Meeting to resolve Dunlop deadlock fail

26 Nov 2008

Efforts for resumption of production in the Sahaganj unit of Dunlop received a set back on Tuesday as a planned tripartite meeting failed to make any headway. The Dunlop Sahaganj unit is considered the mother unit.
 
Normal operations at the unit were thrown into turmoil last week with company chairman asking the workers to stay at home on subsistence wages of Rs2,000 a month. The unit employs 1,179 workers.

State labour minister Mrinal Banerjee had met trade union leaders from the factory who had apprised him of the situation. He said the workers are pressing for tripartite talks involving the state government.

Earlier this week, on Monday, Dunlop chairman Pawan Ruia had met officials in the chief minister's secretariat and the finance department, besides Bannerjee. The discussions related to the issue of sales tax incentives that Dunlop is seeking from the state government. Ruia is also seeking a Rs100 crore loan from the state's nodal industry promotion agency.

In the meeting, Ruia apprised Bannerjee that the measure at the Sahagunj unit was only temporary, forced by shortage of capital funds from banks.

According to a senior official, the government is reluctant to enter into talks as the Industrial Disputes Act does not allow for its participation in an agreement containing certain terms Dunlop is seeking to include. The state government is seeking suitable modifications to be a party to the agreement, but Dunlop management was not prepared to make concessions.