Operations resume at M&M's Nashik plant

Our Bureau Mumbai | Updated on March 07, 2011

Mahindra & Mahindra announced on Monday that production at its Nashik plant has now returned to normal after a flash strike on Sunday by workers demanding wage revision for a section of the workforce.

The company expects the loss of production to be made good soon and does not expect any impact of the strike in the short term on its sales volume. Mahindra, however, did not mention the extent/value of the production loss or the final deal it had reached with workers.

“Workers at the Nashik plant in Maharashtra went on a flash tool down strike from Sunday in support of the union's unlawful demands related to wages and service conditions for new grade workmen. This is in continuance of the hunger protest which had been initiated from March 1, 2011. Production in all shops of the plant is back to normal from today,” said the company in a statement.

While calling the strike “illegal” because it was “launched without giving any notice”, it said the Mahindra management and union had entered into a long-term settlement in 2009 covering an increase in wages, productivity and service conditions, during the currency of this settlement.

“As per the agreement between the management and the union, the next wage revision for the workmen is due in February 2013. The union and employees and the management last week proactively offered to increase the ad hoc allowance of all entry level workmen at Nashik plant,” said the statement. The Nashik plant produces models such as flagship SUV Scorpio and Xylo.

Published on March 07, 2011

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