Financial Daily from THE HINDU group of publications
Tuesday, Dec 06, 2005
Financial Daily from THE HINDU group of publications Tuesday, Dec 06, 2005 |
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Corporate
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Mergers & Acquisitions To visit Ambattur factory this week Our Bureau
Chennai , Dec. 5 THE Ruias, who have acquired Dunlop India Ltd, are likely to visit the Dunlop factory at Ambattur (in Chennai) here this week to assess the situation there and hold a preliminary discussion with workers, sources from the Dunlop Factory Employees Union (DFEU) said. Mr A. Krishnaswamy, President, DFEU, pointed that while the workers are for the reopening of the factory, issues regarding their dues need to be settled. The earlier management owed each worker about Rs 1.25 lakh as wages. There are over 1,300 workers on the rolls against 2,100 in 1998 when the factory was closed. The numbers have come down due to retirement and death. In the current calendar year alone, over 135 have retired or have died and the company owes them the gratuity and provident fund, he said. Dunlop India Ltd under the earlier management also owed Rs 1.80 crore as dues to the workers' cooperative society and Rs 15 lakh under a relief fund created for workers. These were deducted from the workers' wages, he said. Though the workers had signed two agreements on wage settlement in 2002 and in 2004, both have lapsed as the period of agreement had ended, he said. The new management will have to settle these issues as part of the re-opening of the factory at Ambattur, said Mr Krishnaswamy. Following the announcement of the acquisition of Dunlop India Ltd by Mr P.K. Ruia, the DFEU, which had welcomed the acquisition, has been expressing hope that the financial issues would be settled and the factory would be restarted. The announcement that the Ambattur unit is likely to be started earlier had also given them hope, the workers said.
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