 "Why Chakan strike won't have immediate impact on Bajaj Auto sales")
Bajaj Auto’s workmen at its Chakan plant have “stopped coming” to work thereby affecting production following the management’s refusal to allot them shares at discounted price.
Shares of the company were down 1.62 percent at Rs 1771.95, while the BSE Sensex was up 0.22 percent at 18669 at 10:13 am.
“The Chakan plant has an installed capacity of 1.2mn units and it manufactures products like Pulsar, Avenger, Ninja and KTM. We would like to seek more clarity from the management and remain watchful of the future development on this front. We do not see any immediate impact of the strike on the company’s sales given that it has an inventory of around 5-6 weeks in the system,” said brokerage Angel Broking.
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The company said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift of June 28.
“The workmen have, however, stopped coming to the Chakan plant from June 25 without assigning any reason for this stoppage,” BAL said in a filing to the BSE.
The company said it had earlier received a notice from the workmen’s union of its Chakan plant; Vishwa Kalyan Kamgar Sanghatana (KKS) stating that they propose to call for a stoppage of work by all the workmen employed in Chakan plant from the morning shift of June 28.
The reason for the strike was “that management had refused to concede their demand that all the workmen working in Bajaj Auto Ltd should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share”, it added.
DNA quoted KKS president Dilip Pawar as saying “Harassment by the company management on various issues forced the workers to launch a stop-work agitation. The workers will not work till their demands are met with.”
Representatives of the union could not be reached immediately for the strike.
As on March 31, the Chakan plant of the company has an annual capcity of produce 1.2 million units of motorcycles, which include the Pulsar, Avenger, Ninja and KTM brands.
With PTI inputs