HMSI order backlog reaches 1.4 lakh units on labour issues

Written by fe Bureaus | New Delhi | Updated: Oct 28 2009, 05:36am hrs
With a backlog of 1.4 lakh units due to several months of lower production at its plant, Honda Motorcycle and Scooter India (HMSI) is hopeful of resolving the issue in few days as well as clearing the backlog with its third assembly line going operational from Tuesday.

"We have started operating the new assembly line at our plant today. This has a daily production capacity of 300-400 units and we hope to scale it up to 1,000 units a day within few weeks," Shinji Aoyama, president & CEO, HMSI said, adding that the company is hopeful of achieving full normalcy in production within next two-three days.

HMSI has a daily production capacity of about 4,400 units at its Manesar plant and the company is currently utilising half of it after a majority of the 5,500 workers at the company's plant resorted to go-slow tactics since August, leading to a production loss of over Rs 300 crore for about 75,000 units of two-wheelers.

Meanwhile, Honda Motorcycle and Scooter India, on Tuesday, launched an advanced version of its scooter Aviator priced at Rs 42,160-47,160 (ex-showroom, Delhi). The company is planning to sell 1.1 lakh units of the new 110cc scooter in the current fiscal.

After the 2005 violent strike at HMSI's Gurgaon plant, the management and workers union had signed a long-term agreement in 2006, which expired this July. The two parties are re-negotiating the terms and conditions to cover issues such as higher wages and better facilities.

While the workers union had denied they were on strike, the management had blamed them for disrupting work. HMSI has approached the Punjab and Haryana High Court, seeking to direct the workers' union not to disrupt production and prosecute those who have violated the law. The matter is due for hearing on October 28.