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News

Honda may shut down operations in Manesar due to protests

Honda may shut down operations in Manesar due to protests
Michelle Liew
March 3, 2020

The protests surround HMSI’s workers and them going on strike to demand Rs 1 lakh yearly compensation.

Honda

Honda Motorcycle and Scooter India (HMSI) | Photo credits: Livemint

Honda Motorcycle and Scooter India (HMSI) may potentially shut down its manufacturing facility in Manesar due to major protests by over 2,000 contractual workers. The protests took place starting last week when a certain amount of contractual workers, whose contracts had expired or were nearing the end of the contract, were forced to go on indefinite leave.

HMSI Manesar is India‘s second-largest two-wheeler manufacturer. It has an average monthly despatch of over 5 lakh two-wheelers from its plants.

An official statement by HMSI has said that 200 contractual members whose term had been completed have been relieved. It also stated that “necessary recruitment will be considered on the basis of future market requirements.”

“Based on demand fluctuations and production adjustment 200 contractual members whose term had been completed are relieved from their work. Necessary recruitment will be considered on the basis of future market requirements,” the statement reads.

According to the workers’ union, as many as 2,000 casual workers have already been asked to leave since August 2019. This was as quoted from Auto NDTV. Honda, on the other hand, states that only casual workers whose contracts have expired have been asked to go. The workers are demanding compensation of ₹ 1 lakh for every year each person who is asked to leave.
Lack of sales has hit the Indian market due to a crisis in the nations automobile sector. This has greatly affected casual workers in the manufacturing plants. However, retail sales have been optimistic throughout the festive season but not despatches from plants. Manufacturers have decreased production numbers due to the drop in demand.
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News
March 3, 2020
Michelle Liew

An avid fan of motorsports bringing you top-notch content from the two-wheeler world! Gear up for the latest updates and news with top speed delivery

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