MRF lifts lockout at Arakkonam factory

Chennai-based tyre manufacturer MRF Ltd has decided to lift the lockout with effect from Wedensday at its Arakkonam factory near Chennai. The lockout was was announced by the company on May 17 due to labour protest.

However the workers have said that they would not resume work and were planning to file a petition in the Supreme Court against the company's management.

Meanwhile some MRF workers were arrested in Chennai on wednesday for protesting in front of labour department in Chennai. Workers moved to Chennai from Arakkkonam after their talks with district administration had failed. According to union representatives the district administration had asked the workers union to resolve the matter through court.

The MRF United Workers Union (MUWU), which claims that majority of the workers are with it, called for a strike on May 9 and was demanding reinstatement of workers who were dismissed following unionisation. MUWU wants the company to discuss the wage revision with it, instead of the other union, MRF Arakkonam Worker Welfare Union (MAWWU), which it claims is pro-management.

Speaking to Business Standard, V Prakash, honorary president and senior advocate and counsel for MUWU said that the meeting called by the District Collector failed. “The Collector asked us to go back to Madras High Court to resolve, since the government is helpless on the issue, we don't have a choice but to file a petition in Supreme Court. The main plea would be to recognise the union,” said Prakash.

It may be recalled the Madras High Court on May 19 directed the two unions — MUWU and MAWWU — and the MRF management to maintain the status quo, subject to the management taking a decision on the wage settlement agreement of May 09, 2009.

The management representatives were not available for a comment when contacted.

The management had announced the lockout at Arakkonam factory with effect from May 17, 2009, which was lifted today, on no-work-no pay basis due to the labour issue. The company also said it would move the production to its Medak factory in Andhra Pradesh.

The Arakkonam unit produces 26,000 tyres and 42,000 tubes a day and supplies to various auto majors including Honda Motorcyle, Scooter India, Bajaj Auto and Maruti Suzuki to which MRF is an original equipment supplier.