The Hindu Business Line : Dunlop plans VRS for staff at Sahagunj, Ambattur units

DUNLOP India Ltd has proposed VRS to roughly 1,700 employees out of a total of 4,000 for reopening the two facilities at Sahagunj in West Bengal and Ambattur in Tamil Nadu. The VRS will be given with an understanding that they will be absorbed as and when required.

According to sources, the total VRS liability is estimated to be over Rs 12 crore. The average payout per employee is estimated at Rs 75,000, payable in six monthly instalments.

Dunlop has proposed retaining up to 1,300 employees at Sahagunj out of a total 2,700 and the rest will be given VRS. The situation is comparatively better in Ambattur where the company has proposed retaining close to 1,000 out of a total strength of 1,300.

Though the labour unions at Sahagunj, where the company is currently negotiating a wage agreement, are still resisting the proposal for deferred payment of VRS dues, the company sources are hopeful of resolving the issues shortly.

Taking a cue from a previous agreement between the labour unions at Ambattur and the Dunlop management, the Ruia group has also proposed paying an average of Rs 20,000 per employee, for settling the past wage liabilities at Sahagunj facility.

When contacted, the Chairman of Ruia group, Mr P.K. Ruia, said, "We are extremely hopeful of striking the wage agreement in the next few days."

He had also met the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, here on Tuesday, his first meeting with him since taking over the ailing Dunlop India from Jumbo Group in November.

CM's assurance: The State Government sources later said that the Chief Minister had assured every support for speedy reopening of the Sahagunj facility. The company was also asked to submit a draft proposal of the labour agreement to the State Government for ensuring faster negotiation.

Mr Ruia said the State Government had assured "maximum possible waiver" to the company on its outstanding sales tax and electricity bills.