The Indian two wheeler company Hero Motorcycle and Scooter India, is in much waters with the labor problem persisting largely and the sale will fall down to 50% this month. This will make the company to secure just 50000 bikes and scooters as against 1 lakh. Despite the festive season, the company is facing this crisis, which may extend upto December at least. The company is a pioneer in the gearless scooter segment – Activa- and is popular with its branded bikes Unicorn, the Shine and the Stunner. This hassle makes the direct impact on the customers who are left with long time wait for the delivery.
The labor crisis in the Gurgaon plant spread to other crisis with the suppliers like Rico Auto, Sunbeam auto and Hema Engineering. But it is not as much as in other companies quoted. The labor are demanding higher wages. As this has been the case, there is no official work at other production unit. But the company has offered for talks with the long term vision to resume the production and does not leave any risk to affect the course. The workforce in HMSI includes 1500 whose average age is 28 who get Rs25000/ as salary per month. Other auto industries who offer the same package are Maruti Suzuki and Hero Honda who does not have any such problem. The Hero Motors insists that their company is not such an old company. the company hopes to get an amicable solution through talks, avoiding complications.
The company is more on the point of reviving the production than to confront against the labours. The serious turn took with the outbreak of Haryana polls and the results will decide the company’s feat, sources claim. The Gurgaon belt has become the hugely influential and wealthy”, which is altogether a new phenomenon. The increase of the land sale in the Special Economic Zone and the thronging of the entrepreneurs in the Manesar region prompted this crisis. This has led to severe law and order question too. Amidst these hiccups, some of the major companies are exploring alternative venues for their show. In particular HMSI, foresees a dip of 1.4 million units, given the fact that the crisis continues for another one or two years. But the company is yet to make a decision on alternative venue.