No future under Apollo – Cooper Chengshan union leader
The strike at the Cooper Chengshan plant in China’s Shandong Province has now been underway for more than two weeks, and although Cooper Tire and Apollo Tyres state this industrial action will have no effect on the planned takeover, union officials at the plant are equally adamant it shouldn’t take place.
An insight into the grievances allegedly held by Cooper Chengshan workers was given by China’s Global Times, which spoke to Liang Yitang, head of the plant’s labour union. Liang told the publication that Cooper’s acquisition itself isn’t so much the issue – rather, it is the prospect of having Apollo as the company’s new master. “If the buyer is not Apollo but other companies such as French tyre manufacturer Michelin, they (the Cooper Chenshang workers) may agree to it,” said Liang.
So what objections do employees at this joint venture facility have to being an Apollo-owned company? Liang says it’s a lack of confidence in the Indian tyre maker’s management. He told the Global Times that the workers will continue their strike action as “they could not see any future under the leadership of Apollo,” adding that the workforce believes Apollo’s leadership “lacks capability and is full of liabilities.”
Admittedly, Liang seems a hard man to please. In the same Global Times article reports the plant union leader describes Cooper Chengshan’s first years of operation as less than satisfactory due to frequent changes in “foreign” leadership, different management concepts and language barriers. “Now, we are the biggest and best plant among Cooper’s eight plants around the world,” stated Liang. “We do not want to risk our profits again in a mixture of three countries’ cultures.”
Armed with such strong opinions and concerns about Apollo’s high debt ratio, the striking workers may pose real difficulties for Apollo and Cooper. Indeed, the Chengshan Group, which holds a 35 per cent stake in Cooper Chengshan, has even suggested buying out Cooper Tire’s share in the plant. It engaged in talks with Cooper management on 26 June and 10 July but reported making no real progress during these meetings. Planned three-party talks to be held in Beijing fell through due to Apollo’s non-attendance.
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