MRF lifts lockout at Kottayam plant

Tyre maker MRF has lifted the lockout at its Kottayam plant in Kerala with immediate effect. This follows a decision taken in a conciliatory meeting last night.

"...the lockout declared at the company's manufacturing plant situated at Kottayam in Kerala with effect from 5 am on June 22, 2011 on account of labour unrest in the factory has been lifted with effect from 7 am today," MRF said in a filing to the Bombay Stock Exchange (BSE) today.

Last night, the stalemate was resolved at a tripartite discussion between state labour department officials, the management and various unions' representatives.

According to sources, the three suspended INTUC workers would be allowed to work from tomorrow. They had been suspended following production blockage after the company brought in some changes in the working arrangements.
According to sources, proceedings would be held against them and if found guilty action would be taken.

According to union sources, the lockout at the plant was a fallout of a dispute between an employee and a supervisor over alleged unauthorised leave.

The plant  with a production capacity of 175 tonnes, and a workforce of around 1,350, manufactures tyres and tubes, and has not been in operation for the past four days.

MRF operates seven manufacturing facilities in South India and exports tyres and conveyor belts to over 65 nations, including the US, Europe, Middle East and Japan.