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Government Can’t Intervene in Dunlop India Crisis

The labour minister in the Indian State of West Bengal has admitted there is not much the state government can do to resolve the problems between Dunlop India and union groups.

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This disclosure, reports the Times of India, came after the minister received a letter from company representatives explaining their decision to suspend production.

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Mrinal Banerjee, the labour minister, said he would meet with union leaders on Dec. 2. "We will talk separately with unions and the management and then plan a tripartite meeting,” he said. “But this is all we can do. For, this is not a sick company and the management is simply saying that it has failed to run the factory."

Commenting on Dunlop India chief managing director Pawan Ruia’s Nov. 23 assurance that production would restart any time within 15 days and three months provided the state government offered relief and the banks working capital, Banerjee said: "The management will tell us that it would continue with the suspension of production status by paying workers Rs 2,000 per month as allowance. It’s the unions that have backed out after agreeing to it." (Tyres & Accessories/Staffordshire, U.K.)

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