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| Rs 65 cr loss for Sunbeam Auto due to 52-day stir |
| Press Trust of India / New Delhi Nov 30, 2009, 16:25 IST |
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Hero Group-promoted auto components maker Sunbeam Auto today said its revenues for this fiscal will take a hit owing to losses of about Rs 65 crore, a consequence of the recent 52-day-long strike at Gurgaon facility.
The company, which posted revenues of Rs 1,200 crore in the last fiscal, was reeling under a labour strike for almost two months from September 22 to November 11 when about half of its 4,000 employees went on a tools-down agitation.
"Our company accrued losses of up to Rs 65 crore because of the strike. We believe that due to the strike, this year our turnover will be a little less than last fiscal's Rs 1,200 crore," a senior Sunbeam official said.
He said all 4,000 employees are now back at work and production of engine components, aluminium dye-cast and other materials now normal.
"The strike basically affected our supply to group companies like Hero Honda. We ran buses under police escort and community kitchen as contingency to make the factory continue to operate which ensured that supplies to other clients and exports remain unaffected," the official said.
The strike erupted following a dispute between the officially recognised union and a group of renegade employees.
While 65 per cent of Sunbeam's production goes to Hero Honda and other Hero Group companies, around 20 per cent is supplied to other original equipment manufacturers like Maruti Suzuki India, while rest 15 per cent is exported.
"Even during the 52-day long strike, supplies continued to non-group companies and our overseas clients. None of our clients have left us," the Sunbeam official said.
The officially recognised workers' union at Sunbeam is affiliated to the Congress-backed Indian National Trade Union Congress (INTUC).
The strike had started when a rival group of workers affiliated to the Communist Party of India-backed All India Trade Union Congress (AITUC) demanded polls for the union citing majority support among the employees.
This led to suspension of seven employees after which AITUC-supported workers laid down tools and went on an indefinite strike. During the course of the agitation, a further 22 employees were suspended for dereliction of duty.
The official union approached the Punjab and Haryana High Court which stayed any election process.
"Of the originally suspended seven employees, we have taken back two, while the cases of the rest five are pending with the labour court. Of the 22 suspended later, nine are back, seven will rejoin on December 20 and others are facing official enquiry," the Sunbeam official said.
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