Rajiv Bajaj rules out shares for striking workers at Chakan

Rajiv Bajaj is categorical that there is no question of issuing shares to the company’s workforce, now on strike at the Chakan plant near Pune.

“We are a profit-making company and believe in real money for hard work. Why should I gamble with the interests of my employees? They are entitled to getting real money,” the Managing Director of Bajaj Auto told Business Line .

The agitating workers are demanding this option as the management, according to them, has not given them increments. “My answer is ‘ask for an increment, in that case, not shares’. Digressing into something like this is plain ridiculous,” retorts Bajaj.

There are companies which offer employee stock options, or ESOPs. However, there is no guarantee that these are always profitable and are perceived to be a risk-based equation.

Bajaj, likewise, does not buy the argument that ESOPs translate into loyalty. “Paying more for loyalty is not the way I see it. My senior colleagues are proud of this company and share a dream which brings like-minded people together,” he says.

In his view, even if most stock options are prime picks elsewhere, money is not everything at the end of the day. “We would rather rely on excellence than ESOPs,” says Bajaj.

The pragmatic option, he adds, is to go to the market and pick up Bajaj Auto shares for Rs 1,800 apiece and watch them grow to Rs 3,000 each. “Put your money where your mouth is,” he counters.

Wage pact

The company had signed a nine-year wage agreement in 2010, in which employees were assured a 12 per cent increment every year. This was meant to give workers “peace of mind” in the event of a downturn.

Things were going smoothly till the unions stalled the process and wanted a renegotiation. “They tried to take over Pantnagar and Aurangabad but were thrown out. They are now trying to create a stir at Chakan,” Bajaj says. According to him, while there is room to negotiate wages, there is no case for stopping work. If the strike is deemed illegal, the unions could end up being derecognised.

Bajaj Auto had to suspend a handful of workers suspected of slowing down operations at the Chakan facility since last September. Typically, the process begins with a day’s suspension, going up to two and more till the workers are suspended pending enquiry.

Enquiry under way

A Government officer carries out this enquiry, which is the case at Chakan now. This involves extensive talks with the management and workers before a verdict is reached.

While the union has been seeking reinstatement of the 13 suspended workers, this is just not possible when the enquiry is under way.

Work continues at a slow pace, with production now being supplemented at the Aurangabad plant.

The matter is now with the Labour Commissioner. Bajaj says the ideal situation would be to pave the way for the management and workers to kick off talks and resolve the impasse. The enquiry officer can, in parallel, decide if the 13 people suspended need to be sacked or reinstated.

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