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Auto major Mahindra & Mahindra today said production at its Nashik plant has been resumed after a day’s strike on Sunday by workers demanding higher wages.
“The workmen at the Nashik plant of the automotive sector of the company had resorted to a one-day illegal tool down strike on Sunday,” the company said in a statement. The workers were demanding an increase in wages for a section of one-third of the workmen, it added.
“Production in all shops of the plant is back to normal from March 7, 2011,” it said.
While it did not elaborate on the production losses, M&M said, “The management is confident that the loss of production will be made good soon. The company does not expect any material impact in the short term on sales volume.”
The company said the management had “proactively offered to increase ad hoc allowance of all entry level workmen at Nashik plant.”
The company’s management and the union had entered into a long-term settlement in 2009 and the next wage revision for the workmen is due in February 2013.
Declaring the strike “illegal”, the company said it was launched without giving any advance notice “in continuance of the hunger protest which has been initiated from March 1, 2011.”
The Nashik plant produces vehicles, including the flagship SUV Scorpio, Xylo and sedan Logan.
M&M scrips were trading at Rs 654.55 in the afternoon trade, down by 3.21 per cent from the previous close.
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