The Hindu Business Line : Talks to end deadlock at Apollo Tyres unit fail again

Kochi, Jan. 9 The lockout that was declared on December 6 at PTL Enterprises of Apollo Tyres Ltd (ATL) in Kalamassery near here has entered the second month as conciliation meetings have failed.

The latest meeting between the management and workers was convened by the State Labour Minister on January 7.

According to the management, out of the 12 items proposed by it in the meeting on Wednesday, the unions were prepared to consider only three.

“They wanted the lockout to be lifted and discuss the balance items. As the tendency of the unions at Kalamassery plant is to drag discussions unnecessarily and delay proceedings, the management suggested that as all these items are the basic requirements for the survival of the plant, these items can be discussed and settled within 10 to 15 days and then the lockout can be lifted. The unions were not agreeing to this and hence no settlement could be reached,” a management source said.

Union tactics

This unit, formerly Premier Tyres Ltd, is under lease to the ATL. “In spite of repeated requests to the unions the violent and illegal acts and obstruction and intimidating tactics are being continued by the workers.” And hence, the management was “left with no alternative but to declare a lockout,” company sources said.

As the unit is producing only 90 tonnes of tyres a day – which is not sufficient for healthy survival of the unit – and as it is not possible to expand at Kalamassery, the management has been suggesting relocating the plant to Irapuram Rubber Park with an expanded capacity of 200 tonnes a day.

The workers were offered free transport service with no loss of job earnings. The move would have created more jobs.

Plans for land

In the Kalamassery land, if the Government permits, the management was planning to set up a super-speciality hospital, a five-star hotel and an IT complex with an investment of about Rs 1,000 crore. This would have created 5,000 jobs. But the unions and workers were not co-operating, said company sources.

Meanwhile, a senior ATL management source told Business Line that consequent to the economic slump, the demand for tyres has fallen by over 40 per cent from September last following drop in production of automobiles. The Rs 12,000-crore tyre market in the country has been squeezed now to below Rs 8,000 crore. Therefore, the management has been compelled to do some adjustments to reduce production cost.

Cost Cuts

All the tyre manufacturing units in the country, including the mother plant of ATL at Perambra in Kerala’s Thrissur district, have resorted to such measures, he said.

Trade unions, however, alleged that the management has not been co-operative and has violated the provisions of the agreement reached at the time of taking over of the company, under a revival package accepted by the BIFR.