The Hindu Business Line : Labour trouble plagues auto cos in Gurgaon

SEVERAL automakers with facilities in the Gurgaon region are feeling the heat as labour trouble at their plants continues, even as alternative arrangements to restore productivity are being implemented.

An official from Japanese bikemaker Honda Motorcycle and Scooter India (HMSI) said the strike at their Gurgaon unit, which started last month, has resulted in a loss of about Rs 100 crore, with production at the unit slowing down.

"We have been able to scale back our production to 600 units a day and are confident of increasing this figure to 1,000 units soon," a HMSI official said, adding that prior to the strike the plant had a production level of 2,000 units per day.

Before the strike the company's labour force had 1,911 workers, of which only 38.6 per cent are working at the plant, with the rest still striking. "The strike commenced after a few workers were suspended and dismissed for creating trouble and damaging products at the plant," the official said.

Industry sources, meanwhile, said that labour trouble has gripped the facilities of more than seven automakers (mostly manufacturers of auto components) in the region, with workers going on strike to demand higher wages.

Auto components maker Omax Autos is also facing a strike, though an official said that alternative arrangements are being made to ensure that overall productivity does not suffer.

"We have been facing labour trouble for about 10 days now. In fact, production at our Haryana units had gone down to 40 per cent though we have been able to scale it back by getting in labour from outside and through other arrangements. We have also shifted some production of components to our units located in other States so that orders do not get affected," an official said.

However, about 700-800 workers at Omax are still on strike, the majority of them being contract workers.

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