The Hindu Business Line : Apollo stops production at Premier Tyres unit

The Apollo Tyres Ltd (ATL) management has stopped production of truck tyres at its second unit, Premier Tyres at nearby Kalamassery, following stoppage of despatch by workers who had gone on a strike from December 22 demanding hike in wages.

Strike

The workers have gone on strike on the directions of the trade unions at a time when the negotiations were going on for reaching a long term settlement, senior management sources said. The State Labour Minister has called a meeting of the management and trade union leaders on Thursday in Thiruvananthapuram to sort out the issues, they told Business Line on Wednesday.

Ayurveda resort

According to the sources, the company has decided to set up an Ayurveda hospital and resort on its six acres of land in the area, which was bought by the earlier management for construction of staff quarters.

The trade unions are blocking it to use it as a `trump card' to demand higher wages at the discussions for the long-term wage settlement.

They said that the production cost at the Premier Tyres was higher than that of it in its main plant at Perambra near Thrissur. "When 2,500 workers were producing 270 tonnes of tyre at Perambra, the production by 1,500 workers at Kalamassery was just 85 tonnes per day raising the cost of production per one truck tyre by Rs 350 excluding the raw material cost".

The company is planning to invest Rs 20 crore in the ayurveda hospital and resort project.

Meanwhile, the trade unions alleged that the company management had adopted a strategy to utilise the land for other purposes aimed at making more profits.

Even the plans to shift the tyre factory to Irapuram near Perumbavoor are part of it.

The previous long-term wage settlement expired one year ago and yet the management had not come forward to renew it so far.

The management is demanding now the trade unions' consent for utilising the six acres of land for setting up the ayurveda hospital and resort, which has no relation with the long-term wage settlement, they alleged.

However, the company management claimed that setting up of the hospital and resort would create more employment opportunities. Shifting of the unit to Perumbavoor would lead to the overall improvement of the unit and its workers, they said.

More Stories on : Trade & Labour Unions | Tyres | Kerala

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