Chennai: Hyundai Motor India Ltd is facing a possible loss in production at its plant at Sriperumbudur near Chennai because of a strike called by workers of its logistics unit seeking reinstatement of suspended employees and a pay raise.
However, the company denied that it faced any loss in production.
The car maker engages contract workers through agencies such as TVS Logistics Services Ltd for handling warehousing, materials, canteen operations, security services and housekeeping.
About 1,110 contract workers are engaged in production-related activities such as material handling and warehousing.
The spokesperson of TVS Logistics said about 300 employees went on strike, describing it as “illegal and totally unjustified”. The dismissed employees’ case is pending with the assistant commissioner of labour.
Six employees of TVS Logistics were suspended three weeks ago because they had been boycotting lunch and supposedly setting a bad example, according to R. Sridhar, general secretary, Hyundai Motor India Employees Union (HMIEU).
Members of HMIEU, which Hyundai has not recognized as a union, have decided to support the contract workers by not cooperating in production, Sridhar said.
“The TVS Logistics employees are staging a protest in front of the assistant commissioner of labour’s office, while the HMIEU employees are staging non-cooperation from inside the factory,” he said.
Hyundai denied that permanent workers were involved in the agitation. Also, a few workers Mint spoke to said production was not disrupted.
Mint had reported on Thursday that HMIEU has its set of demands with respect to wages and benefits and threatened to go on strike if a final wage settlement was reached without their demands being addressed by the management.
The company has two manufacturing plants in Sriperumbudur, with a capacity for producing 630,000 cars a year. Sridhar said production in plant one was at 10% of capacity, while plant two was working at 65-70% of capacity.
In a document filed with the Madras high court in August, Hyundai had said disruption in production could result in losses of Rs.63 crore a day. The firm produces 2,100 cars a day and has annual sales of Rs.20,000 crore.
Sridhar said that if the management didn’t agree to the demands of the TVS Logistics workers, all HMIEU permanent workers will go on strike from Tuesday.