Mahindra & Mahindra Limited, the country’s leading utility vehicle manufacturer, has revealed that production operations at its Igatpuri based facility have been stopped. The company has confirmed that a tool down strike by its labour force to be the prime reason behind the suspension of operations at its Igatpuri unit.
In a report filed by Mahindra & Mahindra to the Bombay Stock Exchange (BSE), the company said, “There has been a stoppage of work at the company's Igatpuri plant due to a tool down strike by the Union.” The Igatpuri plant’s workers embarked on the tool down strike following the suspension of two employees on the basis of disciplinary grounds. As per reports, one of the suspended workmen happened to be a union office bearer. The report also said, “The company is in constant dialogue with the union for an early solution of the issue. The company has currently sufficient stock of engines for production of its vehicles.”
Mahindra & Mahindra’s Igatpuri facility is in the state of Maharashtra and takes care of the company’s manufacturing operations of automotive engines. All engines powering Mahindra models are made in Igatpuri. As per sources, Mahindra is in continuous dialogue with the disgruntled union of its Igatpuri engine production unit. However, the company has sufficient stock of engines for use in its vehicles at the moment and therefore, talks for ensuring peaceful settlement are in progress.
Reportedly, the strike at Igatpuri unit is the second instance of labour agitation faced by Mahindra & Mahindra Limited this year. The company’s Nashik facility that assembles Verito and Xylo among other products also went through a complete shut down in operations, for a few days in March 2013. Sources have suggested that the upset workers are negotiating with the Mahindra & Mahindra management, asking hike in wages, for which 11 meetings have been held till date.