Falcon Tyres shows indications of restarting production

The factory had ceased operations in December last

Following a stir of employees that lasted for 99 days, Falcon Tyres shows signs of resuming operations, here, on Monday. The employees have remained skeptical of the company and will decide on the future course of action at a meeting of the Falcon Tyres Employees’ Union, convened on Tuesday.

The company had ceased operations, owing to financial issues, in December last year, jeopardising the future of more than 2,000 employees of the factory. The Employees’ Union had launched an indefinite stir in the month of March, in front of the Deputy Commissioner’s office, demanding payment of salaries and resumption of the manufacturing process.

During the day, one of the major shareholders of the company, Pawan Kumar Ruia, who was earlier blamed for the company’s debacle, participated in the rituals pertaining to restarting the factory.

Works on cleaning and lubricating the machinery at the factory were taken up by the enthused employees. Following the recent developments that has increased the employees hopes, they were also seen exchanging greetings.

Production

Owing to diversion of funds of the company to other ventures of Ruia and other alleged mismanagement of resources, Falcon Tyres was forced to cease production. The employees of the factory were not paid salaries, forcing them to protest against the company management.

With the employees continuing their stir for more than three months, the State government was forced to intervene and several rounds of meetings were held to meet the demands of the employees. While a meeting was held with Labour Minister Parameshwar Naik on March 13, Tourism Minister R V Deshpande had chaired two meetings on the issue on April 29 and June 18. During the meetings, Food and Civil Supplies Minister Dinesh Gundu Rao was also accused of compromising the interests of the employees by siding with the owners.

During the last meeting, five decisions were taken, which included restarting the company on July 1 and resuming manufacturing on July 5. The company management was directed to pay pending salaries and PF of employees in a phased manner. The State government also agreed to waive the taxes of the factory for six months, as part of the bargain.
Stir to continue?

D V Devaraj, president of the union, that even though the company has restarted, production is yet to begin.

The union will take a call on whether to continue the struggle, based on further developments in the next few days.