DUNLOP TALKS INCONCLUSIVE, SAYS WORKERS UNION

 The discussions between the management and the workers union of Dunlop India Ltd for a final settlement to terminate the services of the workers at Ambattur ended on a positive note, according to Mr P.K. Ruia, Chairman, Dunlop India Ltd. However, union sources have described the talks as inconclusive.

At a meeting Mr Ruia and Mr Damodar Dani, Executive Director and CEO, Dunlop, discussed with Mr A. Krishnaswamy, President, Dunlop Factory Employees Union (DFEU), and other office-bearers, issues relating to the non-payment of interim wages since December 2008 and a final settlement of about Rs 5 lakh each for the 734 workers on the companys rolls as of October 2008.

Mr Ruia said the management has agreed to pay the interim wage as soon as possible. On the final settlement, he said, the management has asked the workers to stick to a viable formula justifying the amount to be paid per worker. It cannot afford to pay a lump sum to the workers. The management was willing to wait for the union to decide on the issue. The discussions were a step forward in resolving the issues between them, he said. Dunlop India is examining various options including paying off the workers and restarting the factory with a new team at the existing location or new location, Mr Ruia said.

Iron scrap sale
According to sources in the know, the management had insisted that the workers allow them to sell the iron scrap within the factory premises to raise the funds to pay the interim wages of Rs 2,700 a worker but the union has not agreed to the proposal.

The management has also said that it would not be able to pay the final settlement demanded by the DFEU, which works out to a total of about Rs 38 crore. On the contrary, the management was in favour of a settlement along the lines of the early retirement scheme worked out for over 180 workers last year, which involved a payment of a maximum of Rs 1.30 lakh.

Last November, the DFEU and the management had signed an agreement setting a six-month deadline, which ends this month, to arrive at a final settlement. Under the agreement, the factory would not be in operation and workers will not have to report for duty but they would be paid an interim wage of Rs 2,700 a month. However, according to union sources, the management had paid the wages for only October and November.

Operational cost
Sources in the know said that in terms of operational cost, the company would find it ideal to restart operations now because raw material costs and fuel costs were less than half they were when Dunlop stopped production last year. Rubber cost was down to Rs 65 a kg, about half of its peak prices; furnace oil cost was Rs 10 a kg against Rs 34 previously. But plans to restart hinge on the company being able to sell a portion of the land the company owns about 90 acres. However, the slowdown in real estate has stymied its plans, the sources said.