Financial Daily from THE HINDU group of publications
Friday, Mar 17, 2006


Group Sites

Corporate - Sick Units

Dunlop to reopen unit at Ambattur on April 10

Our Bureau

Chennai , March 16

Dunlop India's factory at Chennai will reopen on April 10 following an agreement between the management and the Dunlop Factory Employees Union (DFEU) here on Thursday, according to Mr A. Krishnaswamy, President, DFEU.

Under the agreement, maintenance work is to commence on that day and production four months later.

Except for a short stint in 2001 the factory has been out of production since 1998 following a fund crunch. Management representatives of the Kolkata-based Ruia group, which acquired Dunlop in December 2005 from the M.R. Chhabria Group, and the DFEU, have been discussing means to restart operations over the last three months.

The agreement between the management and union will be formalised in the presence of the Tamil Nadu Labour Department officials within the next one week, sources said.

Mr Krishnaswamy said that the factory at Ambattur, the industrial belt on the western outskirts of Chennai, has a workforce of about 1,100, which will be reduced to about 800 in about 2-3 months through a voluntary retirement scheme. They will also take a 20 per cent pay cut. Over 100 workers will start with the maintenance work, he said.

Under the agreement, as a part of recommencement of operations, the management will pay the workers Rs 2,500 on April 10 and an additional Rs 2,500 in May. Six months after production starts the workers will be paid an additional Rs 5,000, he said.

More Stories on : Sick Units | Tyres

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Viceroy Hotels clears equity, warrants issues

Siemens bags orders worth Rs 68 cr
Aurobindo drug gets US FDA nod
Certification for Hikal's drug
Avon allots shares to non-promoters
Jet Airways defers FCCB, GDR issues
Wockhardt gets nod to raise $800 m
Deutsche to invest $75 m in Sical
Fidelity hikes stake in Dr Reddy's
Rajesh Exports buys out OyzterBay chain
Writer Corpn eyeing global acquisition
Lifeline takes over Karur hospital
Coromandel to buy stake in FICOM
Archidply sets up unit in Uttaranchal
Recaero sets up Indian subsidiary in Bangalore
Suzlon Energy to invest $60 m in China
AP Paper Mills strike called off
`Gulf Oil entry into new areas to unlock shareholder value'
Tata Salt's gesture to poor kids
Essar group now into telecom infrastructure
Dunlop to reopen unit at Ambattur on April 10
Chevrolet Aveo range starts at Rs 5.55 lakh
SKF India to roll out new products from Pune unit
Govt questions Cairn's reserve claims
Taurus plans to make India Asia Pacific hub
Pasrija takes over as OIL CMD

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line