March 6, 2009

Dunlop To Recommence Work At Sahagunj Plant On Mar. 6

KOLKATA: Dunlop India on Tuesday said it would withdraw suspension of work at its Sahagunj facility and the plant would commence operation on March 6, reports media.The company declared suspension of work on November 30, 2008, after trade unions rejected the company's proposal for a temporary wage cut and suspension of production to tide over working capital crisis. The company had also approached the West Bengal Government for working capital refinance and a set of fiscal concessions. The company said in a statement that a few bankers have now agreed to meet the working capital requirement for running the plant. Besides, the State Government also said it would it would consider relief and incentives sought by the company.

The company is yet to reach a consensus with the labor unions on pending issues and reopening of the facility and it hopes to sort out all pending issues with the unions after the commencement of repairing and refurbishing of the plant, the release said.The company had initially asked 229 workers (out of a total of around 1,200) of maintenance and engineering division to report to duty. The rest of the workers will be inducted in different departments in a phased manner, once the plant is ready for production.

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