Chennai's Automotive and Auto Components Industry Updates!

[krishnancv]

Races happen every year at Irungattukottai. The national JK tyre championships and a few other races are being held here annually. There are three to five other racing champioships that happen every year. It is in the hands of the management to market these races by video coverage etc.

Hrere is a news on that:http://blog.taragana.com/n/jk-tyre-n...saturday-4325/

[Kewl Batty]

Ashok Leyland, Nissan JV to rework manufacturing plans
19 Jul 2009, 1233 hrs IST, PTI

MUMBAI: In view of the current economic downturn and the reduction in demand for M&HCVs, the Hinduja Group-controlled Ashok Leyland has
redrawn its capacity enhancement programmes to be in line with market outlook.

The company will ensure that future expansion is well aligned to market demands, the company said in its annual report here.

"In view of the global slowdown, Ashok Leyland and its joint venture partner, Nissan Motor Co of Japan, are reworking the manufacturing plans including the option of phased implementation of the project," Ashok Leyland's Chairman, R J Shahaney, said in the annual report.

The company had signed an agreement with Nissan in 2008 to form three joint venture companies for the light commercial vehicles (LCV) business in India for technology development, vehicle manufacturing and powertrain manufacturing.

Fiscal and other incentives from the Tamil Nadu Government for the project have been secured, although allotment of land for the project is awaited, Shahaney said.

The Indian LCV market has witnessed a tremendous growth in the recent past. During the last financial year, LCVs contributed to more than half of total CV volumes.

[Subra]

http://www.livemint.com/2009/07/1915...l-call-on.html

The second largest carmaker of Europe, PSA Peugeot Citroen, will take a final call by this year-end on whether to enter India, although sometime back it was determined to set up shop in the country.
-----------------------------------------------
Oops have to wait till year end.

[Kewl Batty]

Hyundai production down by 40% as workmen protest new wage accord
24 Jul 2009, 2002 hrs IST, ET Bureau

CHENNAI: Hyundai Motor India (hmil),the country’s second biggest car maker said on Friday its production was down by at least 38-40% due to the
labour strike at its factory near Chennai. The company’s attempt to buy peace with its workers by hiking salaries seems to have backfired as a section of workers protested the hike and resorted to a sit-in strike at the plant from Thursday night.

While Hyundai played down the issue on Friday morning and said the production was at near-normal levels, the company spokesperson said in the evening that production was down by at least 38-40%. "Some workers are striking in the plant and we are trying to negotiate with them," the spokesperson added.

The HMIL employee union, supported by the CITU is spearding the strike. As part of the wage settlement, Hyundai gave a hike ranging from 21-24% over three years, effective from 1 April 2009. While the CITU-led union was pressing for its recognition, management reached wage settlement with the existing Workers’ committee.

HMIL union leaders claimed that over 90% of the permanent workers were on a sit-in strike but the company dismissed the same. Hyundai Motor has over 1,600 permanent technicians at the plant.

It may be recalled that this is the second labour unrest in the last four months at Hyundai. In May, a 18-day strike by the same HMIL union was called off after the State Labour Commissioner held parleys with the union and management.
The union claims that the management has violated the government’s advice by entering into a wage settlement with the Workers Committee. It is planning to take up the matter with the state government.

Apart from the standoff between the management and its workers, what will be watched closely is how the government reacts to the development. Tamil Nadu has attracted a slew of multi-national companies such as Hyundai, Ford, Dell and Saint-Gobain, but how it reacts to the Hyundai issue could be a pointer for the other MNCs.

[sridhar_n]

one major advantage Chennai / Tamil Nadu had was peaceful industrial relations. Is this advantage under threat now?? This doesn't augur well for the future investments.

[ranga]

Originally Posted by Kewl Batty

Hyundai production down by 40% as workmen protest new wage accord
24 Jul 2009, 2002 hrs IST, ET Bureau

While TMC lead by Mamata Banerjee will not allow Industrial development in West Bengal ruled by the communists the same communists will not allow industrial growth in other states like TN.The problem has intesified now as the left parties in TN are against the ruling DMK Govt.As wrongly claimed TN never had/has a peaceful industrial climate.There are many instances of strikes and lock outs in Dunlop company,MRF,Ashok Leyland,Standard motors,ITC packaging co Tiruvitiyur (where there was destruction of the factory premises),Pricol, Coimbatore, NLC, SIMA etc etc.When compared to Chennai the situation in automobile manufacturing areas of pune and Gurgaon is better with far less industrial unrest on account of lesser presence of CITU trade union activity in these states.Toyoto Kirloskar motor company near Bangalore had labour unrest few years back but the Govt there handled amicably and since then there are no strikes and productivity also improved conforming to tough japanese standards.This has prompted the japanese automobile giant to go for expansion at the existing location itself for manufacturing small compact cars.The communists supported labour union is also negligible in Bangalore/Karnataka and this is a blessing in disguise for that state.

