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March 11, 2000

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Emotions explode as Dunlop reopens Bengal unit after two years

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Zakia Maryam in Calcutta

Tyre major Dunlop India Limited's Sahaganj unit in West Bengal reopened on Saturday after two years, ending the plight of the company's 4000-odd workers who have been jobless since its closure.

The company, according to its managing director M D Shukla, would resume production within a month.

In his brief speech to workers at the factory premises, Shukla said Dunlop India chairman Manohar Rajaram Chhabria has sent a fax message from the US congratulating the employees for their cooperation and reminded them of their responsibility.

Shukla was accompanied by senior Dunlop officials during the 'reopening ceremony' which was marked by a riot of colours and an explosion of emotions.

Among the notable absentees were chairman 'Manu' Chhabria and his family members. The management had claimed that Komal Vazir, Chhabria's daughter, would attend the reopening ceremony, but she did not, due to "technical problems".

However, Shukla told rediff.com that "somebody from the Chhabria family would arrive in Sahaganj within one month".

Their absence did not dampen the joyous mood. This, evidently, was an eagerly awaited moment. Workers danced to impromptu music. And raised pro-management slogans. Their womenfolk sang gaily. Then, they marched energetically in a procession to the red-walled factory premises to report for 'duty'.

Relatives of the employees and curious onlookers, who have been waiting for long on either side of the tree-lined cobbled road leading to the factory, waved at the employees.

Outside, a number of loud-speakers let loose the trade union leaders' pleas for extending cooperation to the management in rejuvenating the company. The messages also highlighted the unions' struggle for the company's revival.

The joyous resurrection was preceded by the two-year lay-off which was marked by mental and physical unrest among the workers and their families.

Kamala Devi, who like many other sufferers, had returned to Bihar after the company's closure, said, "After my husband, who was the lone breadwinner in the family, lost his job due to the closure, I started tailoring clothes.

"However, what I earned by becoming a seamstress was too meagre to make both ends meet and I had to work as a maidservant at an affluent neighbour's house. My son has always dreamt of becoming an engineer, but the sudden lockout has put paid to his hopes."

The experience of Kailash Dubey, another worker from Bihar, is equally moving. "I had to sell off the furniture, the ceiling fans and my wife's scant jewellery to ensure that my kids continued their studies and the family remained in one piece. However, all this was to no avail. My son (a class VII student), was literally kicked out of his school because we failed to pay the fees.

"Many of my colleagues succumbed to the continued humiliation meted out to them. Today, as the unit has been reopened, I feel that the Lord has answered our prayers. Saheb, hum logon nay pichhlay do saal mein jo takleef sey guzray, bhagwan woh din dushmano ko bhi na dikhaye (Let not even my worst enemies experience the kind of suffering we underwent during the two-year lay-off period)." Tears rolled down Dubey's cheeks as he said that.

Although the workers are euphoric, industry experts seem sceptical about the future operations of Dunlop India. "How can a company with only Rs 200 million in its coffers, talk of guaranteeing a stable future for its workers?" a Dunlop observer contended.

Shukla has, however, made light of these charges. "Chairman Chhabria has assured me of pumping in more money into the company, if required," he told rediff.com.

Dunlop India's virtually nil market-share is a point being debated among industry observers. However, Shukla said the company had already received sizeable institutional and exports orders.

"Therefore, talk of our handicap in establishing a good market-share does not hold water. We have received orders for aero, OTR, industrial rubber products, and tyres and these will be enough to ensure the continuity of production at the Ambattur and Sahaganj units for at least a month."

Shukla further said that the Sahaganj unit had already received orders worth Rs 330 million and hoped it would regain its old institutional market soon.

Some Rs 200 million earmarked for production are enough. The break-even point of the production per month is targeted at Rs 330 million, Shukla said.

"We have very experienced engineers and a credibility for maintaining quality of the products. We hope it's not impossible for us to meet the target," he said.

Dunlop India's management would assess its performance every month to enhance production and start a refreshers' course for engineers.

Raw material stored at Dunlop's godown would be disposed of. "We believe in quality, not in quantity," an official said.

Neither the Centre for Indian Trade Unions -- the powerful Left-controlled trade union -- nor any representative of the Jyoti Basu government was present during the reopening function. This, industry observers suspected, could be a pointer that all is not well with the company's equation with the state government.

Dunlop India had announced suspension of operations at the Sahaganj unit on the midnight of February 7, 1998. It had 4,500 employees.

Faced with a chronic financial crisis, the unit was referred to the Board for Industrial and Financial Reconstruction. The employees did not get salaries for two months when the notice of suspension of operations was pasted on the gate.

Shocked by the closure, the employees took to agitation. Things reached a boil when the management asked them to vacate the quarters in the factory compound.

Faced with starvation, a newly-married employee committed suicide. Three more followed suit.

Dunlop India's officials privately admitted that around 40 workers had died of starvation. However, trade union sources claimed that the toll was 60.

The issue rocked the state legislature. Political leaders lent their support to the workers' cause.

By 1999-end, hopes of reviving the unit brightened when the management and trade unions reached an agreement. But they dimmed as quickly when a CITU-supported union differed on the revival package.

The differences were resolved following the intervention of West Bengal Chief Minister Jyoti Basu. Early this year, after a meeting with Basu, the management announced that it would reopen the unit on March 11 .

Chhabria, who is facing charges of violation of India's foreign exchange rules, has been in Dubai (in the United Arab Emirates) for years. He is also accused of siphoning off Rs 2 billion from the company. In this context, the trade unions had often charged Chhabria of wanting to wind up Dunlop India in order to consolidate his more lucrative business network in the Middle East.

Additional inputs: UNI

ALSO SEE

Dunlop may reopen Bengal unit in March

Unions reject Dunlop revival plan, demand unpaid wages

Bengal denies concessions to Dunlop, says management must win back faith of FIs, BIFR and workers

Manu seeks to ward off takeover bid, recasts Dunlop board, assures revival

Dunlop employee's suicide sparks unrest; Bengal govt urges Centre to act against Manu Chabbria

Plans galore, but Dunlop still has miles to go

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