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Output hit at Hero plant

Source : BUSINESS_STANDARD
Last Updated: Wed, Jan 23, 2013 20:13 hrs

Production at Hero MotoCorp’s Gurgaon facility was affected today, with workers slowing production operations to push their demand for higher wages. In the first shift today, production at the facility’s third assembly line fell about 45 per cent. On an average, 1,300 two-wheelers are rolled out in the morning shift, sources said.

A member of the Hero MotoCorp Workers’ Union said, “We did not let the vendors enter the shop floor today during the morning shift. We did not cooperate with the engineers; we only did the work assigned to us. Production was lower 600 units in the first shift. But the two-wheelers produced were of the highest quality.” Admitting production was affected, Hero MotoCorp said the workers had tampered equipment at the facility. “Even as we are engaged in talks with the union of our Gurgaon plant to reach a solution, they have resorted to tampering with the equipment, marginally compromising output for the day. While we are confident of making up for it, this kind of immature activity does not reflect well on the conducive atmosphere in which we have been striving to reach a sensible settlement,” said a company spokesperson.

Hero MotoCorp produces 6,000-7,000 two-wheelers a day at the Gurgaon unit, on a two-shift basis. The company has three assembly lines at the facility.

Today’s developments follow the management’s reluctance to increase wages by about Rs 15,000 over a three-year period at the Gurgaon unit. In the latest round of negotiations at the Gurgaon additional labour commissioner’s office on Monday, the company had offered Rs 7,500 in wage settlement.

Sources in know said among other factors, the company was concerned a significant wage increase to workers at Gurgaon would lead to dissent among workers at Hero’s Dharuhera facility. In 2011, the company had increased the wages of workers at Dharuhera by Rs 6,500 over a three-year period.

Union members at the Gurgaon unit, however, said workers at Dharuhera had extended support to their demands. “They understand the living conditions in Gurgaon are much more expensive compared to Dharuhera. They are supporting us unconditionally,” said a HMCWU member.

The next meeting between the workers and the management in scheduled for January 25.




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