[Subra]

http://www.hindu.com/2009/07/26/stor...2660021300.htm

CHENNAI: Hyundai Motor India Ltd. (HMIL) is confident that the move to shift the export production of i20 cars to a yet-to-be-identified location in Europe will have no adverse impact on the capacity use at its plant near here.

Addressing a press conference at the factory on Saturday, H. S. Lheem, Managing Director, said shifting of i20 production to Europe would happen sometime next year. At present, the company has operations in three countries in Europe — Czech, Slovakia and Turkey. i20 could be produced in any one of the plants in these locations, he said.

The confidence on managing the capacity stemmed from two factors. For one, domestic demand for i20 had been in excess of anticipation. The company had estimated a demand of 400 numbers for i20s.

The volume, however, had grown to 4,000 this month, he pointed out. Second, the company was working on a small car. This could happen in two years.

Mr. Lheem said the absence of a free trade agreement (FTA) with the European Union would make export from India to Europe unattractive and cost-ineffective. In this context, he urged the Central Government to enter into an FTA pact with the EU. He felt that the competitiveness of HMIL could suffer if the Indian Government did not go in for FTAs. Mr. Lheem said 55 per cent the company’s exports were to Europe. Imports into EU attracted a duty of 6.5 per cent, he said. In the absence of an FTA with the EU, the Government should at least compensate the company the ‘loss’, he added.

Mr. Lheem said the Tamil Nadu Government had been giving a ‘strong support’ to Hyundai. “We have no plans to hunt for other locations within the country,” he added. To a question, Mr. Lheem said Hyundai had received the ultra-mega car project status (investment as the criteria). “We are asking the Government to declare HMIL as a public utility,” he added.

The MD was confident that the labour dispute at the factory would be resolved soon. The labour dispute comes in the wake of the company inking a three-year wage revision pact with the internally elected workers’ committee.

[Subra]

Originally Posted by ranga

While TMC lead by Mamata Banerjee will not allow Industrial development in West Bengal ruled by the communists the same communists will not allow industrial growth in other states like TN.The problem has intesified now as the left parties in TN are against the ruling DMK Govt.As wrongly claimed TN never had/has a peaceful industrial climate.There are many instances of strikes and lock outs in Dunlop company,MRF,Ashok Leyland,Standard motors,ITC packaging co Tiruvitiyur (where there was destruction of the factory premises),Pricol, Coimbatore, NLC, SIMA etc etc.When compared to Chennai the situation in automobile manufacturing areas of pune and Gurgaon is better with far less industrial unrest on account of lesser presence of CITU trade union activity in these states.Toyoto Kirloskar motor company near Bangalore had labour unrest few years back but the Govt there handled amicably and since then there are no strikes and productivity also improved conforming to tough japanese standards.This has prompted the japanese automobile giant to go for expansion at the existing location itself for manufacturing small compact cars.The communists supported labour union is also negligible in Bangalore/Karnataka and this is a blessing in disguise for that state.

Come on Ranga. Did u forget the clash between the police and workers in Honda's plant near Delhi few years back ? Honda opted for Rajastan for its second plant after its experience. For the last few years, Pune is witnessing anti-nortth agitation and lot of workers from those places were forced to leave. The auto production was severely hurt for tatas, mahindras etc.
Labor issues were not resolved well in Toyota's plant near Bangalore. After Toyota threatened to move out, the state labor comissioner stepped in.
Management also has to show some maturity in dealing with labor issues.

[sridhar_n]

Yes,the management has to handle the labour issues fairly; and the workers also have to be reasonable in their demands. The IR scenario in TN is far better as compared to other States and the govt should ensure that this is maintained and improved further.

