Date:24/08/2004 URL: http://www.thehindubusinessline.com/2004/08/24/stories/2004082402040200.htm

Back Ashok Leyland Hosur plant staff go on strike

Our Bureau

Chennai , Aug. 23

ASHOK Leyland Ltd employees at Hosur plant-I struck work this morning demanding an early settlement over wage negotiations and productivity issues.

The company has informed the stock exchanges that the workmen at one of its units at Hosur have gone on a strike over the triennial wage settlement. The management is hoping to increase productivity to enhance competitiveness. The strike will not affect the company's operations in the short term, it said in its communication to the exchanges.

The company said, "With sufficient stock of aggregate to support the remaining manufacturing locations, all of them with model flexibility in assembly, there will be no significant impact in the company's operations, in the short-term."

According to Ashok Leyland officials, the employees are seeking some requirements from the management, in terms of productivity increase and certain practices such as lean and cellular manufacturing. At present, workers at the Hosur unit earned between Rs 11,675 and Rs 13,263 a month, depending on the seniority.

The officials said Ashok Leyland manufactured engines at the Hosur unit and at Ennore. The company had the flexibility in its manufacturing units allowing it to make any product at any of the plants.

According to union leaders, the previous wage settlement ended in December 2003, and discussions have been on for over nine months. While the wage increase itself is negotiable, the discussions have hit a road block on productivity issues and employee deployment. Over 2,355 permanent workers are employed at this unit.

The plant produces over 175 Hino engines a day and 36 vehicles including multi-axle vehicles and heavy goods vehicles. This was higher than that agreed upon in the previous agreement, which provided for production of 90 engines and 36 vehicles a day, they said.

According to union sources, the management wants to nearly double engine production to about 300 without increasing the total number of employees. It plans to redeploy some of the workers in various service areas to the production jobs and increase contract jobs. Since there had been no progress in discussions the workers struck work this morning and are on an indefinite strike, they said.

The employees' concern is that if the order levels drop, then the jobs of those redeployed will be rendered surplus, according to the union sources.