A week-long tool down strike by 2000 contractual workers has forced Honda’s oldest manufacturing plant based in Manesar to suspend production.
The slowdown in retail demand has forced Honda, the second-largest two-wheeler company in India, to cut back on production and lay off surplus manpower. Trouble erupted between the management and the workers when 200 contract workers were fired at one go on the grounds of alleged misconduct.
The slowdown has hit the automobile sector the hardest. Companies are struggling with excess inventory while there is little demand for new vehicles. This prolonged slowdown is now forcing the manufacturers to lay off workers. With the economy showing no sign of recovery, such management-worker feuds are going to become more frequent.