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.


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.
.Just gave a suggestion.

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