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Automobile Hub Gurgaon Faces Strike

By Motortrend India Staff   |   20 October,2009

A major trade union has called for a strike at Gurgaon. Hence, the production at one of the country's biggest automobile hubs has been hit badly.

The strike call, given by All India Trade Union Congress (AITUC), comes in the wake of the death of an agitating worker in a clash at the plant of component maker Rico Auto on Sunday in which many other workers were also injured. Suresh Gaur, the Gurgaon district president of AITUC, told that Tuesday's agitation was against the "virtual police inaction" despite the death of the worker at Rico's Gurgaon factory.

"There have been no major arrests as yet and there is hardly any concrete action from the police to bring to book the people behind the incident. We want action, as well as freedom to carry trade union activities that is guaranteed to us by the labour laws of the country," Gaur said.

Gaur said more than 60 companies operating in the area would be impacted by the protest call and claimed that as many as 1 lakh workers would be part of the stir. These include workers from scooter major Honda Motorcycle and Scooter India (HMSI), bike maker Hero Honda's Gurgaon plant, component makers Lumax, Sunbeam, Caparo Maruti, Delphi and Gabriel.

While it is believed that car major Maruti Suzuki will be relatively insulated from the strike.

Auto industry analysts said if the tense situation persists, as has been the case over the past few weeks, the revenues of companies operating in the area could be impacted. HMSI, the leader in the scooter segment, has already admitted to having lost business in the festive season as production at its plant is down 50% and it has been unable to start a third production line.

Dilip Chenoy, director-general of Society of Indian Automobile Manufacturers (SIAM), said the industry body has raised the matter with the central government after many of its members complained of disruption in supplies that was affecting production.

Sources in industry associations said if the trouble escalates, it could even impact the proposed Delhi-Mumbai industrial corridor that is slated to pass through Haryana.

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