Labour unrest: Hero MotoCorp talks tough

Says no compromise on indiscipline; announces Rs 1,300-cr investment

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Close to quelling labour unrest at its Haridwar unit late last month, Hero MotoCorp now seems to be grappling with new problems with the workforce at its Gurgaon facility, over the suspension of nine officebearers of the employees’ union last week.

“The issue has come because of indiscipline and insubordination and the workers taking law into their own hands. This is not at all acceptable to any management and not just the Hero management,” Managing Director and Chief Executive Pawan Munjal said.

Sources close to the development told Business Standard the Hero MotoCorp Workers’ Union in Gurgaon has decided not to take any direct action against the company immediately. Simultaneoulsy, tri-partite negotiations are on among the management, union representatives and labour authorities over the withdrawal of suspension notices and police reports  and the implementation of a wage settlement pact finalised in April.

“On Friday, FIRs (First Information Reports) were filed against nine officebearers of the workers’ union for allegedly assaulting supervisors on the shop floor of the Gurgaon facility. The company soon after issued suspension notices to these workers. While the union has ruled out a strike right now, talks are on for an early resolution of the issue in presence of state labour authorities,” said a person in the know.

Meantime, Hero MotoCorp said while it expected to sort the issue “very quickly”, the company would not “compromise on matters of discipline”. A spokesperson of the company said, “It is incumbent upon the management to take appropriate action in order to maintain the sanctity of the work environment in the plant. We wish to categorically reiterate that in no circumstances will Hero MotoCorp compromise on matters of discipline and the company stands firm in its adherence to the well-established code of conduct and guidelines applicable to all employees for smooth operations at the plant.” The company clarified production was normal at the Gurgaon and Haridwar units.

“At the time of entering into an agreement for wage enhancement, union representatives at our Gurgaon plant had promised to ensure that all workmen put in honest work. However, some workmen have continually refused to fulfill their side of the commitment. A conciliation meeting was held last week. However, some misguided elements in the union body took law into their hands and assaulted supervisors on the shop floor of our Gurgaon plant in full view of everyone on Friday. These officers who were assaulted have filed reports with the police and the police is free to investigate the matter,” the spokesperson added.

New units near Jaipur
Separately, Hero MotoCorp on Monday said it would invest Rs 1,300 crore in Rajasthan to commission an integrated state-of-the-art research & development (R&D) facility, its fourth production unit, a global parts centre and in the state. To come at an investment Rs 450 crore, the Hero Centre of Global Innovation and Research & Design would be spread on a 250-acre site in Kukas near Jaipur. The facility would be commissioned in the first quarter of 2015.

Munjal, who laid the foundation stone of the R&D centre on Monday, said the company would employ 3,000 people across its three facilities in the state. The Kukas centre alone will employ around 600 engineers and support staff.

Hero MotoCorp’s current R&D centres at Gurgaon and Daruhera facilities would shift to Kukas once the Hero Centre of Global Innovation and R&D becomes operational. The company would develop models for domestic and international markets at the unit. Currently, the company is investing two-three per cent of its revenues on R&D.