Pfizer settles dispute with workers over Irungattukottai plant closure

In early 2019, Pfizer had decided to shut down two of its Indian manufacturing plants — Irungattukottai (Chennai) and Aurangabad (Maharashtra)

Industrial Tribunal, Tamil Nadu has closed the dispute between pharma giant Pfizer Healthcare India Private Limited and a section of its workers, after the parties reached a settlement agreement. The dispute relates to closure of the company’s manufacturing plant in Irungattukottai and cessation of 270 workers.

In early 2019, Pfizer had decided to shut down two of its Indian manufacturing plants — Irungattukottai (Chennai) and Aurangabad (Maharashtra) — owing to lack of commercial viability. The manufacturing plants had come under Pfizer's fold, after its acquisition of Hospira, a provider of injectable drugs and infusion technologies in 2015.

Podhu Thozhilalar Sangam had raised a dispute before the Deputy Commissioner of Labour Sriperumbudur with regard to cessation of employment of 270 workmen. The negotiations talks failed and the dispute was referred to the Industrial Tribunal, Tamil Nadu, according to court documents.

After the submission of the failure report, both the parties said they have entered into a settlement with regard to the said dispute and the claims of the members of the Petitioner Union have also been settled, Industrial Tribunal noted.

As per the settlement reached on February 6, 2020, Pfizer paid members of the union about ₹4.67 crore. The Industrial Tribunal recorded the settlement and disposed of the case.