Labor unrest and ongoing disputes is affecting Bajaj badly. Though the company claims that they have not faced any production issues yet, but it is going to affect future launches for sure. This present condition is further aggravated by the fact that Honda is teasing Bajaj and knocking at the second place for some time now.
In fact, for the figures released for the last month, Honda piped Bajaj for the second spot (Read More). In a clear indication that the company does not want to drag the case further, Rajiv Bajaj has given a week to his management team to resolve the labor issue according to Economic Times. If the deadline is not met, Bajaj will be forced to move half of the production away from Chakan to Aurangabad and Pantnagar on a semi-permanent basis. This would involve equipment and workers shifting along with realignment of vendor supplies.
Currently, Chakan is operating at two-third of its capacity and Aurangabad is taking care of the rest of the company’s production. According to a top Bajaj official, talks with labor union are on and majority of the bigger disputes have been resolved at a higher level. However, it is the reinstatement of all the 22 suspended workers that has been a point of tussle between the management and the union.
We hope things get sorted out between the company and the labor union and customers do not get impacted by any delay that may arise in continual or in shifting of plants. Bajaj has 4-5 new Discover motorcycles as well as two new Pulsars in pipeline.