After a prolonged tri-partitie negotiations between government authorities, district collector and the management, MRF management on Wednesday lifted the lock-out at its Arakkonam plant. The company had announced lock-out on May 17 due to a sit-in strike by a small group of dissident workers, who were allegedly intimidating and threatening other workmen.

It is reported that about 1,000 workmen reported for work on the first shift on Wednesday. However, rival union claimed that only a part of the 1,200 workmen of the plant reported to duty and the remaining continue to go ahead with their dharna in front of the labour commissioner?s office in Chennai till their union get recognised and wage revision announced, said a union leader here.

According to a statement, MRF said that the recognised MRF Arakkonam Workers? Welfare Union, after a prolonged bilateral discussion with the management, signed a settlement on May 9, 2009. The settlement envisages substantial benefits to the workmen including increases in house rent allowance, washing allowance, attendance allowance, shift allowance, and conveyance allowance.

With this settlement, some of the employees would receive a hike of upto Rs.5,000 in their total monthly pay packet. Many of the long-pending issues were also sorted out. Each workman also received an ad-hoc payment of Rs15,000 as agreement benefit. The retirement age which was earlier 55, has now been increased to 58 years, thereby increasing employment security.

The problem arose since a group of dissident workmen allegedly decided to scuttle the MRF Arakkonam Workers Welfare Union from signing the agreement with the management. It is expected that the Arakkonam factory would return to full level of operations in the next few days, the statement further said.

It may be recalled that the rival union went on sit-in strike in front of the factory premises since the first week of this month, seeking recognition to their union apart from due wage revision. The union claimed that their union is the largest one and should be recognised. They union members, numbering into over 3,000 held a dharna infront of the labour commissioner?s office in Chennai a few days back but in vain.

Following the intervention by the district collector, the management has finally agreed to lift the lock out. It is believed that the management will spruce up its lost production during the strike days to meet the OEMs demand.