CEAT signs three-year collective agreement

AGREEMENT: CEAT Sri Lanka, the country's top tyre maker announced the successful conclusion of a comprehensive three-year collective agreement with its trade union at the Kelaniya Plant, and said it expects significant improvements in efficiency and productivity levels as a result.

This follows a similar agreement concluded at its Kalutara Plant a few months ago.

Eight months in the making, the new collective agreement, will ensure industrial peace at the company's manufacturing plants, which together services a bulk of the country's commercial tyre requirements, and also accounts for noteworthy export volumes.

Hailing the collective agreement as "historic," CEAT Sri Lanka Managing Director Oscar Braganza said: "We are confident that this agreement will represent a new chapter in the continuing progress of CEAT Sri Lanka, by being a catalyst to higher output which will substantially improve the company's competitive position."

He said the labour union had committed to ensure agreed productivity improvements, and the management of CEAT Sri Lanka had agreed to pay a productivity linked Production Bonus, based on the achievement of the enhanced production levels.

"The improved efficiency will lend significantly greater impetus to the company's future plans to further increase its presence in the Domestic and International markets," Braganza added.