[ranga]

As expected a small number of incorrigible work force is holding the company and 112 suppliers of components to ransom.if this issue is not settled within reasonable time it will be curtains for future investments in TN.It is only in Tamilnadu that during these difficult times of economic meltdown world over and growing unemployment apart from job losses that for such a silly and stupid reason of recognition of the labour union that the small number 0f about 300 technicians out of a total force of around 1625 employees undertake sit down strike threatening other workers and possibly sabotage the machinery if other majority non striking workers commence work.This is nothing but as they say in tamil "putting mud himself on one's own head"
Wage pact: uncertainty continues in Hyundai

http://www.hindu.com/2009/07/28/stor...2855761500.htm

Special Correspondent





--------------------------------------------------------------------------------

Management

is toying with

the idea of

declaring a lock-out


--------------------------------------------------------------------------------



CHENNAI: With no reconciliation in sight with a section of technicians who have been on a sit-in strike since a fresh wage agreement was signed with a seven-member workers’ committee last week, the management of Hyundai Motor India Ltd. (HMIL) is toying with the idea of declaring a lock-out at the factory near here.

Though the management is hoping that the agitating technicians, numbering around 300, would come around to accept the fresh wage pact, things have, according to sources, drifted from bad to worse. “With no reconciliation in sight, the uncertainty continues,” the sources added. The sit-in strike, sources said, had hit production at Plant-I. The management was concerned about the safety of the working employees, they added. Also, the management, according to these sources, was deeply worried about ensuring the quality of production. Given these twin apprehensions, the management, sources said, was constrained to look at the closure option unwillingly. When contacted, Rajiv Mitra, Head of Corporate Communication, said, “It (lock-out) is an extreme possibility. We are, however, reluctant to do it”. The technicians have been demanding the recognition of the union and re-instatement of the 75-odd dismissed workmen, among other things.

At a press conference on Saturday, H. S. Lheem, Managing Director, expressed the optimism that the striking technicians would come around and accept the wage agreement. He had also asserted that “I will never intentionally terminate even one employee”. There are about 1,625 technicians in HMIL.

According to Mr. Lheem, over 50 per cent of the technicians had signed the wage agreement. If the current impasse triggers a lock-out, it could impact 80,000 workmen across the chain. HMIL has a vendor base of 112, comprising 40 Korean units and 72 Indian firms. These vendors sustain 80,000 jobs, either directly or indirectly.


http://www.thehindubusinessline.com/...2851390200.htm


Hyundai mulls lock-out at Chennai plant








T. Murrali


Chennai, July 27 Hyundai Motor India Ltd (HMIL) is mulling lock out of its plant at Sriperumbudur, near Chennai, since the talks between the company and the 300-odd striking technicians reached a stalemate on Monday evening.

Mr Rajiv Mitra, Head, Corporation Communications, HMIL, told Business Line that the lock-out is “an extreme possibility”. While the company is not inclined towards the step, it may be forced to it because it perceives a threat of sabotage.

The company signed an agreement last week with a Workers’ Committee, constituted after elections held among the technicians in August 2007, which gave the workers a wage increase of 21-24 per cent over three years, from April 1, 2009.

The increase works out to Rs 8,280 a month. However, about 300 technicians are not satisfied with it and have been protesting with a sit-down strike.

On Saturday HMIL’s Managing Director, Mr H.S. Lheem had told journalists that he was confident the workers would accept the agreement. He also said that there had not been a major loss in production because of the agitation.

Against a planned production target of 32,660 cars, the company had so far produced this month 31,647 cars – representing 96.3 per cent productivity.

Of the 1,960 cars targeted to be produced on Friday, the company churned out 1,404 – or 71.6 per cent of the target.

[chennaidesi]

This is a very serious issue to be addressed immediately.

[H Factor]

Originally Posted by ranga

As expected a small number of incorrigible work force is holding the company and 112 suppliers of components to ransom.if this issue is not settled within reasonable time it will be curtains for future investments in TN.It is only in Tamilnadu that during these difficult times of economic meltdown world over and growing unemployment apart from job losses that for such a silly and stupid reason of recognition of the labour union that the small number 0f about 300 technicians out of a total force of around 1625 employees undertake sit down strike threatening other workers and possibly sabotage the machinery if other majority non striking workers commence work.This is nothing but as they say in tamil "putting mud himself on one's own head"
Wage pact: uncertainty continues in Hyundai

http://www.hindu.com/2009/07/28/stor...2855761500.htm

Special Correspondent





--------------------------------------------------------------------------------

Management

is toying with

the idea of

declaring a lock-out


--------------------------------------------------------------------------------



CHENNAI: With no reconciliation in sight with a section of technicians who have been on a sit-in strike since a fresh wage agreement was signed with a seven-member workers’ committee last week, the management of Hyundai Motor India Ltd. (HMIL) is toying with the idea of declaring a lock-out at the factory near here.

