Lock-out in Kanpur unit of LML

Two wheeler maker LML has declared a lock-out from today due to an illegal strike by its workers at its Kanpur unit.

"Due to the illegal strike by the workers, the company has declared a lock-out with effect from March '07," the company informed the Bombay Stock Exchange. The factory employs around 2,000 people and rolls close to 500 two-wheelers in a day.

Earlier last week, a company official had admitted that production of its latest offering LML-CRD has not achieved full capacity due to liquidity issues.

Although production ceased nearly a month ago, for the last one month the company was completing its export orders and getting balance components made. About 1,000 workers staged a demonstration recently at the assistant labour commissioner's office in the city.

The impact on local industry will be large because LML has nearly 100-150 vendors, either direct suppliers or tier 2 suppliers, according to Tarun Khetrapal, president, IIA, Uttar Pradesh.