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17. March 2006

INDIA: Dunlop to reopen unit at Ambattur on April 10

Source: Daily "The Hindu Business Line", New Delhi; 17 Mar 2006

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,

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

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.

(Syed Rashid Ali, Karachi, Pakistan)

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