Hero in talks with workers to shift to Neemrana plant

Casual workers at the Gurgaon parts centre are resisting the move due to the lower wages being offered

Don't want to miss the best from Business Standard?

Hero MotoCorp is in talks with about 300 workers at its parts centre in Gurgaon for a transition to the company’s new facility in Neemrana, Rajasthan. Sources in the know say casual workers at the Gurgaon plant have been resisting the shift to the Neemrana global parts centre (GPC) due to the lower wages being offered.

Casual workers at the Gurgaon centre had rejected the offer, sources said.

A Hero MotoCorp spokesperson said, “Currently, we are in discussions with workers at our parts centre in Gurgaon for a smooth transition to the new state-of-the-art GPC in Neemrana. We are hopeful of reaching an amicable solution at the earliest.”

A worker at the company’s Gurgaon unit said, “Casual workers at the spare parts division here have been asked to either accept a transfer to the Neemrana plant at lower wages compared to what we are getting here or take compensation and quit the company.” The worker claimed the average salary of casual workers at the Gurgaon facility was about Rs 11,000 a month, against the Rs 5,000-6,000 a month being offered for the Neemrana facility.

Hero MotoCorp has invested Rs 160 crore in setting up the GPC in Neemrana, spread over 35 acres. The company is also set to commission its fourth manufacturing unit in Neemrana, in which it has invested about Rs 400 crore. With the commencement of this facility, the company’s total installed production capacity will rise from 6.9 million units a year to 7.65 million units.

Separately, production at the Gurgaon plant came to a stop for about three hours on Tuesday afternoon due to a strike called by the Hind Mazdoor Sabha (HMS) to show solidarity with workers of Baxter, which has been shut for some time. A source in the know said all unions affiliated with HMS had halted work for three-four hours in Manesar.

It was learnt subsequently, production had resumed at Hero MotoCorp’s Gurgaon unit.

Hero MotoCorp has three manufacturing facilities—at Gurgaon and Dharuhera in Haryana and Haridwar in Uttarakhand.