December 1, 2008

Dunlop declares suspension of work at Sahaganj unit

Kolkata, 29 November, 2008: Tyre maker Dunlop India Ltd on Sunday declared suspension of work at its Sahaganj unit in the Hooghly district, affecting the fate of over 1,100 workers.

"After failure of rounds of prolonged discussions with the labour unions of Dunlop India Ltd, the management of the company is constrained to declare suspension of work at its Sahaganj plant with effect from November 30, 2008," a Dunlop statement said here. Just two years after it was revived, Dunlop decided a temporary suspension of work at the unit on November 17, citing lack of working capital.

During the suspension of production period during which workers were not required to report for duty, the management had proposed to pay each worker a solarium of Rs 2,000 per month. An agreement on this issue between the management and trade unions was supposed to be signed on November 20 but it did not materialise.

On November 24, Dunlop Chairman Pawan Ruia said that the company had approached the West Bengal Industrial Development Corporation for a loan of Rs 100 crore. Ruia had taken over Dunlop in 2005 and Sahaganj factory opened in October 2006. The company's Ambattur factory in south India is already closed for long.

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