The stand-off between the Mahindra management and its Nashik plant union entered the second week with both the sides refusing to budge and a meeting with the labour commissioner failing to materialise.
The hunger strike by two senior union leaders since May 1, seeking wage hikes, has not affected production as other workers remain on duty.
The plant employs around 4,000 workers and produces most of the M&M models such as the Xylo, Bolero, Quanto and Scorpio besides the mid-size sedan Verito.
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A Mahindra spokesperson offered no comments.
"The hunger strike by the two senior union leaders, who are demanding immediate signing of the wage accord by the company, entered the eighth day today but the management remains unmoved," union sources said.
The previous wage agreement expired in February.
"The company wants the two leaders to end their hunger strike and then come for negotiations while the union leaders are firm on their stand that it should first sign the wage hike agreement, which it has been negotiating with the union for the past almost five months," sources said.
The union is demanding inflation-linked wage revision, besides restricting the wage agreement period to three years against the present three-and-a-half years.
"The management wants to increase production 25 per cent before considering the wage hike demand. Also, against our proposal of a Rs 10,000 hike, their offer is only Rs 6,400, which is even lower than the one proposed by the DLC. Labour department proposed increment of Rs 8,662," sources said.