Hero Workers Refuse Company Offer Again

Hero Splendor
India's leading two wheeler manufacturer continues to be under labour pressure after union workers did not accept the management's offer of pay hike. The workers represented by the Hero MotoCorp Workers union had demanded a pay hike up to Rs.18,000 over the next three years while the management has offered a hike of Rs.7,500.

Hero MotoCorp had started negotiations with the workers on wages as early as August 2012. Both sides have refused to budge and there was no sign of a settlement. The workers initially started protesting by refusing to take refreshments offered by the company. They had stated that they would not go on a strike.

When the management and the workers union met later, the stalemate continued. The workers decided to go slow on production one production line to protest the management's refusal to accept their demands. The production slowdown at Hero MotoCorp's Gurgaon plant which started last week has lead to the production loss of 1,000 scooters according to reports.

The Haryana state labour department has now joined the talks. Meetings between the management, union workers and officials from the labour department have been held until yesterday with no visible change in stands from either parties. Reports say talks will continue until an amicable solution is found.

The dispute between Hero MotoCorp and its workers reminds the long strikes at Maruti Suzuki's Manesar plant, which is also located in the state of Haryana. The strikes at Maruti Suzuki's plant took a violent turn ad the state government is working to prevent a recurrence of such events at Hero MotoCorp.

So far the production slowdown has affected only scooters. If the situation escalates in to a bigger issue, motorcycle production could also be affected.

Article Published On: Thursday, January 31, 2013, 10:56 [IST]
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