Leyland says strike at Hosur unit to end soon

Ashok Leyland Ltd., India's second largest commercial vehicle maker, is hopeful of resolving the strike by employees of its Hosur unit in Karnataka soon.

"We are very hopeful that the strike may end very soon. It can also happen today evening," K Sridharan, executive director - finance, said on Thursday.

Workers at Hosur unit went on strike on August 23 over the triennial wage settlement.

The management is hopeful that the workers may agree for the proposed Rs 3,750 hike in the monthly salary instead of Rs 6,000 hike demanded by the workers earlier.

"The final wage settlement may be closer to our (salary) proposal," he said. Currently, the average salary of workers at the Hosur unit is Rs 13,000 per month, Sridharan said.

Ashok Leyland is also asking for at least 50-60 per cent rise in productivity in the new wage agreement. "A 60 per cent rise in productivity would mean we would make 275 engines per month, instead of 180 engines produced at the plant earlier," Sridharan added.

Ashok Leyland's sales have been affected owing to the strike.

In September, the company reported a marginal year-on-year rise to 4,619 units.

As regards exports of automobile components, Sridharan said exports to China are increasing, but he did not give further details.