Apollo addresses plant lockout in India

June 21, 2010

The majority of employees at Apollo Tyres Ltd.'s plant in Perambra, India, want to return to work, officials from the India-based tiremaker believe.

The plant currently is undergoing a lockout, "the result of the unreasonable stance taken by a small percentage of the workers" during contract negotiations with Apollo. "Despite our best efforts, the trade unions resorted to an illegal 'go slow' (measure), forcing management to take disciplinary action.

"We know for a fact that more than 85% of the workers are keen to close this negotiation and return to work. However, they are sadly being held ransom by a small minority. We are working with everyone with an open mind and doing our best to resolve the issue at the earliest (date) possible."

The factory supplies nearly one-third of Apollo's total daily capacity in India, which totals around 1,000 metric tons. "The lockout impacts our top line and some of our customers," say officials.