By IANS
Chennai : Leading tyre maker MRF Ltd Tuesday reopened its manufacturing facility on the outskirts of Chennai after a 60-day lockout.
The Tamil Nadu government had last week threatened to take over MRF’s Thiruvottiyur manufacturing facility if the authorities failed to resolve the industrial dispute and reopened the unit. It had given a week’s time to the company.
The management had accused the workers of “not meeting productivity norms, and indiscipline”, shut the factory early December 2007 and taken the dispute with workers to court.
After a dialogue with a government mediator and the workers’ union Monday and a meeting between MRF Chairman M. Mammen and Chief Minister M. Karunanidhi, MRF management told the Madras High Court that all issues would be negotiated.
Nearly 600 workers began working at the plant Tuesday morning. The union will meet Wednesday to discuss the reinstatement of 28 workers MRF had suspended last year.
Communist Party of India (CPI) State Secretary D. Pandian, who is also president of MRF Employees Union, told the media here: “We would like to resolve the dispute by negotiations.”
Production at MRF’s plant was affected following a standoff between the management and the workers’ unions over wages and other issues.
The Tiruvottriyur plant, the largest among the MRF’s six manufacturing facilities, has the capacity to produce about 2,600 tyres a day, including 1,000 truck tyres.
MRF has said it plans to spend Rs.6 billion ($150 million) over the next two years to expand capacities at three of its factories.