Despite four rounds of talks between the Kerala labour minister, management and trade unions, the lockout at the Kalamassery unit of Apollo Tyres completed five weeks on Tuesday.
The company had declared a lockout at its unit on December 6 when lightening strike in some sections of the unit, obstruction to the despatch of finished products and blocking and threatening of management staff were allegedly undertaken by a section of the workers.
On January 7, a meeting was convened by labour minister PK Gurudasan where the management put forward 12 proposals for the survival of the plant. But, the unions agreed to consider only three and said the remaining proposals would be discussed only after the lockout was lifted.
Apollo Tyres’ chief of India operations Satish Sharma said all the 12 proposals pertained to better manufacturing practices and the need to expand and modernise for higher efficiencies. It is impossible to run such a unit with high operation costs and low returns, he said in a statement.
The unit employs over 1,100 workers. It produces 90 tonne of tyre per day while this is 150 in the Perambra unit and 200 in the Baroda unit.
The Kalamassery unit produces cross-ply light truck and farm tyres primarily for the export market. However, production of radial tyres, higher productivity, expansion and change in technology are essential to ensure the survival of the unit, he added.
The company also proposes to relocate the plant to the Irapuram Rubber Park, near Perumbavoor, in order to expand and modernise.
The 80 acres land at the Kalamassery unit would be utilised for developing a super specialty hospital complex, IT campus, convention centre and star hotel. Though the management has assured free transportation for all workers to the proposed location, trade unions oppose this alleging there would be retrenchment of employees.
