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Analysis on bajaj auto strike chakkan plant 2013


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analysis on bajaj strike

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Analysis on bajaj auto strike chakkan plant 2013

  1. 1. Analysis on Bajaj auto strike Chakan plant Prepared by: Piyush Ravi Reetika Yashwant Vishant Monika Jijo
  2. 2. Worker’s go on strike 25th june – 13th aug 2013
  3. 3. Reasons for strike The Chakan plant employs 1,486 workers, of which 900 are permanent, 364 are trainees, and the rest are part of the “learn and earn” employment-promotion programme run by the state employment exchange. The strike began on 25 June. The Vishwa Kalyan Kamgar Sanghatana (VKKS) labour union wants Bajaj auto to allot 500 shares each to all workers at a price of Rs.1 per share, besides a wage hike, better working conditions and the reinstatement of 22 workers suspended by the management on disciplinary grounds.
  4. 4. Support received by workers The worker’s union at bajaj chakan received some support from local politicians, such as few shiv sena leaders and activists, such as Medha patkar its key demand of shares for workers,something not seen in any Indian automobile company, didn’t strike a chord with national and state level politicans.
  5. 5. News in Business Standard Bajaj Auto Ltd (BAL) today said workmen at its Chakan plant have "stopped coming" to work thereby affecting production following the management's refusal to allot them shares at discounted price.The company said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift of June 28, 2013. "The workmen have, however, stopped coming to the Chakan plant from June 25, 2013, itself, without assigning any reason for this stoppage,"
  6. 6. News in Economic Times The Company has received a notice from the workmen's union of its Chakan plant viz., Vishwa Kalyan Kamgar Sanghatana stating that they propose to call for a stoppage of work by all the workmen employed in Chakan plant from the morning shift of June 28, 2013. However, the workmen have stopped coming to the Chakan plant from June 25, 2013. The management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share.
  7. 7. Loss suffered by the company Bajaj Auto Ltd, India’s second largest motorcycle maker, saw a 8% drop in August sales, including exports, from a year earlier. The company sold 278,583 units in the month compared with 304,352 sold in the year earlier. Sales of commercial vehicles declined 17% to 33,605 units. A strike at the company’s Chakan factory in Maharashtra affected production. The 49-day work stoppage was lifted on 14 August. Bajaj officials on 26 July said the company lost production of 25,000 units.
  8. 8. The Chakan plant employs 1,486 people and produces the Pulsar, Discover and KTM brands. Bajaj had been producing some of its high-volume brands at its Waluj factory in Aurangabad. On 26 July, Bajaj announced a production loss of 25,000 bikes. The management added it did not suffer any loss in the last few weeks.
  9. 9. Deadline set by Bajaj to resolve strike at Chakan plant Bajaj auto ltd. has served an ultimatum to the striking employees at its Chakan plant in Pune to return to work in a week, failing which the two-wheeler maker will temporarily shift part of the production to its other factories. “We are losing patience now,”Rajiv Bajaj, managing director Bajaj Auto, told reporters at the company’s headquarters in Akurdi near Pune. “I cannot stake sales (motorcycle sales) from the plant in the second half as well.”
  10. 10. If the workers refuse to get back to work unconditionally, Bajaj Auto will have no option but to shift half of its production at the Chakan plant to Waluj in Aurangabad in a“semi-permanent way” and might have to eventually issue a voluntary retirement scheme (VRS) to half the workforce, Rajiv Bajaj said, adding he has given his team time till next Monday to resolve the crisis. About half of the employees at the Chakan plant has been coming to work, the company claimed.
  11. 11. Result after deadline A strike at Bajaj Auto Ltd’s Chakan factory ended Tuesday with the union “unconditionally” calling off the stir after 49 days. The 900 or so workers who have been agitating since 25 June were set to return to the factory on 14th aug Wednesday morning and production was subsequently expected to return to normal.