Month-Long Tyre Workers’ Strike Ends

The strike that had frozen production at Pakistan’s General Tyre and Rubber Company (Gentipak) for a month has come to an end. The industrial dispute at the country’s largest tyre manufacturer, of which Continental is a minority shareholder, began on March 16 after management refused to a accept charter of demands put forward by the workers’ labour union. These demands included wage increases and the appointment of workers to permanent positions.

According to a company press release, additional effort will now be made to regain consumer confidence and get back on track following incurring sizeable losses during the four weeks –  according to December 2009 figures, current Gentipak production should average around 128,500 tyres per month. The press release also stated that the Gentipak has confidence in its workers and can meet the tightest deadlines and growing market demands.

Company net sales had increased 32 per cent in the six months to December 31, 2009, to Rs 3.0 billion (£23.1 million), with a net profit of Rs 201 million recorded (£1.5 million). The company, which produces passenger car and light truck radials plus truck and agricultural crossply tyres under the General and Euro brand names, has operated a royalty technical agreement with CTA. This agreement, which officially expired on August 31, 2009, was extended, and the company is said to be in the process of discussing the content of a new draft agreement.