Despite stiff opposition from the Maharashtra government as well as agriculture minister Sharad Pawar, a defiant Bajaj Auto on Monday refused to resume vehicle production at its Akurdi plant, near Pune. ?We have no plans to re-start vehicle manufacturing at Akurdi,? Bajaj Auto chairman Rahul Bajaj told FE.
?However, we also clarify that Bajaj Auto has neither used?nor does it propose to use?the Akurdi land for any of the purposes being speculated like (an) IT park or real estate. It will always be a part of the core activity of Bajaj Auto and will be used for component manufacturing, research & development and other corporate functions,? he added.
Bajaj said the company was ready to pay workers affected by the shutdown ?until they retire, if they do not accept a voluntary retirement scheme we have asked them to consider?. They will be given wages for six days a week, Bajaj said.
Managing director Rajiv Bajaj said the Akurdi plant ?has not and is not? being shut down. ?All 1,310 staff, as also approximately 847 workmen, are reporting to work six days a week as per their normal routine… The management reiterates that it has no grievance with its workmen and, in fact, acknowledges their high standards of quality, productivity, and discipline,? he said.
Bajaj said the management would continue to engage the labour union at the plant in a dialogue to ensure that all legitimate interests of its workmen are taken care of. Citing the high cost of production, the company had shut production at the Akurdi plant (where it manufactured the Crystal scooterette) late last month and moved all work to Waluj, near Aurangabad.
However, unions at the company?s oldest plant vehemently opposed the move, prompting the company to work out new packages. Maharashtra chief minister Vilasrao Deshmukh has already asked Bajaj to resume production at the plant. Deshmukh said that octroi, one of the reasons cited by the company to halt production at the plant, would be abolished soon.
Company officials held a meeting over the weekend with Pawar (Akurdi falls in his Baramati Lok Sabha constituency), Maharashtra labour minister Ganesh Naik, representatives of the Bhartiya Kamgar Sena, Shiv Sena workers? wing Vishwa Kalyan Kamgar Sanghatana, and labour ministry officials.