Strike hits production at Hyundai Motor India

A section of workers at Hyundai Motor India Ltd (HMIL) struck work on Tuesday demanding reinstatement of dismissed employees and negotiation on wage settlement with their representatives, said a union leader.

The protest was launched by workers affiliated to Hyundai Motor India Employees Union (HMIEU), he said.

"The first and second shift workers are striking work. Around 450 workers are outside the factory. The conciliation meeting today (Tuesday) at the labour department's office was not successful," R. Sridhar, HMIEU general secretary, said.

He said the union had given a strike notice, which was pending. The union demanded that the management should renegotiate the wage settlement with it and reinstate 27 dismissed workers.

HMIL has two plants at Irrungattukottai, around 45 km from Chennai, with a capacity to roll out 630,000 units per year.

The company Oct 18 signed a three-year wage settlement with another union United Union of Hyundai Employees (UUHE). The wage settlement would remain effective till March 31, 2015.

Though HMIEU is older than UUHE, the company management recognised the latter and not the former.

The wage hike ranges from Rs 11,000 to Rs 13,000 per month, excluding components like variable dearness allowances and other welfare benefits.

The employees will get 40 per cent of the wage increase in the first year and 30 per cent in the next two years.

Terming the strike as illegal disruption of work, HMIL in a statement issued here said: "Approximately 130 workers representing the minority CITU (Centre of Indian Trade Union)-affiliated HMIEU, disrupted work illegally."

The company said the disruption affected production for about 78 minutes. "Hyundai Motor India produces 2,000 cars every day and the production loss because of the work disruption is estimated to be 59 cars," the statement said.

HMIL has already recognised UUHE as the official union who have a majority membership of over 1,300 permanent workers amongst a total strength of 2,007 permanent workers, the company said.

However, Sridhar said the strike is on and would continue Wednesday as well.