Ashok Leyland extends output cut at Ennore for five more days

Ashok Leyland (ALL) has decided to have more production holidays in view of the continuing slump in the auto sector. With no relief in sight, including the CV industry, at the recently concluded GST Council meet in Goa coupled with no sign of early revival in the demand, the CV major on Thursday announced 5 more non-working days at its mother plant in Ennore, Chennai.

In a communication to the employees, the company said that as the sluggishness and contraction in the commercial vehicle market continues, it has been decided to continue the corrective actions to safeguard the interest of the company. Hence, it has decided to declare September 28 & 30, October 1, 8 & 9 as non-working days.

Wages payable for the non-working days declared on September 28, October 1, 8, 9, will be decided after discussion with Ashok Leyland Employees Union (ALEU). For the non-working day on September 30, employees will be paid sixth day compensation (SDC) in September itself, the notice said.

It may be recalled that after absorbing close to two weeks at its Chennai plant in August/early September, the company had gone for production holidays at its plants including Chennai (Ennore), Hosur, Pant Nagar, Alwar, Bhandara in September. The company then said that due to continued weak demand, it has been decided to absorb production holidays across plants as well to avoid any unnecessary inventory pile up at both plants side as well at dealers network.

Except Hosur (1,2 and CPPS) for 5 days, the company has decided to go for a minimum of 10 days production cut across all other plants in September.

Ashok Leyland Limited