The strike announced by employees of the Mahindra & Mahindra (M&M) Nashik plant has been called off. It was started from 6 pm on 5th March 2013, due to suspension of two workers for disputes over wage agreement. In addition, another strike was proposed to start from 11th March, but this has also been cancelled. In place of this, dialogue will take place for a mutual agreement between management and labour unions. By the end of next week, the revised wage structure would be finalised. It was a three year agreement, which had reportedly expired in February, but no revision was made since then. As per reports, losses that have taken place during this period are expected to be recovered soon.
As normality was restored, M&M stocks also rose up as a symbol of positive response. It was trading 1.8 per cent above normal at a current value of Rs. 900.75. Brokerage firm Angel Broking said in a statement, “We see this as a positive development for M&M and restoration of normal operations at the plant will enable the company to meet the market demand. Although M&M has lost 1,100 units in production because of the protests.”
With regards to the protests, all shifts of workers are expected to begin normally soon. Union president Shirish Bhavsar said that M&M management agreed to cancel the suspension of office bearers, Shinde and Sonawane, and would be revising the wages by 15th March. Reportedly, Shinde and Sonamane had instigated workers to stop working until fulfilment of demands.
Due to the protests, production of almost 650 vehicles has been affected since 5th March 2013. The Nashik facility, which is responsible for production of the Verito sedan, Xylo, Scorpio and Bolero was brought to a standstill as more than 3000 workers put tools down as the protests were carried out. However, M&M has issued a statement that it has a surplus inventory for three weeks. Due to this, there would not be any immediate impact on sales of its vehicles.
