Apollo resolves Perambra dispute

ERJ staff report (DS)

Kerala, India -- Two of the three Unions at Apollo Tyres' oldest tyre manufacturing unit in Perambra, in the southern state of Kerala, have agreed to conclude long term settlement negotiations following a bitter labour dispute. The result is that the plant bacame operational from Saturday, August 21. This brings to an end the lockout which had been imposed on June 11, following a long period of illegal 'go slows'.

As a result of negotiations, the unions and management agreed the following:

• plant capacity will increase from 308 to 340 tonnes per day, in accordance with agreed upon productivity measures
• an additional 200 people will be employed to enable capacity expansion
• Use of secondary man power during night shifts, weekends, holidays and periods of high absenteeism.

Speaking on the resolution Satish Sharma, Chief, India Operations, Apollo Tyres Ltd, said, “I am glad that employees will be able to share the news of the lockout resolution with their families during the festive occasion of Onam. The increase in capacity, manpower and the use of secondary labour are all progressive steps take by the Unions. These will have multiple benefits; beginning from securing the future of the plant to providing employment to a larger number of people and allowing workers to earn greater incentives. We continue to remain hopeful that the 3rd Union also will accept the conditions in the new long term settlement, considering the welfare of all employees.”

The Perambra plant produces cross ply truck, bus, light truck and farm tyres. The lockout has affected Apollo's volumes in the past quarter and efforts are on to enable a quick turnaround. The successful negotiations have been aided in a large measure by the State Labour Minister and the Labour Commissioner. The Plant in Perambra, Kerala, is Apollo's first greenfield unit and often referred to as the Mother Plant; while the company is among the largest private sector employers in the state of Kerala.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Apollo Tyres Home page