Royal Enfield slows down: Production loss of 25,000 motorcycles; workers’ strike hits hard

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Chennai | Updated: November 1, 2018 9:30:25 AM

The workers, numbering over 700, have been on strike for more than a month now, demanding formation of their own union

Royal Enfield, the iconic bike arm of Eicher Motors, has on Wednesday said that it has lost a production of 25,000 motorcycles for the months of September and October due to ongoing workers’ strike at its plant in Oragadam near Chennai.

Royal Enfield, the iconic bike arm of Eicher Motors, has on Wednesday said that it has lost a production of 25,000 motorcycles for the months of September and October due to ongoing workers’ strike at its plant in Oragadam near Chennai.

The workers, numbering over 700, have been on strike for more than a month now, demanding formation/recognition of their own union as well to settle wage/bonus disputes. Despite three to four times of reconciliation meetings in front of the assistant labour commissioner in Chennai for over a month, both the workers union and the company’s management could not arrive at an amicable solution.

In a communication to the stock exchanges, the company said that Royal Enfield’s manufacturing facility at Oragadam, near Chennai, remained operational through the month of October 2018, even though a part of the workforce continued to stay away from work since September 24, 2018.

A majority of our workforce continues to report to work at the Oragadam plant and are actively engaged in operations. Our manufacturing facility at Vallam Vadagal continues to operate and deliver to its full capacity. We are in dialogue with our plant based forums to amicably resolve all concerns and continue to remain engaged with relevant authorities. We are deeply committed to maintaining and furthering cordial relations with our workforce. Due to the strike, the loss of production for the month of September and October 2018, is 25,000 motorcycles, the company said in a statement.

The company had earlier got Madras High Court order, made the workers to strike 200 metre outside the factory premises and refused to recognise the formation of workers’ union, who are believed to have affiliation with trade unions like CITU.

Earlier workers union representative alleged that despite the assistant labour commissioner suggestion to allow the workers to resume their duty, the management was adamant in keeping mobile phones away when in duty and even sought the workers’ declaration in writing for not indulge in such strike/protest activities.

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