Bajaj to shift 50 per cent production from Chakan plant if strike not over in a week

August 06, 2013 03:30 PM by Pratheek Kunder
Bajaj to shift 50 per cent production from Chakan plant if strike not over in a week


Bajaj Auto will shift 50 per cent of its production from its Chakan plant in Pune to Aurangabad facility if the strike doesn’t get over within a week. The ultimatum has come from the CEO & MD Rajiv Bajaj which clearly shows the BAL is losing patience over this issue.

The Chakan plant that manufactures the Pulsar, Discover and the KTM motorcycles is currently running with 900 workers out of 1500. The company has confirmed that they are not losing any sales for now as they stock for 2-3 weeks but also said that they cannot risk their future production. The decision was taken as they cannot rely on just one plant that may affect their exports and future product launches. At present, Chakan is operating at two-thirds its capacity with Aurangabad producing the rest. If by next week, the issue is not resolved then the company will start transporting its equipment’s and ask its vendors to start supplying to Aurangabad and Pantnagar facilities.

Over 1500 workers from the plant have been a part of this strike and have been demanding revision in their wage and also to allot 500 equity shares to each worker at a price of Rs 1 per share. They also want their sacked colleagues to be reinstated in the company.

"I've given my team time till next Monday." If the talks fail, "we will have to shift half the production out of Chakan on a semi-permanent basis. We can't stake our sales on this one plant," said Rajiv Bajaj, CEO  & MD, Bajaj Auto.

Source: Economictimes


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