Honda gets moving on the track

The five day long strike at the Hero Honda's Gurgaon plant ended today as the management and the striking contractual workers reached an agreement.

The Gurgaon plant, producing around 5,800 vehicles each day, has been in the middle of labor unrest since April 10 with 2,000 contract workers striking work demanding among other things regularization of jobs, higher wages and medical facilities among other benefits.

"Workers have called off their strike and the management has assured to review their demands favorably and sympathetically," a company official said and the work at the plant is expected to resume from Sunday. Mr Pradhan Leader of the agitating workers affirming to the news said "The workers have been given a 30 per cent raise in salary along with two days of casual leave every month. We have also been given medical benefits as per the company rules.”

The company- India's biggest motorcycle company has decided to step up production to 6,500 units per day to cover up the production loss which have been estimated to mount to around Rs 100 crore. Hero Honda, however, claims that the loss in production will not impact sales in the long-term as it had enough inventory levels and also had vehicles in transit. Moreover, its second plant at Dharuhera was functioning normally, and officials are confident to make up for the production loss once the stir at Gurgaon plant ends.

The strike started after an incident last Friday at the plant, where permanent workers reportedly beat a contract worker. The incident was a flashpoint to the widening gap between workers, who are paid disparate salaries. Haryana's additional labor commissioner MS Yadav, along with the local administration had been conducting a series of meetings but there came no breakthrough and the deadlock between Hero Honda management, contractors and its contractual workers continued as the talks between the three parties do not appear to be heading for a consensus.