Dunlop shuts unit, to give staff allowance | business | Hindustan Times
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Dunlop shuts unit, to give staff allowance

business Updated: Nov 30, 2008 20:47 IST
Dunlop India Ltd

Tyre-maker Dunlop India Ltd on Sunday declared suspension of work at its Sahaganj plant in the Hooghly district, leaving the future of over 1,200 workers in uncertainty.

The ailing company’s latest decision comes 13 days after it temporarily suspended production at the unit citing lack of demand due to the global economic downturn, and asked workers to accept a monthly subsistence allowance of Rs 2,000 till resumption of operations.

However, the management and the trade unions failed to reach an agreement on the subsistence allowance and other pending issues even after several rounds of talks.

Dunlop Chairman Pawan K Ruia said on November 23 that production would restart any time between 15 days and three months after the company got some relief from the West Bengal government and a working capital loan from banks.

However, after declaring the suspension of operations on Sunday, the company said: “The management would like to reiterate here that it remains committed to resuming production at the plant at the earliest once the unions and the management arrive at a consensus on the pending issues.”