Kolkata: Tyre-maker Dunlop India Ltd on Sunday declared suspension of work at its Sahaganj plant in the Hooghly district, leaving the future of over 1,200 workers in uncertainty.

In a press release, the company said, "Dunlop India management was left with no other option than declaring suspension of work at its Sahaganj plant. This understandably may delay the process of re-opening, which was planned earlier, had the unions signed the agreement. The management would like to reiterate that it remains committed to genuine production at the plant at the earliest once the unions and the management arrive at a consensus on the pending issues."

The ailing company's latest decision comes 13 days after it temporarily suspended production at the unit citing lack of demand due to the global economic downturn, and asked workers to accept a monthly subsistence allowance of Rs 2,000 till resumption of operations.

However, the management and the trade unions failed to reach an agreement on the subsistence allowance and other pending issues even after several rounds of talks.

For the first time, Dunlop had suspended its operations in 2000. It was reopened in August 2001. In December 2006, it began operations under the new Ruia management but production remained low.