Apollo Tyres Commences Lockout at Perambra Factory

In June 11 filing to the Bombay Stock Exchange, Apollo Tyres has reported the initiation of a lockout at its Perambra factory in Kerala. “With reference to the earlier announcement dated April 29, 2010, Apollo Tyres Ltd has now informed BSE that the management has declared Lock-out at company's manufacturing facility at Perambra,” stated the filing, quoting “labour unrest relating to long term settlement negotiations” as the reason for its action.

According to India’s Business Standard, the lockout at this facility, which produces a quarter of the tyre maker’s daily output, will cost Apollo an estimated Rs 30 million (₤435,000) per day. Some 100,000 cross-ply truck and bus tyres are produced at Perambra each month.

In April the tyre maker informed the BSE that “workers at company’s Manufacturing Plant at Perambra (Kerala) have resorted to go slow resulting in considerable drop in the production. The workers have resorted to go slow as a pressure tactics for bargaining long term settlement.” At the time, however, Apollo said it was “confident of resolving this matter amicably within a reasonable time.”