Mahindra workers strike, production not hit

Workers at Mahindra & Mahindra’s Nasik plant in Maharashtra went on a flash tool down strike from Sunday in support of the union’s demands related to wages and service conditions for new grade workmen. This is in continuance of the hunger protest which was been initiated on March 1. The company has however come out with a statement saying that production is now back to normal in all shops, and the opposition which effectively works out to a single-day strike will not hit sales volumes.

The unannounced strike was effected on Sunday, March 6 by the workmen at the Nashik plant to press for their demands of a wage increase for a portion of the workers. The company however is terming the strike as illegal and in breach of sections of the MRTU and PULP Act, 1971.

The strike comes after a long-term settlement that was reached between the company management and the worker’s union in 2009 which governs the wages, productivity and service conditions. The next wage revision as per the agreement is due in February 2013. Despite these conditions, the company had offered to increase the ad hoc allowance of all entry-level workmen at the plant to avoid trouble.

“The Management is confident that the loss of production will be made good soon. The Company does not expect any material impact in the short term on sales volume. Production in all shops of the plant is back to normal from today”, the statement from Mahindra & Mahindra said. M&M has big plans for the current year which include the launch of some interesting new models.