Dunlop retracts on lay-off at Sahagunj

In a volte-face, Dunlop management today announced withdrawal of the lay-off notice issued on April 2 at its Sahagunj facility in West Bengal with immediate effect. The lay-off notice was effective from April 4.

State Government sources described the notice as “arbitrary and unacceptable”, as it was allegedly issued without taking the Government into confidence. No notice was available in the stock market either. According to a release issued by the Ruia group Corporate Communications Department today, the lay-off notice was issued at a time when the group “top- and mid-management” was discussing the need for a new business plan including fresh fund infusion for Sahagunj facility; during the four-day annual business convention in Thailand beginning March 31. The Dunlop management was also present at this meeting.

“The recent hikes in raw material prices and related issues were discussed there (at the Thailand convention) and it was decided that a revised business plan with fresh infusion of funds would be prepared for the Sahaganj unit. At this point of the meeting (in Thailand) the Dunlop management announced the news of the lay-off at Sahaganj. It was decided that the course of action on this would be determined immediately on reaching Kolkata,” the release said, adding that having returned (to Kolkata) this morning, the Group Chairman, Mr P.K. Ruia, evaluated the situation and ordered: “The lay-off notice issued by Dunlop India be withdrawn immediately.”

“Dunlop India has also been directed to prepare details of the revised business plan and implement it in the next 4 months. The quantum of the fund required and the revised product mix will be known as soon as the plans are crystallised and will be communicated accordingly,” the release adds.

Trade union sources told Business Line that they have heard about the steps taken by the Ruia group top management. “However, we are not yet aware of the fresh notice withdrawing the lay-off. It was illegal and contested. Hopefully, it will be withdrawn,” Mr Ranjit Niyogi President of the INTUC-affiliated union at Sahagunj, told Business Line .

Meanwhile, sources suggest that the issue had stirred up the Dunlop management. While company officials are tight-lipped, sources said, in a fast move the Dunlop has appointed a new Head for human resources on Tuesday. As the evaluation on the whole situation is still on, chances of some heads rolling are not ruled out.

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