Mahindra and Mahindra looses Rs 300 millions cause strike
10 March 2011
Mahindra and Mahindra (M & M), India’s one of the most key auto players seems to be lying low. This happened because it has recently suffered and still going on from a tool down strike by its workers in Nashik, Maharashtra.
The workers strike was with the administration for its demands and also to provide support to the union leaders. The union leader is on an indefinite hunger strike since last 5 days.
According to the reports, Mahindra and Mahindra (M & M) have already suffered a loss of around Rs 300 millions as it manufactures 550 vehicles a day. It includes some of the best selling vehicles such as Mahindra Xylo (300 units), Mahindra Bolero (200 units) also Mahindra Logan (50 units).
Pravin Shinde, General Secretary, M & M Employees union: “Nashik unit has almost 3,000 permanent workers. Out of which as many as 1,800 workers from the Grade O-2 category with the salary ranging between Rs 23,000 to Rs 24,000 and the rest receive a salary of Rs 9,000 with Grade N-1 category. The union is saying that these workers are doing the same work but getting paid half of what the Grade O-2 are receiving. The strike is to bring justice to the rest of the workers who they think are unpaid.”
The situation looks alarming for the company who is losing Rs 300 million per day
However, under the Company Act of 1956, it’s binding for the employers to give an equal pay to two workers for a same nature of work.