Bajaj To Move Out Of Chakan If Labour Issue’s Not Resolved In A Week

The worker strike at Bajaj's Chakan plant that began on June 25 has still not been resolved. While a few workers have reported back to work, the majority are still out, affecting production at the Pune facility. To compensate, Bajaj was forced to shift part of the production to its other facilities. But with the issue showing no signs of getting resolved Rajiv Bajaj, Managing Director, Bajaj Auto has issued an ultimatum of sorts, saying the company will permanently move out of Chakan if the labour issue is not resolved in a week's time.

"Unless the issue is resolved within a week, we will be forced to move at least 50 per cent of production and production capacity to the Aurangabad and Pant Nagar plants", Rajiv Bajaj stated. If the issue is not resolved by August 12 Bajaj said the temporary arrangements currently in place would become permanent. "We will then have to shift some equipment there and boost manpower at the Aurangabad and Pantnagar plants," he added.

Post the strike, Bajaj has lost the second largest motorcycles manufacturer crown to Honda, which has exceeded the former's export bike production capacity. Bajaj could still regain its former production numbers, but needs to get back to its pre-strike numbers before problem at hand leaves a permanent mark.

Rajiv Bajaj, however, still maintains the company has not incurred any loss as it has handled the situation by shifting production to its other plants. But instead, the workers who are losing their pay are ultimately the ones facing the consequences. He urged workers to come back and resume work since there was no reason not to.