Bajaj closes Akurdi plant, blames govt
Close on the heels of announcing a four-day week at its Akurdi (Pune) plant, Bajaj Auto today said it would close down the facility from September 1.
In a statement, Bajaj Auto Managing Director Rajeev Bajaj said: “The Akurdi plant closure is necessitated not for any failure on the part of the workmen or the management, but largely due to the impact of government policies on capacity rationalisation, chiefly the regional distortions created by inconsistent tax benefits, and the continuing evil of octroi in Maharashtra in contrast to the rest of the country.”
The company had declared four-day week at the plant from last Friday. The production at the 200-acre plant had declined sharply in the last two years. Besides, it was not clear whether the plant would ever regain its lost glory as the company had already created and planned large capacities in Pant Nagar in Uttarakhand and Chakan near Pune.
Upset with the company’s decision, workers’ unions had planned agitations as they saw this as a ploy to shut down the plant. The company statement said the workers would receive full wages for five days of the week and 50 per cent for the sixth day.
Allaying speculation that the company is planning a voluntary retirement scheme (VRS) for its 2000-odd workers at the plant, the company communication said there was no such plan as the company had offered VRS several times in the past.
The statement said no vehicles would be produced at this plant from September 2007 onwards though component production for supplies to other plants would continue and other corporate functions.
Close on the heels of announcing a four-day week at its Akurdi (Pune) plant, Bajaj Auto today said it would close down the facility from September 1.
In a statement, Bajaj Auto Managing Director Rajeev Bajaj said: “The Akurdi plant closure is necessitated not for any failure on the part of the workmen or the management, but largely due to the impact of government policies on capacity rationalisation, chiefly the regional distortions created by inconsistent tax benefits, and the continuing evil of octroi in Maharashtra in contrast to the rest of the country.”
The company had declared four-day week at the plant from last Friday. The production at the 200-acre plant had declined sharply in the last two years. Besides, it was not clear whether the plant would ever regain its lost glory as the company had already created and planned large capacities in Pant Nagar in Uttarakhand and Chakan near Pune.
Upset with the company’s decision, workers’ unions had planned agitations as they saw this as a ploy to shut down the plant. The company statement said the workers would receive full wages for five days of the week and 50 per cent for the sixth day.
Allaying speculation that the company is planning a voluntary retirement scheme (VRS) for its 2000-odd workers at the plant, the company communication said there was no such plan as the company had offered VRS several times in the past.
The statement said no vehicles would be produced at this plant from September 2007 onwards though component production for supplies to other plants would continue and other corporate functions.
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