Tyre manufacturer Dunlop India Ltd said Tuesday it had suspended the operations of the its factory at Ambattur, Chennai, with immediate effect, due to labor unrest.
The suspension on Tuesday followed more than 10 days of what the company said was “coercion, threat, intimidation” by workers over a compensation issue pending since 2009.
Dunlop India’s management say that despite a 2009 agreement with the Dunlop Factory Employees’ Union to bring down production cost to the minimum level at the plant, the union had manipulated attendance and payroll, causing the plant to incur heavy losses.
However, the workers’ unions, Dunlop Factory Employees Union and the Dunlop Anna Thozhir Sangam, have described the move as unjustified and blamed the management for delay in paying the wages and not managing production.
The company said during the period of suspension of work, the “principle of no work no pay shall be followed“.
As of now, 497 workers were employed in the factory, which produces rubber compound mix on job work basis for Falcon Tyres of Mysore.
Last update: Thursday – Feb 23 10.03 GMT