Mico staff call off strike

Mico Employees Association has called off their proposed strike, scheduled to begin on Tuesday, following an agreement signed with the management on May 15.

During a tripartite meeting held between the Mico (Motor Industries Company Ltd) management, employees union and the labour commissioner, the management has agreed to confirm the services of some 'deserving' temporary workmen over a period of one year to two years, company sources said.

"The matter was not very serious. We have mutually agreed and have settled the issue in consultation with the labour commissioner. As per the terms, the employees' association has agreed to increase their productivity at the Bangalore plant and the management has in turn agreed to provide some financial benefits during the course of time," a company spokesperson told Business Standard.

In a statement issued to the Bombay Stock Exchange on Tuesday, the company has informed that following a settlement signed before the additional labour commissioner, normalcy has been restored at the Bangalore plant.

However, the spokesperson has refused to divulge details of the settlement to the press stating that "it was purely an internal matter".

About 2,200 unionised employees at Mico's Bangalore plant had served a strike notice on May 9 to the management to go on strike with effect from May 16, 2006. They had demanded the confirmation of over 150 temporary workmen and a raise in their wage package.

The workers had also demanded that the management set right the inter-plant disparity like prospective benefit, incentive rates, customary gift to employees.

Mico posted a topline of Rs 3,103 crore for year-ended December 31, 2005 up from Rs 2,435 crore for year-ended December 31, 2004.

The company posted a net profit of Rs 343 crore for year-ended December 31, 2005 as compared to Rs 374 crore for year-ended December 31, 2004. Robert Bosch GMbH controls 60.55 per cent of Mico. The company employs a total of 9,853 workers, while 2,200 are employed in Bangalore plant.