The Hindu Business Line : MRF declares indefinite lockout at Chennai unit

According to information provided by the company to the stock exchange, this follows the one-day token lock out declared on November 30. There has been no change in the situation and the company has declared a lock out starting with the first shift today.

The company’s official spokesperson said that the workers were not meeting productivity norms. Efficiency and viability of the plant had been affected. The Tiruvottriyur factory, which is MRF’s oldest production facility, accounts for about 10 per cent of its turnover of about Rs 5,000 crore. If the production norms had been met, the factory “could have done much better,” the officials said.

Unless the workers change their mind the management would have no option but to continue the lock out, he said.

Cash award issue

According to MRF’s union leaders, the problem relates to a cash award of Rs 2,500 to each worker, which is usually paid along with the annual bonus. The management has refused to pay the award this year. In retaliation the workers had decided not to work overtime. This had affected production during the third shift. Since October 31, the management has suspended over 20 workers and dismissed two employees over this issue.

Union representatives say that over 200 workers who had reported for duty yesterday have decided to stay inside the factory until the issue is resolved. They have been inside the factory since Sunday night.

According to the official, the award is paid only when the productivity norms are met and when that is affected the workers cannot claim it as a matter of right.

The company has informed the stock exchange that production is going on according to schedule at its other facilities. MRF has one more unit in Tamil Nadu, and in Puducherry, Kerala, Andhra Pradesh and Goa.

During the third quarter ended June 2007, it reported a net profit of Rs 42.50 crore on net sales of Rs 1,133.43 crore.

On the NSE, its shares of a face value of Rs 10 opened at Rs 7,249.95 closed at Rs 7,258.

More Stories on : Trade & Labour Unions | Tyres

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