Honda and auto component makers are seriously being affected by the ongoing labour unrest in Gurgaon. While Honda has threatened to pull out of its 2-wheeler plant if the matter is not quickly resolved, other auto component makers are also facing severe labour problems.
There have been recurring labour problems at Honda’s two-wheeler plant in Haryana where the company has invested nearly Rs. 1000 crores. The recent wage settlement of the company with the workers has seriously hampered company’s production pipeline and Honda has been forced to ask dealers to stop taking any more bookings. At the Honda plant, production is down by more than 50% and the labour trouble has meant that a new line for vehicles, the third one since production began, has failed to take off.
"The recurring labour issues in the Gurgaon and Manesar belt are indeed a concern for all industry. The ongoing workers' problem at some of our suppliers' plants have impacted our operations," a Hero Honda spokesperson said.
There have also been recent strikes at the Rico Industries plant, Sunbeam and other auto component makers. This has seriously affected supplies to auto manufacturers like Maruti and Hero Honda.
