As workers and management reach an agreement, the 19-day strike at Apollo Tyres' Waghodia plant ends. Work is expected to resume from the third shift tonight.
Workers and the company officials signed a memorandum of understanding on Friday in the presence of district labour department officials.
K O Shah, deputy labour commissioner, labour department, government of Gujarat informed that "Both parties signed an MoU today, thereby ending the strike. Workers will report back to work from the third shift starting at 10:30 PM tonight."
The newly formed labour union has not been granted recognition by the company, it would take up the issue after three months, he added.
"Production had been disrupted after an agitation by a section of workers demanding the formation and recognition of a new union affiliated to the Bhartiya Mazdoor Sangh (BMS). The Gujarat government had declared the strike illegal yesterday. At a meeting post this, the workers agreed to resume normal production while discussions with management would continue. An agreement to this effect was signed in the presence of the State Labour Commissioner today, by representatives of the management and the agitating workers.", Apollo Tyres said in a statement.
It also said that the company would also like to clarify that throughout the agitation, production did continue at the plant, albeit at reduced levels.
"While the daily production was short by about Rs 5 crores, this has had minimal impact on the sales of the company as tyres were available from existing inventories, and some specific sizes were also compensated by additional production in other plants in the country", the statement added.
Shah further informed that, "Workers had demanded wages be given for the period of the strike. The company, however, has agreed to pay 50% salary advance for the 19-day period, and all workers suspended during the agitation would be taken back barring five workers."
Workers at the plant had gone on strike from October 23, demanding recognition to a newly formed labour union at the plant called the Bhartiya Majdoor Sangh (BMS). They also demanded re-instatement of suspended workers at the plant.
An MoU was signed between the company and the striking workers on November 3 according to which they were supposed to report back to work from second shift of operations on Sunday, November 4.
However, the workers violated the MoU and stayed away from work, saying that their demands be met first.
Around 700 workers were on strike at the nylon tyres plant at Apollo Waghodia unit, while around 500 workers were working at the nylon tyres plant. The radial tyres unit within the same premises was functioning normally.
