The Hindu Business Line : Bajaj’s Akurdi plant must be kept going, says Pawar

The Union Agriculture Minister, Mr Sharad Pawar, took a tough stand on Bajaj Auto Ltd’s (BAL) unilateral decision to stop production at its Akurdi plant “without taking the labour unions into confidence”, and has unequivocally maintained that the “the pioneering plant must be kept going”.

The basis on which the BAL management has cut workers’ wages also came in for censure when Mr Pawar pointed out that the agreement cited by BAL to impose a wage cut was valid only in case of a drop in production in times of “acute recession”.

Reading the relevant clause from the agreement, Mr Pawar said, “For the last three to four years, I have been telling Parliament that there is 9.4 per cent industrial growth. Where is the recession?” He added that both BAL’s production and profits too, were growing at a healthy pace.

Mr Pawar was speaking to newspersons after holding talks with leaders of BAL’s two labour unions — Bhartiya Kamgar Sena and Vishwakalyan Sangathan — and the management represented by Mr C.P. Tripathi, Vice-President (Corporate); Mr P.S. Gadkari, DGM (Corporate) and Mr Kevin D’Sa, Vice-President (Finance). The Maharashtra Labour Minister, Mr Ganesh Naik, and Pune’s Guardian Minister, Mr Ajit Pawar, were also present at the meeting.

“BAL’s three plants at Chakan, Aurangabad and Uttarakhand are probably more price competitive because of tax concessions, but these were given to industry even at Akurdi in the early days,” he said.

Mr Pawar added that he would have discussions with the BAL Chairman, Mr Rahul Bajaj, and the Managing Director, Mr Rajiv Bajaj, by September 8 to find a solution to the issue.

The senior politician had stepped-in on Tuesday to help resolve the contentious situation that had arisen after production at BAL’s plant at Akurdi was stopped from September 1. The company that held taxation and government policy responsible for rendering production unviable, also told the 2,730 workers that they need not report to work, but would get full wages for five days’ of work, and half day’s wages for the sixth day.

On this point, Mr Pawar said, “They (the management) told me that five-and-a-half days’ wages, including all allowances like bonus and LTA will be fully paid for life. But as far as I can read English, there is nothing that says that this cannot be stopped sometime in the future.”

He was also assured by the management that the Akurdi land would be used to strengthen BAL’s R&D. His take on this was, “Part of this has been given to them by MIDC and as per law, BAL requires prior permission if they want to use it for any other purpose. In such a situation, I will appeal to the State Government not to grant the necessary permission.”