Bajaj's Akurdi Plant to be fully shut down from Sept 1

New Delhi, Aug 29 (UNI) Bajaj Auto Ltd today said its Akurdi Plant in Pune will be completely shut down from September 1, due to the impact of Government policies on capacity rationalisation which led to regional distortions in the form of tax benefits and octroi in the state of Maharashtra.

The Akurdi Plant is currently witnessing a two-day shutdown and will, from Saturday, be completely shut down and thus no vehicles will be produced at this plant from September 2007 onwards, the company said in a statement.

However, component production for supplies to other plants will continue, as will all other corporate functions, the statement said.

In the last labour settlement dated September 5, 2003, it was agreed that in the event of an acute drop in demand for the products produced at the Akurdi Plant, a five-day working week would be observed, and that for the sixth day of the shutdown workmen would receive 50 per cent of their wages.

Thus with the plant being completely shutdown from next month, all workmen will continue to receive five and a half days' wages per week for doing absolutely no work.

The management would be well within its rights to have all such workmen report to the plant, as per their normal shift timings, five days per week, the statement said.

However, for the time being, even this requirement is being waived, primarily in the interest of the convenience of the workmen, it said.

As such, all workmen will be virtually receiving their normal wages without having to leave home.

The company also said there is no Volantary Retirement Scheme (VRS) planned, adding that the management is hopeful of reaching an appropriate solution through a pragmatic and result oriented dialogue with the workers union.

UNI