plagued by labour unrest, auto majors in INDIA May have cause for worry, yet doubts about the country's capability to be a global hub are unfounded, reports Pawan Chabra
For the global automotive industry majors, India has for a long
time been a favoured driveway. With companies like Hyundai, Toyota and even Ford choosing this country as their manufacturing hub, the sector is enjoying one of its best growth phases ever. However, one cannot deny that this is a labour intensive industry and it has hence been buffeted by recurring incidents of labour unrest in the country. Industry watchers claim that India (which is currently the second largest two-wheeler market in the world after China) is well on course to becoming the seventh largest passenger car market worldwide (currently the eleventh largest) by 2016. However, the current labour problems that are looming large over companies like Rico, Honda Motorcycle and Scooters India Limited (HMSI) and Sunbeam in the Gurgaon-Manesar belt have once again ignited the debate on whether India can indeed grow into a major hub for automotives in such a scenario. The billion-dollar quation to be asked is: will such incidents slow down the growth of the Indian automotive industry in the long run?
The problems started with the strike at HMSI’s plant when the majority of the 5,500 workforce decided to launch a 'go- slow' in August. As a result of the action, production at the HMSI plant dropped by over 50%. HMSI filed a petition in the court threatening to take its operations out of India. In fact, the company has stopped taking orders for some of its models with the back-order touching 1.4 lakh units leading to a production loss of over Rs 300 crore for about 75,000 units of two-wheelers. Similarly, Rico, which supplies to giants like Maruti Suzuki and Hero Honda (market leaders in their respective segments) has been facing severe labour problems for the past one month. At present almost 95% of its 3,500 workers are on strike.
The protest became dangerous after a worker, Ajit Kumar Yadav, 26, died when police fired on agitating employees of the auto component manufacturer. In fact, the auto belt in the region of Gurgaon-Manesar was rocked by the industrial unrest that had been simmering for the past few months. About 8,000 workers walked off their jobs as the Communist Party of India-affiliated trade union, All India Trade Union Congress (AITUC) mobilised a protest against the death of the worker. The picture gets clearer when one looks at the issues from the workers’ point of view. “We are fighting here for our rights and the management has no right to exploit workers,” asserts Chander Jeet Singh, a member of the Rico’s employees union. “After all, it is also in our interest to keep our jobs. We didn’t do this to threaten the management,” said another worker protesting against the company.
For the global automotive industry majors, India has for a long
time been a favoured driveway. With companies like Hyundai, Toyota and even Ford choosing this country as their manufacturing hub, the sector is enjoying one of its best growth phases ever. However, one cannot deny that this is a labour intensive industry and it has hence been buffeted by recurring incidents of labour unrest in the country. Industry watchers claim that India (which is currently the second largest two-wheeler market in the world after China) is well on course to becoming the seventh largest passenger car market worldwide (currently the eleventh largest) by 2016. However, the current labour problems that are looming large over companies like Rico, Honda Motorcycle and Scooters India Limited (HMSI) and Sunbeam in the Gurgaon-Manesar belt have once again ignited the debate on whether India can indeed grow into a major hub for automotives in such a scenario. The billion-dollar quation to be asked is: will such incidents slow down the growth of the Indian automotive industry in the long run?The problems started with the strike at HMSI’s plant when the majority of the 5,500 workforce decided to launch a 'go- slow' in August. As a result of the action, production at the HMSI plant dropped by over 50%. HMSI filed a petition in the court threatening to take its operations out of India. In fact, the company has stopped taking orders for some of its models with the back-order touching 1.4 lakh units leading to a production loss of over Rs 300 crore for about 75,000 units of two-wheelers. Similarly, Rico, which supplies to giants like Maruti Suzuki and Hero Honda (market leaders in their respective segments) has been facing severe labour problems for the past one month. At present almost 95% of its 3,500 workers are on strike.
The protest became dangerous after a worker, Ajit Kumar Yadav, 26, died when police fired on agitating employees of the auto component manufacturer. In fact, the auto belt in the region of Gurgaon-Manesar was rocked by the industrial unrest that had been simmering for the past few months. About 8,000 workers walked off their jobs as the Communist Party of India-affiliated trade union, All India Trade Union Congress (AITUC) mobilised a protest against the death of the worker. The picture gets clearer when one looks at the issues from the workers’ point of view. “We are fighting here for our rights and the management has no right to exploit workers,” asserts Chander Jeet Singh, a member of the Rico’s employees union. “After all, it is also in our interest to keep our jobs. We didn’t do this to threaten the management,” said another worker protesting against the company.
into a war against Tamil civilians, many of us were demanding that the government of Tamil Nadu should impress upon the government of India to immediately mobilise international opinion and work out a mechanism, acceptable to both Colombo and the Liberation Tigers of Tamil Eelam (LTTE), to rescue Tamil civilians from the war zones and escort them to “safe havens” manned by UN organisations. During this worst period in Tamil history, India did not come to the rescue of the Tamils trapped and subjected to savage bombing by the Sri Lankan Air Force. On the question of the rehabilitation of the Internally Displaced People, herded like cattle in the Manik Farm, without proper food, medicine and water and denied the basic right of freedom of movement in their own country, our plea for speedy rehabilitation has fallen on deaf ears. Tamils in Tamil Nadu are helpless and we feel let down that the self-proclaimed champions of overseas Tamils have developed feet of clay.
one of my books: “So often Indira Gandhi is depicted as solemn and serious. Seldom is it mentioned that this graceful, sparkling, engaging human being was a caring humanist, a voracious reader, with wide-ranging non-political interest, that she was endowed with charm, elegance, good taste, that she enjoyed the company of artists, authors, poets, painters and the talented, that she had a sense of humour…” When she was assassinated on October 31, 1984, the spring went out of my life.
winning elections. The party, that defeated the mighty Congress in two Assembly elections, is suffering from bitter internecine conflict. The results of the vicious infighting are beginning to manifest. The AGP seems on its deathbed, having lost 10 straight elections at various levels, a party with which no one wants to stay anymore. The crutch of the Bharatiya Janata Party (BJP), that, it had hoped will help it to stay on its feet lies broken, with the national party having reaped more benefits from the desperate marriage.
many confused about what Islam really says about it. Malaysia’s National Fatwa Council and Indonesian Ulema Council’s edicts on the ground that yoga will erode their faith in the religion reflect a complete ignorance about the discipline of yoga.