Tyre manufacturer Dunlop India Limited has suspended operations at its factory in Ambattur here from February 21 citing labour unrest.

“In recent times an atmosphere of fear was prevailing at the plant because of the increasing frequency of agitations by workers. As a result, production has been badly affected at the plant and the material supply chain was disrupted, crippling the earning of the plant. The management of Dunlop India, therefore, had no option but to close operations,” a release from the company said.

The management is in discussion with the Tamil Nadu Government and unions to settle the issues with the workers. “The Dunlop management is hopeful of an early settlement of the issues.”

In a notice to the BSE, the company charged the Dunlop Factory Employees' Union with raising the demand of final settlement for all workmen. The Ambattur facility was reopened in the third week of October 2009 following a long-term settlement between the management and the union, which in 2008-09 was insisting on final settlement for all the workmen. During the period of suspension, the principle of ‘no work no pay' would be followed”. Dunlop Factory Employees' Union General Secretary S. Ramachandran said shortage of raw materials was the reason for halting production.

“We want Chief Minister Jayalalithaa to intervene and resolve the issue,” Vice-President, Arunachalam, said.

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