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In April last year, the plant faced a similar situation but the issue was resolved amicably
Swaraj Baggonkar & Raghu Krishnan | Mumbai/ Bengaluru
February 8, 2016 Last Updated at 00:33 IST

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This article has been modified. Please see

clarification at the end.
Tata Marcopolo, owned partially by Tata Motors, Indias
biggest commercial vehicle manufacturer, has declared a
lock-out at its bus manufacturing plant in Dharwad,
Karnataka following continued strike by workers.
Dissatisfied with the revision in wages and subsequent

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disrupt work. The company decided to shut down

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market conditions. Some dissatisfied workers had incited
fellow workers to disrupt work, causing substantial

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Tata Motors subsidiary declares lockout at Dharwad plant | Business Sta...

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financial and customer confidence loss but we continued

discussions with them in good faith; despite substantial
loss to the company, we took a lenient view of these actions when the workers resumed work,"
said a company spokesperson in an emailed response.
"However, with continued disruption, jeopardising the company's operations and reputation,"
workers resorted to an "illegal strike again on January 31. Considering these, we were
compelled to resort to a temporary suspension of operations on February 1. In view of not
improving the situation, and our apprehension of a congenial peaceful working atmosphere not
prevailing, we were forced to declare a lockout from February 6," the statement said.
The Karnataka labour commissioner has called for a meeting on Monday with trade unions and
Tata Motors Marcopolo to revoke the suspension of production at the factory, according to
sources.
This is not the first time the plant witnessed labour trouble. In April last year, the plant faced a
similar situation but the issue was resolved amicably.
Abhishek Desai, president, Tata Motors Marcopolo Workers Association, said, "We want to
resolve the crisis. If there is no production, thousands of workers would lose jobs and harm
industrialisation of the Dharwad region." The plant produces 60 buses a day for both the local
market and markets such as Sri Lanka and Bangladesh.
"We did witness a considerable drop in average production. However, the plant is equipped to
manufacture 15,000 units a year and we are confident of catering to market demands," said the
company spokesperson. Dharwad is one of the youngest plants of the Mumbai-based company
which began operations in 2009. The plant makes fully-built buses for intra-city and inter-city
transportation that include 16 to 54-seater standard and 18 to 45-seater luxury and low-floor city
buses.
Desai blames an external union - Trade Union Centre of India. The union and workers of the
plant had carried out a mass protest on January 31.
R Manasayya, president of the Trade Union Centre of India, who led a rally against the company
on Saturday, declined to comment.
When asked when the issue was expected to be resolved, the company spokesperson said,
"The company will not tolerate any coercive methods for pressurising with unreasonable
demands and indiscipline."

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Tata Motors has had peaceful labour relations at all its plants compared to other automotive
companies, like Mahindra & Mahindra and Hyundai to name a few, which have experienced
similar strikes in recent years, leading to loss in production.
Despite laying off 4,500 non-permanent employees from its truck-making plant in Jamshedpur,
during the peak of the slowdown months in 2013, according to reports then, the company did not
have to face a backlash from its workforce.

IN A NUTSHELL
Dharwad unit is one the youngest plants of Tata Motors
It began operations in 2009
Firm makes fully-built buses for intra-city and inter-city transportation

CLARIFICATION
This is an updated version. Earlier one said Tata Motors declares lockout at Dharwad plant. It is
Tata Marcopolo that has declared the lockout. We stand corrected with the update.
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