Chennai-based tyre manufacturer MRF has declared a lock out at its Arakkonam factory near Chennai. The company’s decision comes after cross sections of workers at the factory are continuing their sit-in strike for the ninth day.
The production has come to half after cross section of workers of MRF in Arakkonam declared sit-in-strike on May 9, 2009 since their demand including reinstatement of around 250 workers, most of whom have been dismissed following unionisation, recognising the union and company should come forward to discuss about the wage revision with the union.
The company responded to this by declaring a lockout. In a notice, which was pasted at MRF factory at Arakkonam, the company had said “we have been concluding long-term settlement only with the trade union (The MRF Arakkonam Workers’ Welfare Union (AWWU)) recgonised by us ever since the workmen formed a trade union to represent them. It was in pursuit of such tradition we have made a settlement with the recognised union in the year 2004”.
The company had signed an agreement with AWWU, which was commanding a large majority, on May 9, 2009, the notice said.
Meanwhile the other union, MRF United Workers Union (MUWU), affiliated with United Labour Federation (ULF), had also claimed majority of the workers are with MUWU.
T V Paramasivam, president, MUWU has called for election to prove the majority for which the management has not come forward. The union had moved to the Madras High Court and Labour Commission to advice the company to conduct an election and waiting for their response Paramasivam told Business Standard.
Calling the strike as illegal, in the notice, MRF said that the lockout will come into effect from May 17, 2009 on no-work-no pay basis.
The Arakkonam unit produces motor tyres and tubes and radial tyre for MRF. According to Paramasivam Arakonam facility produce 26,000 tyres and 42,000 tubes a day.
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