Hero workers shift to slow gear, production could be hit by 30%

“Even as we are engaged in talks with the union of our Gurgaon plant to reach an amicable solution, they have resorted to tampering with the settings of production equipment, marginally compromising our output for the day. While we are indeed confident of making up this marginal shortfall, this kind of immature and irresponsible activity by the union does not reflect well on the conducive atmosphere in which we have been striving to reach a reasonable, sustainable and sensible settlement in a patient manner.”

The workers seem to have struck Hero where it hurts the most. Demand for its Pleasure and Maestro scooters is at an all-time high. Hero’s scooter sales in April-December FY13 have grown 32% year-on-year to 3.92 lakh units while bike sales dipped in the same period by 4% to 40 lakh.

The union member added that to slow production, workers decided to actually follow the official 'technical guidelines' that in fact take more time. Normally, they would bypass certain systems and norms in order to speed up output. The Gurgaon plant rolls out a two-wheeler every 16 seconds.

He added, “Our welfare measures and benefits have been the benchmark in the industry, so much so that some of our workers are paid better than the graduates from some of the reputed engineering institutes in the country. We will, therefore, continue to engage with our workers and the labour department in reaching a prudent and well-deliberated decision which will be in the best interest of all our workers

... contd.