STRIKE ON MRF

Madras Rubber Factory

----- KUNAL THAKUR (136) PRAVIN DHARPURE

INTRODUCTION Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing company located in Chennai, Tamil Nadu, and India. The name was later changed as "Manorama Rubber Factory". MRF is mainly involved in making vehicle tyres. It is India's largest tyre manufacturing company, and among the dozen largest worldwide. It exports to more than 65 countries.MRF is the sister concern of the leading malayalam daily "Malayalam Manorama".The founder of the MRF, Mr.K.M.Mammen Mappilai was the brother of late Mr.K.M.Mathew, ex-chief editor of "Malayalam Manorama"

HISTORY

Services (India) Ltd. 2000 The Company has set up shop in Dubai to target markets in the UAE as part of its export thrust. MRF has launched a steel-belted premium radial tyre variant called `MRF ZVTS'. 2002 MRF Tyres Ltd sees slump in commercial vehicle tyre market and passenger car growth has also declined. High court dismisses the writ petition filed by MRF Employees Union challenging the order of dismissal of a worker, who was the secretary of the union. Advertising Standard Council of India Quashed the objection raised by MRF by upholding J K Industries claim of being India's Number one tyre maker in the fourwheeler segment. 2003 MRF and Bridgestone are ranked highest in a tie for the second year in a row in customer satisfaction with original tries according to JD Power Asia Pacific. Shri K.M. Mammon Mappilai, Chairman and Managing Director expired on 2 March. Mr. C.D.Khanna has ceased to be the Director of the company. And Mr. K.S.Narayanan has resigned from the board of MRF. Mr. N.Kumar and Mr. Ranjit Isaac Jesudasen have been appointed as the directors of the company. Mr. K.S.Narayanan ceased to be director of the Company with effect from 17 April 2003, consequent to his resignation from the Board of Directors. MRF Ltd. has informed the Exchange that at its meeting held on 19 December 2003 the BOD has re-designated Jt. Managing Director Mr. Arun Mammon as Managing Director of the Company w.e.f 1 April 2004. 2004 MRF Ltd. has informed that Mr. Ravi Mannath has been appointed as Additional Company Secretary of the Company w.e.f. 5 January 2004. MRF Tyres is the biggest consumer of natural rubber in India during 2002-03 Ties up with Maruti Udyog to boost motorsports in India 2007 MRF Ltd launches premium truck tyre Super Lug 50-FS.

2011 MRF Ltd inaugurated its 7th manufacturing facility at Ankanpally near Hyderabad, exclusively for radial tyres. MRF Ltd crosses gross revenue mark of 10,000 crores.

Factory/plant
Tiruvottiyur City: Chennai (Madras) State: Tamil Nadu Vadavathoor City: Kottayam State: Kerala Usage, Ponda City: Goa State: Goa Icchiputhur City: Arakkonam State: Tamil Nadu Sadasivapet City: Medak State: Andhra Pradesh Eripakkam Village, Nettapakkam Commune City:Pondicherry State:Pondicherry Naranamangalam Village & Post, Kunnam Taluk, Perambalur District, (Near Trichy) City: Perambalur Thiruvall State: Tamil Nadu

Strike and Lockout for MRF and their Reason

The following reason of strike and lockout for MRF with duration are: Strike 2007: The problem started with the companys refusal to pay the cash reward to its 1,470 employees as the plant did not meet its productivity standards. 2008: No strike 2009:

UWU went on a strike, demanding reinstatement of 250 workers (most of them dismissed for unionization), recognition of the union and discussion of the salary revision with the union. 2010:

Pondicherry went on strike today, halting production. The staff unions said this was in response to not recognizing their union and the jailing of two of their colleagues (in Pondicherry).
Resolving the strike for MRF

1. The first strike in 2007 and resolved in two and three month and their problem is the employee didnt get the cash reward from the company and they didnt meet its productivity standard. So on Feb. 2008 the state government intervention that this lockout was lifted and this problem was temporarily resolved. 2. The second strike in May 2009 that UWU went to the strike because of three reason is that demanding reinstatement of 250 worker (most of them dismissed unionization), recognisation of the union and discussion of the salary and revision of union. For resolving this conflict what union had taken the step: a. The strike was supported by the workers at MRF Pondicherry, who followed suit by engaging in strike. On May 17th 2009 MRF management announced a lockout. b. Then the union move to the High Court seeking a solution for the troubles. On May 19tth 2009, the HC directed the two unions UWU and AWWU and the MRF management to maintain the status quo, subject to the management taking a decision on a recent wage settlement agreement. For this the lockout was

lifted on May 28th 2009. However worker didnt return for the work and stem in a demand. c. For not getting the best solution the union worker had moved to the Supreme Court for resolving the strike and gets the best result. The union also wanted the court to direct MRF and labour department to implement International Labour Organizations (ILO) directions about recognition of the majority union.

d. Supreme Court had refused to intervene in view of the petition coming up for hearing in the HC on June 9th 2009. The counsel said in the court that there were no laws regarding the recognition of trade unions in Tamil Nadu. For this it expressed that the need for considering the amendment to trade union acts and observed that It is high time the Government considered amending the Trade Union Act. The strike brought dire effects to the company. e. Troubled by the labour issue at MRF, Honda Motorcycles and Scooters Industries (HMSI), a major customer of the company turned to Falcon Tyres, MRFs competitor. Many of the MRF dealers were also affected by the strike. The union too had to take the beating as many of its members were arrested during the protests including hunger strikes. The strike continued through July and August, reducing the production at MRF. MRF blamed the strike at Arakkonam on militant unionism. The management of MRF sincerely believes the misled workmen, the general public and the Government agencies should not be influenced by vilification campaigns, being relentlessly carried by the splinter group and their leaders.The company also said the strike had cost it more than INR 1,000 crores. f. After this on Sep 2009 the HC directed the State Labour Commissioner to verify which union has got majority. The court also asked the MRF management to approve whichever union proves the claim. Eventually the union won the battle and management wants to recognize it. After all of this in 125 days the company had not lost the business nor would it be easy to gain back worker again. g. All of this finally worker call off strike and resume the work from tomorrow morning as a first shift. On October 20 we have union elections in Tiruvottiyur and we withdraw our strike.