Labour issues at Hero MotoCorp's Gurgaon plant worsen; stock down

MUMBAI: Shares of India's largest two-wheeler company Hero MotoCorp continued to remain under pressure as the recent disappointing third quarter results and the ongoing labour issue at its Gurgaon plant pushed the bulls on sidelines.

Labour troubles for the company are worsening as workers are now planning to go slow on production beginning tomorrow, ET Now reported.
The workers have been protesting against the low wage hike suggested by the company. The talks on wages between the management and workers at Gurgaon plant failed yesterday.

The workers have been demanding Rs 15,000 -18,000 monthly hike in wages while the management is willing to give only Rs 7,000 hike in wages per month.

According to the management, the company will continue to engage with the workers amicably on the wage issue. However, it can't be coerced into decisions governed by external pressure tactics.

The negotiations between the company and the workers began in August 2012 after the latter demanded wage hikes similar to Maruti Suzuki and HMSI. Two-wheelers like Passion, Maestro and Pleasure are manufactured at the Gurgaon plant.

The stock was at Rs 1,762, down 0.56 per cent, on the NSE. It touched a high of Rs 1,769.65 and a low of Rs 1,750 in trade today.