Thursday, 7 March 2013

Tool down strike at Mahindra's Nasik plant continues



In an another bitter post to write down for us this morning, the workers at Mahindra & Mahindra's Nashik plant continue to be on tool down strike even today. The tool down strike was started over new wage settlement issue on Tuesday evening.

Seems like the workers strike over wage settlement issues have become a trend in the industry and during the appraisal cycle, you could expect one or the other company's workers to have a tool down strike.

The facility, which manufactures models like Bolero, Scorpio, Xylo, Quanto and Verito, suffered a production loss of 500 units because of the tool down. On Tuesday, M&M lost 90 units of production. A statement issued by M&M said the company will not have an immediate impact on the sales as it has three-weeks' stock in the pipeline.

An auto industry analyst requesting anonymity said, "Steep wage hikes at MarutiBSE -0.06 % and Hyundai have set a benchmark for others. But then, Maruti and Hyundai could afford such hikes based on the volumes they produce out of one plant. For M&M to replicate that will be very tough." M&M confirmed receiving a notice from the employees' union at the facility on Tuesday. The workers at the Nashik plant have been reportedly protesting for higher wages after the three-year wage pact lapsed earlier in February this year.

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