Latest Car News in India

Friday, October 21, 2011

By Pranjal Gera

Maruti Manesar plant strike ends after successful talks of Thursday

The two week long strike at Maruti’s Manesar plant ended today with management and workers reached to an agreement in the presence of Haryana government. The workers at the Maruti’s Manesar plant called off the strike after company management agreed to take back the 64 workers, which were earlier suspended by the firm. However, another 30 workers will remain suspended. Moreover, the striking worker’s demand of taking back about 1200 casual workers has also been accepted by the company management.

The company has also agreed to set-up separate committees for grievance rederssal and labor welfare, so that a harmonious work environment at the Manesar plant. Both of these committees will have representatives from both worker’s and management’s side. The workers and management was in several rounds of talks since Monday. Following the inclusive rounds of talks on Monday and Tuesday, a breakthrough was expected after Wednesday’s talks.

The end of this two week long strike had a bullish impact on company shares in the early morning trading with shares of the firm surging 3 percent. After reaching a height of 1117.55 in the early morning trading, the company shares were trading 2.4% higher at Rs 1102.25, at 9:30 am.

The labor strike at Manesar plant started on 7th October, when workers went on a strike demanding the reinstatement of 1200 casual as well as over 90 suspended workers. The company had suspended about 50 workers during the current impasse, all of whom have been taken back by the company after yesterday’s agreement. The total production loss of the company has reached 12,600 cars so far, resulting into a revenue loss of over 630 crore.

On Thursday, the total production at the Gurgaon plant stood at 1,997 vehicles. On the other hand, the production at the Manesar plant stood at 200 units.

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