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State-owned wagon maker Burn Standard, which is under the Railways, is experiencing ’partial production hit’ after a section of contract workers began agitation for higher pay.
“There has been some problem with the Boxnhl wagon workers belonging to a contractor, and production there has been hit. However, there is no problem with other wagons and foundry sections and work is smooth,” Burn Standard DGM (P&A) G H Nag told PTI.
He said that out of around 1,000 workers, both contractors and permanent staff, problem lies with just 124 workers since Thursday.
Workers allegedly refused work on the boxnhl wagons demanding higher wages for greater productivity as demanded by the contractor.
Sources said trouble brewed after Burn Standard had reduced the fees for the fabrication job for each wagon, to Rs 57,000 from around Rs 69,000, as prices of the wagon dropped by Rs 5 lakh since November 2013.
In cumulative effect, the contractor wanted some more productivity to tide over the reduction in contract fees.
According to sources, Zen Engineering had been received contract for around 300 boxnhl wagons out of total order book of 842 such wagons.
The contractor had submitted before the management that he cannot go ahead with the contract as workers are not relenting and higher wages was not possible to bear for him.
Officials said there is no work in boxnhl wagon section since Thursday, and it may take some more days before any settlement is arrived.
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