analysis on bajaj strike

1. Analysis on Bajaj auto strike
Chakan plant
Prepared by:
Piyush Ravi
Reetika Yashwant
Vishant
Monika
Jijo

2. Worker’s go on strike
25th june – 13th aug 2013

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. 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. 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. 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. 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. 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. 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. 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. 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.