Hero MotoCorp, the country's largest two wheeler manufacturer, has announced that talks will continue between its management and employee union of its Gurgaon facility on January 31, 2013. As per reports, the two parties are looking to settle few issues regarding a three year wage agreement, which has consumed two rounds of negotiations with no end result. The tripartite meeting organised between Hero MotoCorp's top-level management, senior officials from Haryana Labour Department and Hero MotoCorp Workers Union (HMCWU) on January 30, 2013 ended too with no clear cut result. HMCWU backs up nearly 1,200 permanent workers at the company's Gurgaon plant.
The first wage negotiations started during late August 2012 between the company and worker's union, after the submission of demands. Later the matter went to the DLC of the region for further discussions. The second negotiations began on January 25, 2013 but failed. Reportedly, Hero MotoCorp workers are asking for a monthly wage increase of up to Rs. 18,000 over a three year period. To which the company has planned to offer a hike of Rs. 7,500, as reported by industry sources.
In the third week of January 2013, Hero MotoCorp workers observed a slowdown in output at the company's Gurgaon based production unit. The slowdown resulted in loss in output of close to 1,000 scooter units. Further, the disgruntled employees succumbed to frustration and embarked on such a negative work ethic. Further, Hero MotoCorp's Gurgaon unit assembles 7,000 two-wheeler units everyday.
