This, along with Hyundai's troubles, marks the return of labour unrest to the automotive industry, which saw especially turbulent times three years ago.
The plant produces utility vehicles like Scorpio, Bolero and Xylo, as well as Logan, the sedan produced in collaboration with Renault of France. It has 2,750 permanent employees, 1,200 temporary and 500 apprentices. It rolls out 486 vehicles every day.
According to deputy general manager (automotive sector) Uday Kumar Vaidya, the strike, which began Tuesday afternoon, has already caused a loss in production worth Rs 25 crore.
The workers at Nashik are protesting against the suspension of their union president, Madhav Dhatrak. They also allege that the company has been sitting for 22 months on a new salary agreement with workers.
The union says the strike will continue until its president, suspended for allegedly manhandling a security officer and misbehaviour, is reinstated and the management resumes talks on the salary agreement.
M&M has termed the strike illegal, and said that disciplinary action will be taken against the union president.
Speaking to Business Standard, Dhatrak said: "The action against me is completely baseless and I have not committed any act of indiscipline. On the contrary, the company management is deliberately delaying the signing of the new salary agreement. The term of the three-year salary agreement ended 22 months ago."
A statement from M&M said, "The management is in dialogue with the union and the workmen to resolve this impasse and the company is hopeful that wiser counsel shall prevail upon the union as well the workmen so that normalcy is restored at the earliest and the loss of production made good soon."
