Strike hits production at M&M Nashik plant
07 Mar 2013
A workers' strike at automobile and farm equipment manufacturer Mahindra & Mahindra's (M&M) Nashik plant over wage hikes has hit production.
''The company has had a production loss of around 500 vehicles till date, which currently will have no immediate impact on sales as it has three weeks stock in the pipeline,'' M&M said in a statement.
M&M makes utility vehicles Xylo, Scorpio, Bolero and sedan Verito from the unit.
''Mahindra and Mahindra believes in fair treatment and will keep its dialogue ongoing with the union representatives for stoppage of the current tool down and a planned strike so as to reach a mutual agreement,'' it said, adding, the strike, which started on Tuesday (March 5) at 6:00 p.m., is still on.
The workers at the Nashik started the agitation for higher wages after the three-year wage pact lapsed earlier in February this year.
Earlier on 6 May 2011, workers at M&M's Nashik unit went on a day-long tools-down strike, demanding higher wages. The workers also went on a fortnight-long strike in May 2009, protesting against the suspension of a union leader.
This the second instance of labour unrest this year, the other one being at two-wheeler manufacturer Hero MotoCorp's Gurgaon unit.
The company's shares also fell by 2.16 per cent to Rs 878.35 on Wednesday, after the company informed the exchanges that received a notice of strike from the employees union.