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Hero Honda's Gurgaon unit strike enters 5th day

Stalemate continued at Hero Honda's Gurgaon plant for the fifth day with formal talks failing to take off.

india Updated: Apr 14, 2006 15:23 IST

Stalemate continued at Hero Honda's Gurgaon plant for the fifth day on Friday with formal talks between the management and contract workers failing to take off even as initial estimates pegged the production losses to the company at around Rs 100 crore.

A senior company official said that the workers failed to turn up, for the second time in as many days at the state government office (mini-secretariat) in Gurgaon for reconciliation talks.

"We waited for them but in vain," he said, adding that efforts were being made to resume the dialogue as early as possible.

Meanwhile, with the production being off for the fifth day, the production losses for Hero Honda were estimated to have mounted to around Rs 100 crore. Though there was no official validation from the company, lack of production at the plant -- which has an average daily output of around 5,800 vehicles -- means mounting losses with each passing day.

The company, however, is taking all precautions to avert any untoward situation and despite having around 1,600 permanent workers at the plant, is refusing to start production as the 2,000-odd striking contractual workers, camping at the plant, could rise in protest.

Hero Honda, however, claims that the loss in production will not impact sales in the long-term as it had enough inventory levels and also had vehicles in transit. Moreover, its second plant at Dharuhera was functioning normally, and officials are confident to make up for the production loss once the stir at Gurgaon plant ends.

Among other benefits, the contractual workers are demanding regularisation of services and higher salaries.

First Published: Apr 14, 2006 15:23 IST