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Bajaj Auto ready to lose 6 months production

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Pratheek Kunder

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Bajaj Auto ready to lose 6 months production

This comes as one of the most shocking statements by a motorcycle manufacturer. The top honcho has announced that he is ready for a long-haul face-off with workers, even if that means production coming to a halt for six months. The Chakan facility near Pune, which produces 70,000 to 80,000 vehicles a month, accounts for 25 per cent of the company's total two-wheeler output. The same plant manufacturers the KTM motorcycles.

The workers union at the factory, Vishwa Kalyan Kamgar Sanghatna, has given notice to the company to go on a strike from April 28. The union has made many new demands to the management along with a request to reconsider the old ones. These include 500 shares of the company for each worker at discounted price and sharing half of the two per cent of profit Bajaj spends on corporate social responsibility (CSR) with employees, apart from an equal representation on the CSR board and a museum and statue in the memory of Jamnalal Bajaj. Around eight months ago, the same set of workers had gone for a strike that ended after 50 days.

"We are ready for the long haul. We will not show any leniency to the unions or give in to their ridiculous demands. If that means having no production at the factory for the next six months, so be it. We are certain this is the end of the road for the 30-50 workers who are creating problems. As for the remaining 850 permanent workers, we are going to ask them to make a choice and come to work," said Bajaj to Business Standard.

Rajiv Bajaj said that some of these demands are not at all logical. The company doesn’t offer stock options to its top executives. It’s a highly profitable company which offers real money for real work. The demand on sharing CSR spending is illegal. One company cannot spend the CSR money on its own employees. 

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