Hero MotoCorp in settlement talks with workers

Hero MotoCorp, the country’s largest two-wheeler manufacturer, is talks with workers at its Gurgaon spare parts facility to enable smooth transition of the operations to its upcoming Neemrana facility in Rajasthan.

Sources said around 400 workers have refused to shift to the Neemrana facility, while some have opted to join the main plant in Guragon. However, some have agreed to move to Neemrana.

The company is negotiating a settlement package with those workers, mainly contract labourers, who do not want to shift. A labour union representative told BusinessLine : “These workers wanted to go to the facility on company payroll which the company did not agree. While 5-7 workers have already received the settlement package, the picture for the rest would be clearer in one or two days.”

The package is likely to be three months’ salary plus some benefits. Those involved with negotiations said that settlement package is based on the guidelines laid down by the Government. In fact, it is higher than what the guidelines envisage, a company official claimed. A Hero MotoCorp spokesperson, said, “We are currently in discussion with the workers for a smooth transition from the existing facility to the new state-of-the-art Global Parts Centre at Neemrana. We are hopeful of reaching an amicable solution at the earliest.”

The company plans to start its fourth plant at Neemrana by the year-end. With this, the company’s total installed production capacity will reach over 7.65 million units per year . Its other facilities are at Haridwar, Gurgaon and Daruhera.

The industry is facing problems across the Gurgaon-Manesar belt. Satbir Singh, President CITU, Haryana said: “The Labour Commissioner has visited this area four times in the recent past, but has not cared to meet workers’ representatives. If they are not ready to have a dialogue, how can labour problems be solved?”

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