Two-wheeler maker Honda Motorcycle & Scooter India today said the labour strike at its unit will be over soon as the company has reached a broad understanding with the workers.
"We have already reached a broad understanding with the labour unions," HMSI President & CEO Shinji Aoyoma told reporters here.
Honda will be able to clear the order backlog of 1.4 lakh units within 2-3-months once the labour strike at its facility at Manesar is settled, Aoyama said.
"We are quite optimistic about clearing the backlog. Our third assembly line in Manesar plant started working since yesterday which has increased the daily production capacity to 4,600 units now from 4,200," Aoyama said.
The labour unions started a 'go slow' strike in HMSI's plant after the expiry of the agreement with the management signed in September 2006.Due to the stir, the company had lost around Rs 300 crore, HMSI General Manager, Sales & Marketing, Naresh Kumar Rattan, said.
"We would have been able to produce 75,000 more units if there had been no strike. The company saw the lowest sales of 50,000 units in October," he said.
"Apart from the order back-log, the company has faced 10 per cent cancellation too," Rattan said.But within a few weeks, the third assembly line alone can produce more than 1,000 units per day, he added.
