Honda Motorcycle and Scooter India (HMSI) confirmed that production at the factory in Manesar has been suspended with effect from 11th November 2019 as talks with workers fail.
According to Hindustan Times, More than 2,000 contractual workers have participated in the strike against the retrenchment of over 200 contract workers at the factory. The workers’ union said. Workers have demanded that either they be recalled or be paid a compensation of Rs 1 lakh per worker for each year of service.
The slowdown in retail demand had forced Honda, the second-largest two-wheeler company in India, to cut back on production and lay off surplus manpower.
Another round of talks was held on Monday between the management and the union, however, no solution could be reached, said the union president Suresh Kumar Gaur. “A representative from the management didn’t make it to the meeting. We expect that a solution can be reached on Tuesday,” he said, adding that the strike will continue indefinitely.
An HMSI spokesperson, on the condition of anonymity, confirmed that all the three assembly lines – two for motorcycles and one for scooters– of the plant would remain shut until further notice or till the matter settles.
Honda’s Manesar plant employed around 1,900 permanent workers and 2,500 contractual workers until recently.
In a press statement last week, Honda had said the workers, whose term had completed, were relieved due to demand fluctuations and production adjustment. In August, Honda had laid off about 700 contract workers because of a production cut, as per figures released by the company. Company officials said then the industry was facing a demand slump and the job losses were a consequence of the downturn.
HMSI sales had fallen marginally to 517,808 units in October, down from 521,170 units a year earlier. Demand for two-wheelers and cars has declined as consumers spend less because of a downturn in economic growth, which eased to an over six-year low of 5% in the quarter ended June.
The Manesar plant, set up in 1999, is HMSI’s oldest manufacturing facility in the country with an installed capacity of 1.65 million units a year.
