Hyundai Motor India (HMIL) today said a section of its workers belonging to an unrecognised union at its Chennai plant have threatened to go on strike from December 5, which could hurt its production.
"Hyundai Motor India has received a faxed communication dated November 19 from the unrecognised union stating that they will resort to direct action from December 5," the company said in a statement here today.
If such an action is resorted to, then it will disrupt production resulting in loss of revenues and delayed distribution schedules and will act as a deterrent to industrial peace and harmony in Tamil Nadu, it added.
According to people in the know of the development, workers belonging to the Hyundai Motor India Employees Union, which has support of about 300 workers, have threated to go on strike, ahead of the upcoming workers committee elections.
The strike threat comes within four months of the company and workers had signed a memorandum of understanding in July this year ending a six-day strike.
A Soundararajan, Tamil Nadu state general secretary of Centre of Indian Trade Unions, who spearheaded the strike in July and who is again leading the workers this time was unavailable for comments.
The company, however, said the strike threat by the unrecognised union is a breach of the agreement signed in July.
"The apparent reason for issuing the statement is to disrupt the planned process of holding elections for the workers committee," the company statement said.
Earlier on July 23, it had signed a long-term wage settlement with the workers committee which was ratified by a majority of the employees. As per the agreement, the management had agreed to re-employ 20 dismissed employees, pay performance bonus and also agreed to transfer back nine employees to Chennai.
"...And the main demands of the striking employees represented by an outside union with political affiliation are met," the HMIL statement added.
