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LATEST NEWS UPDATES | Labour disputes rock Detroit of India

Labour disputes rock Detroit of India

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published Published on Oct 18, 2010   modified Modified on Oct 18, 2010

The city has come to be known as the Detroit of India for its large concentration of automakers, but a series of labour disputes have rocked it, putting a question mark over industrial peace.

Car markers such as Hyundai Motor India, German luxury car maker BMW and Ford Motor India besides Finnish handset manufacturer Nokia India have set up their plants on the city outskirts employing more than 23,000 people. As the city and other parts of Tamil Nadu woo more foreign and domestic companies, employees of several factories had resorted to strikes demanding recognition of Trade Union, good pay package.

Employees of Hyundai Motor India went on a flash strike in June this year demanding that the management reinstate 67 employees dismissed earlier for demanding recognition of trade union. Similarly, employees of Nokia India also resorted to strike early this year demanding wage revision. About 75% of 8,000 employees working at Nokia’s Sriperumbudur facility constitute women employees.

A tripartite agreement was then signed between Nokia India Employees Progressive Union and the management in the presence of Tamil Nadu labour minister T M Anbarasan to sort it out. Similarly, another tripartite agreement was also signed with the Hyundai Management which has assured it would take back some sacked employees. However, the latest in the series of strikes is in all three facilities of tyre major MRF at Arakkonam, Thiruvottiyur and in Puducherry.

According to sources, each facility produces truck and radial tyres and contributes about Rs 4,500 crore revenue to the company’s total sales volume. When a strike is called in any unit, there is a shortfall in production of at least 5,000 units of tyres, they said. Union sources said the employees were pressing for recognition of union,wage revision and removal of surveillance cameras. “Employees were against installation of CCTVs in Tiruvottiyur plant since it invaded their privacy.. ”a Union member claimed.

However MRF Workers’ Union president and senior Advocate V Prakash said they would resort to a strike in future in a planned manner. “Right now we are having Union elections for our Tiruvottiyur plant.. after that we will decide on how to take up the issue... ”, he said. About 13,000 contract workers of the public sector Neyveli Lignite Corporation have also been on strike since September 19, pressing for various demands including raising of wages and issues relating to bonus.

As various rounds of talks failed to yield results , Tamil Nadu chief minister requested the Prime Minister’s intervention to sort out the issue , saying the situation has not returned to normal and continued low turnout of contract labourers was likely to affect power generation Political parties including CPI(M),CPI and AIADMK have also extended support to striking workers and plan to conduct a series of protests across Tamil Nadu on October 21 and also against the goverment not taking any steps to end the strikes.

“Trade union rights are denied in multinational companies in the State and the government also connives with the management in all anti-labour activities” ,Left parties alleged AIADMK General Secretary J Jayalalithaa in a statement urged the Tamil Nadu Government to prevail upon the Centre to take immediate steps to fulfil demands of NLC contract workers But a top government official maintained that industry relations were “peaceful” . “Currently I would say it is very harmonious and very peaceful... ”, he said. On the strikes by employees, he said “these kind of things do happen now and then” .

According to government Policy Note, the number of strikes in 2009 was about 36 and there were 13 lockouts, of which 2.10 lakh mandays were lost. This is comparatively lower to 2008 which witnessed 56 strikes and 30 lockouts with 3.87 lakh mandays lost, it said.


The Economic Times, 18 October, 2010, http://economictimes.indiatimes.com/news/politics/nation/Labour-disputes-rock-Detroit-of-India/articleshow/6767341.cms


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