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Maruti Suzuki tumbles on bourses over labour dispute

Maruti Suzuki tumbles on bourses over labour dispute
PTI
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First Published: Tue, Aug 30 2011. 10 48 AM IST
Updated: Tue, Aug 30 2011. 10 48 AM IST
Mumbai: Shares of Maruti Suzuki plunged in early trade on the bourses on Tuesday as production at its Manesar plant got disrupted after a labour dispute entered its second day.
Production at Maruti Suzuki India’s Manesar plant has been affected, as the company is preventing workers from entering the factory without signing a ‘good conduct´ bond following alleged “sabotage”, resulting in quality issues that arose last week.
Shares of the company opened on a weak note on the Bombay Stock Exchange and then lost further ground and slipped to a low of Rs 1,063.25, down 1.55% from its previous closing price.
On the National Stock Exchange, the stock fell to a low of Rs 1,064, down 1.42% from its last closing price, after opening at Rs 1,070.10.
As per estimates, the firm has suffered a production loss of about 1,200 units, valued at around Rs 60 crore.
At 9:46am, hours, the stock was trading at Rs 1,066.10, down 1.29% on the BSE, and at Rs 1,066.20, down 1.22% on the NSE.
Marketmen said the fall in the counter was largely due to the labour dispute at the company’s Manesar plant.
Meanwhile, the broader market was trading in the positive zone, with gains of over 166 points at 16,582.67.
Alleging sabotage by some workers, the company management decided to enforce a ‘Good Conduct Bond´ for workers, which seeks an assurance from the workers that they will not go slow on their work, sabotage production or indulge in activities that would hamper normal production at the plant.
The workers, however, said the management was taking ‘revenge´ for their 13-day strike in June demanding recognition of a new union -- the Maruti Suzuki Employees Union (MSEU) -- at the plant located in Haryana.
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First Published: Tue, Aug 30 2011. 10 48 AM IST
More Topics: Stocks | Maruti Suzuki | Auto | Manesar Plant | Labour |