Our Bureau

Chennai, March 27

The Dunlop India Ltd will commence production at its factory in Ambattur here on or before August 31, according to a formal agreement signed between the Dunlop Factory Employees Union and the management representatives, according to the Union's President, Mr A. Krishnaswamy.

It may be recalled that they had entered into an agreement 10 days ago that provided for taking up maintenance work from April 10 with production to begin four months later. The three-year agreement provides for a wage cut of 20 per cent, a retirement scheme for 300 workers to reduce the workforce to about 800, an incentive scheme and lay off compensation.

The agreement was finalised today in the presence of the Tamil Nadu Government's Labour Department officials with a specific date agreed upon for starting production.

The details of production and productivity will be finalised after the factory commences operation and runs for a few months. That would help to come to a better understanding of the capabilities at the facility, which has been out of operation for several years, he said. According to management representatives they are targeting an output of about 130-140 tonnes a day.

The production is expected to stabilise by November. The details of the product mix are being finalised, they said.

(This article was published in the Business Line print edition dated March 28, 2006)
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