MRF, India's leading tyre manufacturer has declared a lockout at its Kottayam plant after labour unrest. MRF in its filing with the Bombay Stock Exchange has said it had declared the lockout at Kottayam after it was unable to rectify the labour unrest that started on Saturday.
The labour unrest at MRF started on Saturday after a supervisor did not approve an unauthorized leave of a worker. The ensuing argument lead to a walkout by the workers and they did not return to work until Wednesday. The management of MRF's Kottayam plant have refused to comment on this issue.
MRF has suffered a loss of Rs22 crores after not operating for four days. The tyre maker employs about 1,350 workers at Kottayam and manufactures tyres and tubes. This is not the first time MRF has declared a lockout at its Kottayam plant. MRF and unions have had disputes which were not completely resolved.
MRF is already under pressure financially after sales from overseas markets declined. The tyre manufacturer had suffered a loss of over Rs.300 crores in 2007 after declaring a lockout at its Chennai plant.