Dunlop suspends Ambattur operations

A beleaguered Dunlop India on Tuesday morning informed its workers at the Ambattur factory about indefinite suspension of operations. This comes in the wake of Dunlop's week-long standoff with the Chennai-based residential property developer, VGN Enterprises, over the ownership of 8 acres adjoining the factory premises, to which both the parties have laid a claim.

The management was suspending operations at the Ambattur factory for "trade reasons" from August 7, the company said in a statement. All employees had been exempted from reporting for work from Tuesday and would not be entitled to wages. The suspension of operations would be reviewed in due course, the company said.

Dunlop had alleged that its employees were acting against the company's interest after receiving a payment of Rs 15,000 each from VGN Enterprises, which claimed to have bought the land through a due process of law.

In an interview with Business Standard last week, Dunlop officials had alleged that the funds were deposited by way of cheques in the workers' bank accounts.

The company said it was gearing up to start regular production from early August, which now became difficult in the light of its employees "joining hands" with VGN against the Dunlop management.

However, the Dunlop Factory Employees' Union accused the company management of displaying a lackadaisical attitude on the land issue. While VGN was willing to swap the 8 acres of disputed land for an equivalent area, the Dunlop management was not keen on resolving the issue.

The employees' union also noted that the Dunlop plant had seen no production in the past four months and the management was not prompt in paying workers their dues. Retired employees had not been given their settlement and provident fund dues, the union alleged.