Renault-Nissan Automotive India which runs a production plant in Oragadam, Tamil Nadu, has stated that it will be reducing the number of shifts at the plant from three to two and will reduce the number of employees.
The temporary employees will be disengaged from the jobs and the permanent workers will be redirected towards other operations in the plant. The company did not reveal how many temporary employees will be disengaged.
These developments will take place in the second week of December. In a statement the firm said that it commenced the third shift to cater the demand of Renault Kwid and Datsun redi-GO.
The statement read, "Demand for the cars remains strong but waiting times have been successfully brought down. In addition plant operations have been optimised to maximise production in two shifts."
The company stated it as a necessary change but promised a bright future as it is developing the production plant as a hub for exporting to other markets. Managing Director of RNAIPL, Colin MacDonald said, "In making this necessary change we are protecting the jobs of permanent, on-roll employees who will all be reassigned to other duties within the plant."
He added, "There is a bright future ahead as we develop RNAIPL into an even more significant passenger car manufacturing hub for the Africa, Middle East and India region, and beyond."
Earlier around March the company decided to introduce the third shift and in June the factory had signed a wage deal with the employees union to increase the salary of workers over the next three years.