Moneycontrol
Last Updated : Feb 20, 2019 05:52 PM IST | Source: Moneycontrol.com

Royal Enfield employees strike results in production loss of 3,000 units

The strike has coincided with the ramp-up plans for the Interceptor 650 and Continental GT 650.

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A week after a section of the workforce employed at Royal Enfield's Oragadam plant near Chennai went on strike, the niche bike brand has suffered a production loss of 3,000 units till date, sources told Moneycontrol.

The strike has coincided with ramp-up plans of the Eicher Motors-controlled brand for the Interceptor 650 and Continental GT 650, both of which were launched in November.

Though the management at Eicher Motors did not shed light on the loss in production, it has already declared the strike as illegal. Royal Enfield had cut FY19 production guidance by 25,000 units to 9.25 lakh.

This is due to the earlier 50-day strike that took place in September last year; and along with a general slowdown in demand, including a slump from one of Royal Enfield's biggest markets - Kerala.

Eicher Motors did not respond to Moneycontrol's queries at the time of publishing the article.

Royal Enfield workers are demanding regularisation of all workers who complete 480 days of work besides revoking of all transfer orders.

As per a 2012 order of the Madras High Court, a workman, who has rendered a continuous service of 480 days in a period of 24 calendar months should be conferred with permanent status in an establishment.

Workers are also asking for a provision of bonus for everyone working for more than a month. Another demand of the workers is that trainees employed through National Employability Enhancement Mission (NEEM), an initiative by the Government of India, should not be given work suitable for permanent employees.

The Union at Royal Enfield's Oragadam plant in a statement on February 19, said that the factory employs 5,559 workers, including 1,059 permanent workers, 2,000 contract workers, 1,000 trainees and 1,500 trainees  employed through NEEM.

The previous strike resulted in a production loss of nearly 30,000 units for the niche bike maker which makes models under the brands Classic, Himalayan and Thunderbird. Production of the 650 twin bikes, the costliest bikes from Royal Enfield, was to be raised to 5,000 units a month by end of March as against around 2,500 units at present.

Waiting period on both the bikes has stretched to six months, the management said.
First Published on Feb 20, 2019 04:29 pm
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