Strikes add to Coimbatore Inc's slowdown ?
The slowdown has cast its shadow in almost all industries with dipping orders and sinking profits. These circumstances are a perfect recipe for labour unrest and companies down south are facing strong opposition for various reasons.At a time when India Inc is struggling hard to counter an economic slowdown, the last thing any management wants is a all-tools-down strike. But that’s the reality, which is staring in the face of some south India based corporates.
Production at top tyre maker MRF's two major production units has been stalled since May 9 after its workers struck work, demanding recognition by the company management as the majority union. The matter has reached the courts as well...
The industrial town of Coimbatore is witnessing labour unrest with Pricol, a leading engineering products maker, fighting workers protests for more than two-and-a-half years.Besides, industrial gears maker Shanthi Gears announced a lockdown of its units after protests by CITU backed workers on Tuesday morning. The company had laid off 1,200 workers because of a drop in orders. Shanthi Gears said it had resumed operations on Wednesday. However, the unrest continues.
Ilango, president of Coimbatore District Small Industries Association, said, “Many big companies and corporates like Suzlon, L&T want to set up their units in Coimbatore. Now if these labour protests continue, many companies will shy away. Besides losing hundreds of jobs, the thousands of vendors who are dependent upon them will also be affected.”Now, with leading auto and manufacturing companies looking at a recovery in the next six months, continuing labour protests may wreak havoc to the industry that's looking at a growth.