Though the management is hoping that the agitating technicians, numbering around 300, would come around to accept the fresh wage pact, things have, according to sources, drifted from bad to worse. “With no reconciliation in sight, the uncertainty continues,” the sources added. The sit-in strike, sources said, had hit production at Plant-I. The management was concerned about the safety of the working employees, they added. Also, the management, according to these sources, was deeply worried about ensuring the quality of production. Given these twin apprehensions, the management, sources said, was constrained to look at the closure option unwillingly. When contacted, Rajiv Mitra, Head of Corporate Communication, said, “It (lock-out) is an extreme possibility. We are, however, reluctant to do it”. The technicians have been demanding the recognition of the union and re-instatement of the 75-odd dismissed workmen, among other things.

At a press conference on Saturday, H. S. Lheem, Managing Director, expressed the optimism that the striking technicians would come around and accept the wage agreement. He had also asserted that “I will never intentionally terminate even one employee”. There are about 1,625 technicians in HMIL.

According to Mr. Lheem, over 50 per cent of the technicians had signed the wage agreement. If the current impasse triggers a lock-out, it could impact 80,000 workmen across the chain. HMIL has a vendor base of 112, comprising 40 Korean units and 72 Indian firms. These vendors sustain 80,000 jobs, either directly or indirectly.


http://www.thehindubusinessline.com/...2851390200.htm


Hyundai mulls lock-out at Chennai plant








T. Murrali


Chennai, July 27 Hyundai Motor India Ltd (HMIL) is mulling lock out of its plant at Sriperumbudur, near Chennai, since the talks between the company and the 300-odd striking technicians reached a stalemate on Monday evening.

Mr Rajiv Mitra, Head, Corporation Communications, HMIL, told Business Line that the lock-out is “an extreme possibility”. While the company is not inclined towards the step, it may be forced to it because it perceives a threat of sabotage.

The company signed an agreement last week with a Workers’ Committee, constituted after elections held among the technicians in August 2007, which gave the workers a wage increase of 21-24 per cent over three years, from April 1, 2009.

The increase works out to Rs 8,280 a month. However, about 300 technicians are not satisfied with it and have been protesting with a sit-down strike.

On Saturday HMIL’s Managing Director, Mr H.S. Lheem had told journalists that he was confident the workers would accept the agreement. He also said that there had not been a major loss in production because of the agitation.

Against a planned production target of 32,660 cars, the company had so far produced this month 31,647 cars – representing 96.3 per cent productivity.

Of the 1,960 cars targeted to be produced on Friday, the company churned out 1,404 – or 71.6 per cent of the target.

--------------------------------------------------------

Most of the cos in service industry does not have unions but still employees are surviving. If there is attrition and competition in the market naturally the employers shall be forced to increase the salary. Its a cycle, assume we lose all new investments in the pipeline due to these kind of labour unrest, naturally there will be lower demand thus lower cost and EE need to demand for increase. I mean, the market will automatically take care of your increment provided you are competitive.

Because of these 300 odd employees, the entire state may get negative image. I dunno why the govt is mute on this issue.

[die4chennai]

CHENNAI: The vexatious labour dispute in Hyundai Motor India (HMIL) has been

smoothly resolved with the CITU led Union and the management
signing an
agreement before the State Labour Minister, T M Anbrarasan in Chennai on Tuesday.

An official release said the accord was reached based on the advice given by Chief Minister, M Karunanidhi and deputy CM, M K Stalin. It has found an amicable solution to the dispute relating to the dismissed workmen.

Also, the workers, who were on strike, have accepted the terms of the wage revision clinched on July 23, 2009 and immediately returned to work. With this, the Government has paved the way for prevailing a congenial atmosphere in the factory, the release said.

It is learnt, the management has won in its stand of not recognising the union (formed in July 2007) which is the contentious issue between the parties. But, it has conceded to the union's demand for re-transferring nine workmen, who were shifted outside Chennai on disciplinary grounds.

Before the end of next year, they will be moved back, not to the plant, but to the associated units of HMIL like its work shops.

Also, of the total 81 dismissed workers, it has agreed to re-instate a maximum of 20. This will be done by the commissioner of Labour, who will look into the gravity of the charges and give his recommendations. All the cases are now before the Court.

The company has also agreed to revoke the punitive actions taken in the last two years against the workers of the union in the form of wage cuts, non-disbursal of bonus, gold coin, gifts etc., This will cover 700 to 800 workmen.

Hyundai officials appreciated the efforts made by the State Chief Minister, Deputy CM the Labour Minister and officials for finding an amicable solution to the dispute and to the mutual satisfaction of the parties.

