Bajaj Likely To Challenge Hc Order On Temporary Workers

Bajaj Auto may appeal to the Supreme Court against the Mumbai High Court division bench's order dated July 12, 2001, in respect of 702 temporary workmen.

Rahul Bajaj, chairman and managing director of Bajaj Auto said: "Everybody is concerned about the judgement and I have received many calls from manufacturing companies. If even temporary workers who are not needed cannot be removed, a lot of companies will be in trouble."

"We can't take a short-sighted view on the matter. We may go in for an appeal in the Supreme Court," Bajaj indicated.

Earlier, the 702 workmen employed at Bajaj Auto's Akurdi plant, had filed an appeal challenging the order of the single bench of the Mumbai High Court in favour of the company. The division bench later set aside the order of the single judge and ruled in favour of the temporary workers.

The company has stated that the implications of the division bench order are under study, based on which the further course of action will be decided.

Due to slack demand for geared scooters which are mainly produced at the company's Akurdi plant, Bajaj Auto had announced a 5-day working week from July 13.

The company has cut down its workforce by 35.03 per cent over the last five years. From a peak total workforce of 21,273 in 1997, Bajaj Auto has scaled down its workers to 13,819 in 2001. In fiscal 2000-2001 alone, the company reduced its employee strength by 2,017 via the voluntary retirement scheme. The VRS cost the company Rs 79.9 crore.

In spite of the cut in workforce, Bajaj Auto's labour cost was up by 3.73 per cent to Rs 244.4 crore in the fiscal ended March 2001, as against the labour cost of Rs 235.6 crore in the corresponding period of the previous year. As a result, the share of labour cost in the total expenditure increased to 7.8 per cent from 7.4 per cent in the previous year.

Meanwhile, Madhur Bajaj, executive director of the company has been elevated as vice-chairman by the board of directors. Sanjiv Bajaj, general manager corporate finance has been elevated as vice-president. J Sridhar of Maharashtra Scooters has been inducted as the company secretary of Bajaj Auto.