Labour in two factories of a major auto component manufacturing firm have slowed down their manufacturing process which in turn could affect Hero MotoCorp.
Omax Autos, a leading supplier in spares for several automotive companies has slowed down work output as labour slowed down production, demanding job security and an increase in salary.
This company, based in Gurgaon, supplies over 90 percent of spares to Hero MotoCorp. Omax Autos is experiencing 30 to 40 percent decline with its output because its labour has deliberately slowed down the production process.
The company supplies Hero MotoCorp spares worth INR 1.1 crore a day. Now, it has dropped to INR 80 lakhs per day.
Suresh Sharma, AVP Operations and Plant Head for Omax Autos said that due to the labours deliberately slowing down the production process, companies like Hero MotoCorp are affected.
The company had been negotiating with their labour for Long Term Settlement which happens every three years. The workers were due on the first of April, 2014.
The labours want the settlement to happen like how it happened previously, but because the company had undergone a loss the previous year, they are unable to do so.
Omax Autos, which was established in 1985, specialises in sheet metal components, tubular components and machined components. Other than Hero MotoCorp, the company also supplies to other auto manufacturers like Yamaha, Piaggio and Honda Motorcycle & Scooter India.
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