reopened on April 10. The sources, however, added that the state of the plant and machinery was found in much inferior condition than expected. "For example, we had initially thought of requiring two new boilers. However, we have ended up ordering three," the official said, adding that the total investment towards plant and machinery may go up by 50 per cent to Rs 60 crore. "Since a much larger number of equipment are to be replaced any delay on the part of the supplier may cause a resulting delay in the production schedule," he said. The company is also exploring the possibilities of setting up an industrial products division in Ambattur.
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