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Honda maybe forced to scrap indian bike unit

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  • Honda maybe forced to scrap indian bike unit

    source-The times of india,frontpage,mumbai edition,10 oct2009

    In what would be a setback to foreign investor confidence in India,the japanese major has threatened to shotdown all major operations due to recurring labour problems.
    Honda loses 250cr due to labour trouble
    Production at hmsi is down by more than 50% which means the new line production has failed to start.Sources said the current trouble started over the formulation of the new long term wage settlement.As per the vp MR Mohan deepak for industrial relations at hmsi,the average CTC(read cost to company) for a shop floor worker is 25000rs.However the labours are demanding higher incentives which will push the ctc's greater than the shop floor workers in hero honda.
    If situation persists,Hmsi may have to either shift their operations to a different state or another country.
    Socha Toh Locha.

  • #2
    News approved

    @velociraptor: Please post the URL to the news site as well.

    It is unfortunate that HMSI is having labour issues. But I highly doubt closure will be really considered. Seems to me like posturing by the management. Hope this issue is sorted out soon.
    "Tough times never last, but tough people do." - Robert Schuller
    ---
    R.I.P Kriss; 15.06.1981 - 11.10.2009 -- You will not be forgotten.

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    • #3
      This is frightening news simply because we are seeing labor issues everywhere! If people don't want to work and be competitive, they have to realize that employers are quite happy to just move on to a workforce that is ready and willing. Somehow these unions are designed to take care of the needs of a few with the guise of camaraderie and unity with the rest of the union. Most union leaders cause trouble purely for personal political mileage. It is illogical and stupid...
      Kriss : 15.06.1981 - 11.10.2009
      You will not be forgotten...RIP

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      • #4
        Honda threatens to take 2-wheeler plant out of India - India Business - Business - The Times of India
        As per the news the factories present in the entire gurgaon area(read the Detroit of India) is suffering from such problem.Hope the problem gets solved.
        Last edited by velociraptor13; 10-10-2009, 01:31 PM. Reason: Link of the news,as requested
        Socha Toh Locha.

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        • #5
          Really a Sad news..hope the labour issue get resolved ASAP

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          • #6
            two weeks back VP(HR) of Pricol(auto parts manufacturer) was Hit to Death by workers on strike.that pretty much brings up the bad image generally about India.
            They want the government to ban unlawful outfits like CPI-ML which is unleashing violence and instigating workers.
            ^Point to Ponder with.
            Pricol VP's murder stuns industry- Politics/Nation-News-The Economic Times
            Get GNU/Linux

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            • #7
              I think this is very bad development....CTC of about 25K per month is very good salary for a shop floor worker. The employees demand is kind of too much. I am surprised to know HH's avg. salary is more than HMSI. They should temporarily shut down plant for few months w/o paying then things will change

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              • #8
                Ya it's true, coz my friend to book a New Honda Activa for his father before 3 weeks, they told he should wait 2 1/2 months and if he books with full cash he will get in 1.5-2 months period. so he went yesterday to book the bike in full cash. They said even if u book with full cash it will take 4 months for the vehicle. He said i don't need it. they said the production is not high for active and a very good increase in demand for the scooter. He said even for booking his swift(car) don't need this much time.
                sigpic...Ride Long...Ride Safe...

                When you dance with the devil, you wait for the song to stop...

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                • #9
                  This thing popped up in 2005 also where company worksmen were mercilessly beaten up by the policemen (obviously under the managements eyes)....

                  Seems like a problem with HMSI!
                  2002 - Pulsar 150 Classic (Still owned)
                  2005 - Pulsar 150 Dtsi (Still owned)
                  2006 - Eterno (sold)
                  2008 - Dio (Owned)
                  2009 - Pulsar 220 DTSi

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                  • #10
                    i also have booked a Honda dio and it is 1 month now.before they they can deliver on 10th ocotober..wht will happen now? can anybody suggest something?

                    i applied through Loan, 19000 already paid to the Loan provider

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                    • #11
                      Originally posted by shaukshemi View Post
                      i also have booked a Honda dio and it is 1 month now.before they they can deliver on 10th ocotober..wht will happen now? can anybody suggest something?

                      i applied through Loan, 19000 already paid to the Loan provider
                      Chances are slim as the production is down by 50% and the fresh batch production hasn't been started as the workers are going slow.Try hunting in other dealerships or maybe a neighboring state where if you are lucky might get one.Where are you located in kerala.Try calling ghani honda(palakkad) if possible,have always seen excess dios with them.
                      Last edited by velociraptor13; 10-10-2009, 08:31 PM.
                      Socha Toh Locha.

                      Comment


                      • #12
                        I'm too worried. Booked Dio a month back and I'm supposed to get it delivered by 15th this month. Full downpayment is made and loan is sanctioned.

                        Showroom guys hinted load will be delayed to Oct 20th.
                        #RetiredRider
                        #KeyboardWarrior

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                        • #13
                          then wats the future of their customers..?

                          hope they dont follow the yamaha's path,like yamaha did in past with great product like RX100 and RD350 yamaha ran away from indian market leaving no future for thier custumers.

                          today the most selling un-geared vehicle-Honda Activa and most trusted 150cc bike-Honda Unicorn with the most stylish 125cc bike-Honda Stunner,they have the wining combination in the maarket today.

                          Also the future plans of HSML are very confident inspiring with the launch of new Unicorn and 250cc bike....!

                          hope they some how manage to stay here in india otherwise we indian will loose some soon to be launch good bike from honda stable.

                          Comment


                          • #14
                            Originally posted by velociraptor13 View Post
                            Chances are slim as the production is down by 50% and the fresh batch production hasn't been started as the workers are going slow.Try hunting in other dealerships or maybe a neighboring state where if you are lucky might get one.Where are you located in kerala.Try calling ghani honda(palakkad) if possible,have always seen excess dios with them.
                            thanks for reply. i am from kannur and palakkad is far away...

                            Comment


                            • #15
                              Originally posted by shaukshemi View Post
                              thanks for reply. i am from kannur and palakkad is far away...
                              Hmm thats quite far away.Just gave a suggestion.
                              Socha Toh Locha.

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