Labour Strike In Auto Industry

By By: Vicky.in

Published: Monday, December 27, 2010, 12:14 [IST]

In a bid to meet the uncontrolled labor strike prevailing in the auto industries, a corporate governance measure is sought by, said a consultancy form Mazars. The firm"s Executive Director said the need of the hour is to implement any such move to contain the ongoing tussle between the labors and the management of auto sectors. The need is thrust upon as a result of several labor strikes that arose this year which resulted with ultimate loss to the manufacturers. The companies which faced such labour issue problems include Hyundai Motor India, Honda Motorcycle and Scooters India, General Motors.

Hyundai suffered due to the labor strike which went on for three days six months ago until the government intervened to make an amicable solution. The labour strike resulted with a loss in production by 2000 units a day amounting to R65 crores. GM had faced strike issue on wages while Bosch unit closed its production for five days due to the manhandling of the plant managers and wage revision issues.

The component suppliers such as Exide battery and Apollo Tyres too struck out of the labor issue. Due to the strike in Apollo Tyre unit in Kerala for two months the company had to face a loss of Rs600 crore. Exide"s Haryana unit faced a crisis from its labors which affected the regular deal with Hero Honda and HMSI.

The official suggested to devise a corporate governance to check such unrest particularly in unlisted companies. He also preferred a transparent attitude from the auto companies, like upgradation of labor skills by way of training. The companies shall be able to meet the existing demands from the developing technology, he added.

Article Published On: Monday, December 27, 2010, 11:50 [IST]

Read more on: #automobile #hyundai motors #indian car market

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