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Bajaj firm on shutting vehicle production at Akurdi plant

Our Bureau

Pune, Nov 1

The Bajaj Auto Managing Director, Mr Rajiv Bajaj, has reiterated that vehicle production at its Akurdi plant could not be resumed, asserting that though the workers were not responsible for the stoppage, they could not offset the Rs 100-crore loss per annum, the company incurred on manufacturing here.

The clarification comes in the wake of a face-off between the BAL management and its 2,700-strong blue-collar workforce that followed when the company shifted all vehicle production from Akurdi, to its plant near Aurangabad since September 1. Workers have since been protesting against the company’s directive that they need not come to work, but would be paid their wages till they retired.

“For a plant to be viable, it must manufacture at least one million units per annum. Every vehicle manufactured at Akurdi costs Rs 1,000 more than what it costs to produce at Pantnagar, Chakan or Waluj on account of sales tax and octroi. We are not such a big company that we can afford to lose Rs 100 crore,” Mr Rajiv Bajaj said, adding that though he had no complaints against the Akurdi work culture, it could still not offset a loss of this magnitude.

Wages directive

Though BAL has 2,700-odd workers, only 1,650 of these are directly affected by the “stay at home and get your wages” directive, since 278 are working with Bajaj dealers, and the others are in component manufacture, tool room etc. They have an average salary of Rs 1.6 lakh per annum, and Mr Bajaj says that the company has every intention of honouring its commitment to pay each of them six days’ wages till they retire. He is meeting with the Union Agriculture Minister, Mr Sharad Pawar, and workers’ representatives on November 5 to try and resolve the contentious issue.

Related Stories:
Taxing truth at Akurdi
Akurdi plant not shut down, says Bajaj Auto
Bajaj offers VRS, 2 other options to Akurdi workers
Meet to hear Bajaj Auto Akurdi issue

More Stories on : Trade & Labour Unions | Two/Three Wheelers | Bajaj Auto Ltd | Maharashtra

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