Troubled component manufacturer Rico Auto Industries, facing labour unrest since October 18, has reported a daily production loss of about 25 per cent at its Gurgaon plant, “due to the unrest caused by a group of 16 employees”.
“We have an excellent rapport with our OEM (original equipment manufacturer) clients and they know us for our quality of products and our adherence to delivery schedules. There could be a temporary loss in our business moving to our competitors due this unrest,” Vice-President (HR) Surendra Chaudhury said.
Rico Auto has two manufacturing plants located in Gurgaon and Dharuhera. Industry executives estimate the monthly turnover from these two factories at around Rs 80 crore. Since October 20, the company has been unable to operate its Gurgaon plant at full capacity.
A segment of its employees have been working inside the factory under police protection and have been unable to leave the premises for the last few days. This is because workers who enter or leave the factory have been assaulted by the striking workers.
“So far, we have managed to bring 500 workers into the factory,” Chaudhury said. While the Gurgaon plant continues to face unrest, the Dharuhera plant faces no labour problems. The company supplies auto parts to Hero Honda, Maruti Suzuki, Tata Motors and General Motors.
As part of the negotiations between the company and the trade union, Chaudhury said out of the 16 workers who were dismissed last week, three workers may be taken back.
“Charges against the 16 employees were brought by the company on grounds of indiscipline and issuing threats to line managers. So the law will take its course and we will act then,” Chaudhury said.