Nearly 400 workers at Tata Motors' plant in Sanand, Gujarat (India) went on strike yesterday (23 February) demanding the reinstatement of some suspended workers. According to a report by Business Standard, the dispute stems from an old conflict that started in November 2015 when a group of workers demanded a pay increase in the wake of employee state insurance (ESI) deductions. Following an enquiry, the company suspended two workers for agitation even though the automaker agreed in principle to increase pay. The situation worsened when the remaining workers protested, demanding the reinstatement of the suspended employees. The company took action against 26 further workers on Monday (22 February) on charges of inciting other workers and damaging property. Government officials at the state level are working with workers and the company management to end the deadlock.
Significance: The Sanand plant, which employs nearly 2,500 people, primarily produces the Nano small car and is expected to start output of the Indigo CS this year, according to IHS Automotive production estimates. The plant will also be the production base for the soon-to-be-launched Tiago hatchback. As a result, the industrial action at the plant is cause for concern for the automaker. Tata has traditionally enjoyed cordial relations with its workers but has witnessed a deterioration in the recent past. Earlier this month, workers staged a protest at Tata Motors' bus plant in Dharwad.
