Ashok Leyland goes for more output cuts at Ennore plant

Hinduja group flagship Ashok Leyland has announced more production holidays at its Ennore plant (the mother plant) in Chennai.

After absorbing August 16 & 17 as non-working days (production holidays), the company has on Friday informed the employees that August 24 (Saturday), August 27 and August 30 as non-working days and August 26 will be a 6th day non-working day.

In its notice to employees, the company said that due to continuing sluggishness and contraction in the commercial vehicle market and the need to continue the corrective actions to safeguard the interest of the company, it has been decided to declare August 24, 27, 30 as non-working days and August 26 as the 6th day non-working day.

The notice further said that wages payable for the above non-working days will be decided after consulting with the Ashok Leyland Employees Union (ALEU). For the non-working 6th day of August 26, employees will be paid sixth day compensation (SDC) in August itself, the notice added. Employees, however, attached to essential services who are required to work will be separately intimated by the department heads.

A senior workers’ union official confirmed the developments, but said that they are clueless on the company’s notice. “We want the company to pay us the full working day salary on those non-working days.”

On the union’s demand on bonus, the official said, the company is yet to come forward to discuss with their demand. “Our union leader has sought time to discuss with the top management, but yet to receive response from the company,” he added.

Earlier, the company had absorbed non-working holidays on August 16 & 19, 2019 at its Ennore plant. Then the workers’ union objected to the sudden developments as it was not taken into consideration before announcing non-working days.

The workers had also gone for a sit-in-dharna, objecting to the company’s adamant attitude on the bonus demand raised by the workers.

The union seeks at least 7%, however, the management is adamant in sticking to 5.5%, the union official said. “We are waiting for a positive response from the management on this issue,” he added.

According to the union official, the Ennore plant works under two shifts (in emergency 3 shifts) and there are 1,800 workers. The plant produces 112 engines and 116 chassis a day.