Don’t miss the latest developments in business and finance.

MRF declares lockout at Tamil Nadu factory

Image
T E Narasimhan Chennai
Last Updated : Jan 20 2013 | 8:47 PM IST

Move comes after nine days of sit-in strike by rival union

Chennai-based tyre giant MRF has declared a lockout at its Arakkonam factory, 70 km from here. The company’s response came after workers continued their sit-in strike for the ninth day.

The strike has been called by a workers’ union which claims to have the majority’s support, while the company formally recognises an older union as the one with which it will do business.

The company notice said, “We have been concluding a long-term settlement only with the trade union (The MRF Arakkonam Workers’ Welfare Union, AWWU, recognised by us ever since the workmen formed a trade union to represent them. It was in pursuit of such a tradition that we made a settlement with the recognised union in the year 2004.”

The agreement on the current dispute with AWWU was on May 9, says the company. However, the other union, the MRF United Workers Union (MUWU), affiliated with the United Labour Federation (ULF), insists it has the majority. T V Paramasivam, president, MUWU, has called for an election to prove it and says the management is stalling. The union had petitioned the Madras High Court and the Labour Commissioner and is waiting for their response, said Paramasivam.

He added the workers will continue their strike and the union is discussing with legal experts to check the implications if they continue their sit-in strike. Since the management has locked the factory, it will be formally illegal if workers continue to stay inside the factory.

The company notice says the strike is illegal and the lockout will take effect from yesterday.

More From This Section

The sit-in strike began on May 9, with a demand for reinstatement of around 250 workers dismissed, allegedly for supporting the union and wanting wage revision talks.

According to Paramasivam, the Arakkonam facility produces 26,000 radial tyres and 42,000 tubes a day.

Also Read

First Published: May 19 2009 | 12:30 AM IST

Next Story