The Hindu Business Line : MRF lifts lockout at Chennai plant

According to information provided by the company to the stock exchange, the company which had suspended production at the Tiruvottriyur facility in North Chennai since December 3, 2007, was lifting the lock out following an assurance from the Chief Minister, Mr M. Karunanidhi, on support for the resolution of issues with the workers that had led to the lock out.

According to the company spokesperson, production at the facility is expected to restart in about a week’s time as the facility has been under lock out for over two months.

Reinstatement of workers

The management would start discussions with the workers’ union on the workers meeting the productivity norms. The reinstatement of workers suspended prior to the lock out would also depend on production norms being achieved.

According to MRF’s union representatives, the decision by the management to restart is welcome, but relations would be normal only when the 28 workers who had been suspended in November 2007 are reinstated.

Bonus dispute

At the time the lock out was declared, the union had said that workers had cut back on production after the company declined to give the annual award of Rs 2,500 a worker along with the bonus.

This had subsequently led to the lock out.

MRF employs over 800 permanent workers and 400 trainees at the Tiruvottriyur factory. It makes tyres for trucks, light trucks, tractors and OTRs.

This factory contributes about Rs 40-50 crore a month, about 10 per cent of MRF’s turnover. The company has factories in Puducherry, Kerala, Andhra Pradesh and Goa.

On the exchange today, the company’s shares opened at Rs 5,000 a share of Rs 10 and closed at Rs 4,985.15 against the previous close of Rs 4,995.

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