Workers at two-wheeler major Hero MotoCorp's Gurgaon plant continued to slow down output for the second consecutive day today demanding a wage hike, resulting in an estimated total production loss of around 1,000 scooters.
Workers at two-wheeler major Hero MotoCorp's Gurgaon plant continued to slow down output for the second consecutive day Thursday demanding a wage hike, resulting in an estimated total production loss of around 1,000 scooters.
"We noticed some deliberate tampering of the settings of production equipment by workers at our Gurgaon plant Thursday as well, which has marginally compromised the day's output," a Hero MotoCorp (HMC) spokesperson said.
The spokesperson, however, declined to share the quantum of production loss.
There has been no impact on production at the company's Dharuhera plant, he added.
"We are confident of making up any marginal shortfall in production even as we remain committed to engaging in talks with the union to reach at an amicable solution," he said.
According to sources, the workers have resorted to slowdown of one production line, which produces scooters.
"The slowdown has impacted scooter output. The plant usually rolls out 2,500 units of scooters every day. However, due to the slowdown, there has been a total loss of around 1,000 units in the last two days," a source said.
HMC has three production lines at the plant and rolls out around 7,000 two-wheelers every day.
The management and the workers will meet again for fresh rounds of talks tomorrow in the presence of Haryana Deputy Labour Commissioner (DLC) to break a five-month long deadlock over wage settlement.
"They are resorting to labour action even while the conciliation proceedings are going on with the labour department...This kind of immature and irresponsible activity by the union does not really reflect well on the conducive atmosphere in which we have been striving to reach at a reasonable, sustainable and sensible settlement in a patient manner," the spokesperson said.
However, Hero MotoCorp Workers Union (HMCWU) President Kawalpreet Singh denied that workers have resorted to any slowdown of production.
The initial wage negotiations, which started during late-August 2012 after submission of the demands, remained inconclusive and fell apart on January 21. The matter was referred to the DLC of the region for further deliberations. Workers are demanding a monthly wage hike of up to Rs 18,000 over a three-year period.
However, HMCWU, which is representing the nearly 1,200 permanent workers, claims that the management is offering a hike of around Rs 6,500 per month spread over three years, which was the hike for the company's Dharuhera plant's workers during the three-year agreement signed in 2011.
The permanent workers are also observing silent protest by wearing black badges and are not taking tea and snacks provided by the company to press for their demand. Their colleagues at the Dharuhera plant are too wearing black badges during work in their solidarity.
Hero Motocorp stock price
On September 04, 2015, Hero Motocorp closed at Rs 2292.55, down Rs 37.4, or 1.61 percent. The 52-week high of the share was Rs 3271.80 and the 52-week low was Rs 2252.00.
The company's trailing 12-month (TTM) EPS was at Rs 128.86 per share as per the quarter ended June 2015. The stock's price-to-earnings (P/E) ratio was 17.79. The latest book value of the company is Rs 327.58 per share. At current value, the price-to-book value of the company is 7.00.
Set email alert for
ADS BY GOOGLE
video of the day
Mkt can rebound post Sep 17, dont let go now: Damani, Kela