Strike hits motorcycle production at Bajaj Auto's Chakan plant

Two-wheeler maker Bajaj Auto has recommenced production at its Chakan plant in Maharashtra today, after workers stopped work on Tuesday and served notice of strike beginning 28 June. But the company said production in the June-July months could fall by 1,000 to 2,000 units per day due to the proposed strike.

Bajaj Auto expects to produce 50,000 motorcycles each in June and July at the Chakan plant against normal production of 75,000 units a month,CNBC-TV18 quoted Bajaj Auto's managing drector Rajiv Bajaj as saying.

Chakan accounts for close to 25 per cent of Bajaj Auto 's two-wheeler capacity. The plant, which has a capacity of 4,000 vehicles a day, however, has been operating at 3,000 vehicles per day capacity before the strike.

The plant employs 1,500 workers, of which around 100-200 employees turned up for work today. Bajaj, however, said  he was not unduly concerned about the Chakan plant strike.

Workmen at the Chakan plant stopped attending work following the management's refusal to allot them shares at discounted price, "an absurd demand," said Bajaj.

The management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re1 per share.

The strike that started with the demand ESOPs at Re1 a share to all workers has now turned to a full-blown wage demand. He said the company had already signed a wage agreement which is valid till 2019.

He added the company is looking to implement safety measures since the workers had turned violent on Tuesday.