After workers at the Honda Motorcycle and Scooter India’s Tapukara plant in Alwar, Rajasthan went on strike on February 16, the company has taken a major hit on production and has downsized its regular production target to 3,000 units a day from 4,600 units earlier. However, its actual production is even lower at 2,400 units a day.
“Production has scaled up to reach 80% of normal daily revised production plan of 3,000 units,” the company said in response to queries from FE, adding that production is increasing each day as more workers are resuming duties and damaged machinery is getting repaired. Striking workers said that the daily output before the strike was at 4,600 units per day. The company is expecting the production to normalise in 8-10 days.
The workers who have been on strike claim that the absence of over 300 permanent workers involved in daily production activities, has impacted the dispatches.
The company did not give details of dispatches from the plant after the strike. HMSI reported a 2% growth in its total sales in February. The company said that it has issued suspension letters pending inquiry to 100 workers and 130 of the 550 permanent workers have reported back to work.
Further, around 60 workers have been issued a warning letter to resume the duty. In a statement issued earlier, the company had termed the strike “illegal.”
The trouble began when the company suspended five workers and terminated four others for indiscipline in early February. The workers claimed that the suspension and termination was a fallout of their demand for recognition of their union by the company. The company has termed the strike to be illegal.
HMSI, the second-largest two-wheeler player with a market share of 26%, has three more manufacturing plants, one at Manesar in Haryana, one near Bengaluru and a new scooter-only plant has been recently inaugurated in Gujarat.
The Tapukara plant of the company rolls out popular models like the Activa and Shine. The new model Navi, which has been unveiled by the company at the Auto Expo Motor Show 2016 but has not been commercially launched yet, is also expected to be manufactured at the same plant.