Senior CITU leader, A Soundararajan, who was spearheading the agitation by the union termed the outcome a big achievement for the union. " The very fact the management was holding talks with us in the last three days itself is a sort of recognition of our strength and charter of demands".

He said the State Government had also acted tough with the management, as it went back on some of the assurances it had given to the Commissioner of Labour.


http://economictimes.indiatimes.com/...ow/4830863.cms

[Subra]

Originally Posted by die4chennai

CHENNAI: The vexatious labour dispute in Hyundai Motor India (HMIL) has been

smoothly resolved with the CITU led Union and the management
signing an
agreement before the State Labour Minister, T M Anbrarasan in Chennai on Tuesday.

An official release said the accord was reached based on the advice given by Chief Minister, M Karunanidhi and deputy CM, M K Stalin. It has found an amicable solution to the dispute relating to the dismissed workmen.

Also, the workers, who were on strike, have accepted the terms of the wage revision clinched on July 23, 2009 and immediately returned to work. With this, the Government has paved the way for prevailing a congenial atmosphere in the factory, the release said.

It is learnt, the management has won in its stand of not recognising the union (formed in July 2007) which is the contentious issue between the parties. But, it has conceded to the union's demand for re-transferring nine workmen, who were shifted outside Chennai on disciplinary grounds.

Before the end of next year, they will be moved back, not to the plant, but to the associated units of HMIL like its work shops.

Also, of the total 81 dismissed workers, it has agreed to re-instate a maximum of 20. This will be done by the commissioner of Labour, who will look into the gravity of the charges and give his recommendations. All the cases are now before the Court.

The company has also agreed to revoke the punitive actions taken in the last two years against the workers of the union in the form of wage cuts, non-disbursal of bonus, gold coin, gifts etc., This will cover 700 to 800 workmen.

Hyundai officials appreciated the efforts made by the State Chief Minister, Deputy CM the Labour Minister and officials for finding an amicable solution to the dispute and to the mutual satisfaction of the parties.

Senior CITU leader, A Soundararajan, who was spearheading the agitation by the union termed the outcome a big achievement for the union. " The very fact the management was holding talks with us in the last three days itself is a sort of recognition of our strength and charter of demands".

He said the State Government had also acted tough with the management, as it went back on some of the assurances it had given to the Commissioner of Labour.


http://economictimes.indiatimes.com/...ow/4830863.cms

Good work by the state govt.

[kg4129]

The issue not gone beyond the control..
Chief Minister and his deputy interfered in right time and reduced the temper...
In future, it's most important to have cordial relationship between Employee and the Employer..

[sridhar_n]

Originally Posted by kg4129

The issue not gone beyond the control..
Chief Minister and his deputy interfered in right time and reduced the temper...
In future, it's most important to have cordial relationship between Employee and the Employer..

Don't know if HMIL (partially) heeded to the union's request on the govt's intervention...if this is the case, it will set a bad precedence. But, on the whole its encouraging that the govt stepped in and has resolved the issue. Now that the wage settlement is reached, HMIL should force the union to sign a no-strike pact till the expiry of the term of this settlement. Hopefully, they would have done it.

[die4chennai]

MRF showed impressive results in this quarter despite its lockouts in puducherry and arakkonam plants...

No idea how it happened inspite of recession and lock outs

[sridhar_n]

Originally Posted by die4chennai

MRF showed impressive results in this quarter despite its lockouts in puducherry and arakkonam plants...

No idea how it happened inspite of recession and lock outs

Not only MRF even Ceat has posted good numbers. The reason I heard was that the tyre companies did not reduce the prices when the demand went down last quarter. This quarter around, the demand has picked up and with the same high prices, the profitability has improved. I don't have numbers to substantiate this but this is what one of my friends from Ceat told me.

[Kewl Batty]

Ambattur Dunlop factory to reopen

CHENNAI: The Ambattur Dunlop factory will reopen on August 31.

An agreement was reached between the management and workers at a meeting organised by the Labour Department here on Thursday.

The factory will function with less than a third of its capacity. It will be scaled up in phases, and in six months, will reach its capacity output of 138 tonnes. As many as 700 employees would return to their jobs and an additional 400 jobs were expected to be created, a release said.

The workers will get a salary hike of Rs.3000 for the next three years and will also get Rs.5000 as a one-time benefit in view of the factory commencing operations. Of this, Rs.3000 will be given on the day the factory opens and the remaining Rs.2000 will be given before December 31 this year.

[Kewl Batty]

looks like the entire auto sector in TN is at stake by CITU led strikes!
not only in chennai, coimbatore pricol, hosur ashok leyland, etc...