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Labour problems may impact production: Hero Honda

Our Bureau

New Delhi, Oct. 21 At a time when Hero Honda is launching new variants to boost festive season sales, it is facing challenges in its manpower situation. With a section of its casual and contract employees protesting on a range of issues, it is estimated that the production loss could be around 800 units on a daily basis.

However, the company categorically states that its production is on track. “Production is going on in full swing at Dharuhera,” said Mr Pawan Munjal at a press briefing after announcing its results.

According to the company’s trade union president, Mr Satish Kumar Yadav, there was an impact on production which may have to be compensated by working additional days.

“The peak capacity at the Dharuhera plant can go up to 6,200 units on a daily basis. But since the protests started last Sunday, we are producing around 800-1000 units less daily,” he said. The protests pertain to a range of issues like wage hike, absorbing additional casual workers as permanent employees and recognition of a separate union.

The company is already producing nearly 5,800 units at Gurgaon plant daily.

The protests by workers continue despite the remunerations being higher than the minimum wages stipulated by the Haryana Government. “Hero Honda continues to be affected by labour problems even though its wages are much higher than the government norms,” said Deputy Labour Commissioner for Gurgaon, Mr G.S. Thakur.

While the norms require the company to pay minimum of Rs 3,586 monthly, he said that company was paying in the range of Rs 5000-7000 to its casual and contract workers.

Regarding the outlook for the festive season, worker sources indicated that production schedule was being maintained and there is no slowing of demand.

More Stories on : Outlook | Trade & Labour Unions | Two/Three Wheelers | Hero Honda Motors Ltd

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