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13. March 2006

INDIA: Dunlop's Chennai unit to reopen in Apr

Source: Daily "The Hindu Business Line", New Delhi; 13 Mar 2006

Chennai , March 12
The Dunlop factory in Ambattur, the industrial suburb
to the west of Chennai, is expected to reopen in April
and commence production three months later, according
to sources in the know.

Mr A. Krishnaswamy, President, Dunlop Factory
Employees Union (DFEU) said that the discussions with
the management were coming to an end and an agreement
would be signed between the management and DFEU on
Thursday or Friday next week.

The three-year agreement envisages that the
maintenance work would start in April and the first
tyre would roll out in August-September.

The workforce would be brought down by about 300 and a
wage reduction of 20 per cent on an earlier agreement
finalised in September 2002.

However, an annual increment has been provided for the
three-year period to partially offset this loss in
wage, he said.

It may be recalled that the Kolkata-based Ruia group
acquired Dunlop in December 2005 from the M.R.Chhabria

The DFEU and the new management then initiated
discussions on reopening Dunlop's facilities in
Ambattur and in Sahagunj, Kolkata.

But the discussions have stalled at Sahagunj and there
had been optimism on reopening the facility in
Ambattur. Management representatives expressed
optimism on reaching an agreement with the union fast.

The agreement was being finalised with the DFEU.
A detailed work plan is also in the pipeline.

(Syed Rashid Ali, Karachi, Pakistan)

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