MRF opens Chennai tyre plant after 60-day lockout

ERJ staff report (DS)

Chennai, India -- On Tuesday, MRF Ltd reopened its manufacturing facility on the outskirts of Chennai after a 60-day lockout. The move came after the Tamil Nadu government threatened to take over MRF's Thiruvottiyur manufacturing facility if the authorities failed to resolve the industrial dispute.

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.

The Tiruvottriyur plant, the largest among the MRF's six manufacturing facilities, has the capacity to produce about 2600 tyres a day, including 1000 truck tyres. MRF has said it plans to spend Rs.6 billion (Euro 104 million) over the next two years to expand capacities at three of its factories.

The management shut the factory early December 2007 after accusing the workers of 'not meeting productivity norms, and indiscipline', and then took the dispute with workers to court.

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Press release from MRF