Birla Tyre workers give ultimatum on wage hike

Even as the Balasore unit of Birla Tyre has resumed operation after a day long strike last week, the threat of another disruption in the operation of the plant looms large as worker unions have given an ultimatum to the company management over the fulfillment of their demands.

About seven unions are active in the plant and all of them are united in their demand for raising the daily wage of temporary workers from Rs 92 per day to Rs 150 per day, among other things.

These unions have handed over a seven-point charter of demand to the company officials after returning to work after a day’s strike on June 10 with a seven-day ultimatum, warning to halt production again if their demands are not met.

Meanwhile, a senior official of the company said, “The plant is running smoothly now, there is no problem”. The personnel manager of the Balasore unit of Birla Tyre, Dillip Gharpade, however, did not elaborate on the ultimatum given by the unions. “I cannot talk about labour strike problems at the moment,” he said.

Labour strike issues and production halt is not new to Birla Tyre. After a two-year long continuous friction between the labour unions and company management, the plant was shut down for more than two months earlier this year and had reopened in May following the intervention of the Balasore district collector.

Birla Tyre produces about 1.5 million tyres per annum in its Balasore unit for passenger cars, commercial vehicles including buses and trucks and farm vehicles. The company also exports the tyres to 50 countries from this unit, where more than 3,000 workers are engaged.

It is part of the Bombay Stock Exchange (BSE) listed Kesoram Industries, a B K Birla group company. Kesoram Industries is a highly diversified company, with business interest in cement, rayon yarn, refractories, textiles, tyres pipes etc. However, cement is the largest contributor to the turnover of the company with over 55 per cent share. On Thursday, Kesoram shares on the BSE gained 0.37 per cent to end at Rs 122 for one share.