Apollo Tyres has reported the initiation of a lockout at its Perambra, India, factory in Kerala.
“With reference to the earlier announcement, Apollo Tyres has now informed BSE that the management has declared lock-out at company’s manufacturing facility at Perambra,” stated an official filing, citing “labor unrest relating to long term settlement negotiations” as the reason for its action.
According to India’s Business Standard, the lockout at the facility, which produces a quarter of the tiremaker’s daily output, will cost Apollo an estimated Rs 30 million per day. Some 100,000 cross-ply truck and bus tires are produced at Perambra each month.
In April the tiremaker informed the government that workers at the plant “have resorted to go-slow, resulting in considerable drop in the production. The workers have resorted to go-slow as a pressure tactics for bargaining long-term settlement.”
At the time, however, Apollo said it was “confident of resolving this matter amicably within a reasonable time.” (Tyres & Accessories)