Public RelationsFrequent strikes might make Pricol move out of Coimbatore
Leading auto component manufacturer Pricol has said it may be forced to move production units out of the district due to frequent strikes and "non-cooperative" attitude of some workers for the last two years,substantially bringing down its profit margin.
- Redundancy cover for hesitant car buyers in UAE - NEWSALERT: Audi India records 165% growth in June - Bajaj bets on new bike to up sales - Auto sector turnover crosses Rs 2 lakh cr; employs 10 mn - Ratan Tata launches JLR showroom in Mumbai - M&M automotive sales grow 18.72% in June
The labour problem, started by a union, "following the ideologies of CPI-ML", in 2007 had had a severe impact on the company"s performance for the last two years, Vanitha Mohan, Executive Director, Pricol told reporters here last night.
With a 15 to 20 per cent year-on-year growth, Pricol should have reached Rs 800 crore turnover last fiscal. But the strike has dented turnover to just Rs 614 crore in 2008-09, she explained.
The union had gone on strike for three months in 2007 and again from June 15 to 29 last, demanding that only permanent workers be involved in direct production activities, she added.
The strikes and non-cooperative attitude of the workers have resulted in Pricol losing out on customer confidence,she said, adding that the company wanted to find an amicable solution to the problem at the earliest.
The management was ready to talk directly to employees without the involvement of their Chennai-based leader and find solutions to their genuine demands, Vikram Mohan, Director of the company said.