Lockout Negotiations Result in 200 More Workers for Apollo’s Perambra Plant

Apollo Tyres reports the successful conclusion of negotiations with union representatives over the lockout at its Perambra factory in India’s Kerala state. After reaching an agreement with two of the three unions representing employees at the company’s so-called “mother” plant, Apollo has announced the end of the lockout which began on June 11.

A number of “positive steps” have come out of the negotiations between the unions and company management, Apollo states. The Indian tyre maker outlines these steps as follows: capacity at the Perambra plant will be increased from 308 to 340 tonnes per day in accordance with agreed upon productivity measures. To enable this expansion in capacity, an additional 200 workers will be employed. Furthermore, during night shifts, weekends, holidays and periods of high absenteeism, Apollo will utilise “secondary man power.” This measure is, the company notes, essential, as the Perambra plants has one of the highest absentee rates in the country.

“I am glad that employees will be able to share the news of the lockout resolution with their families during the festive occasion of Onam,” said Satish Sharma, Apollo Tyres’ chief of India Operations. “The increase in capacity, manpower and the use of secondary labour are all progressive steps take by the unions. These will have multiple benefits; beginning from securing the future of the plant to providing employment to a larger number of people and allowing workers to earn greater incentives. We continue to remain hopeful that the third union also will accept the conditions in the new long term settlement, considering the welfare of all employees.”
 
The Perambra plant produces crossply truck, bus, light truck and farm tyres. Apollo states the lockout has affected its volumes in the past quarter and efforts are on to enable a quick turnaround. The success of the recent negotiations was, the company acknowledges, to a large extent aided by Kerala’s Labour Minister and Labour Commissioner.