Automakers Renault (RENA.PA), its alliance associate Nissan Motor Co (7201.T) and Hyundai Motor Co (005380.KS) face non permanent manufacturing unit closures in India because of rising unrest amongst employees involved about rising COVID-19 circumstances.
Employees at Renault-Nissan’s automobile plant within the southern state of Tamil Nadu will go on strike on Wednesday as a result of their COVID-related security calls for haven’t been met, a union representing the employees advised the corporate in a letter on Monday.
Hyundai, in the meantime, has agreed to ship its employees on 5 days of go away beginning on Tuesday throughout which era its plant, additionally in Tamil Nadu, will stay shut, mentioned E Muthukumar, president of the Hyundai Motor India Staff Union.
The unrest highlights the challenges firms face in India amid an enormous wave of COVID-19 infections and a scarcity of vaccines which is making staff extra fearful.
Tamil Nadu is among the worst hit states with greater than 30,000 circumstances a day final week. The state, an auto hub often known as India’s Detroit, has imposed a lockdown till Could 31 however allowed some factories, together with auto crops, to proceed working.
The five-day manufacturing halt at Hyundai’s plant comes after a number of employees briefly staged a sit-in protest on Monday earlier than resuming work for the day, two union sources mentioned.
“The administration agreed to shut the plant after employees expressed considerations over security after two staff succumbed to COVID,” Muthukumar advised Reuters.
Hyundai Motor India didn’t instantly reply to a request for remark.
The strike menace on the Renault-Nissan plant got here forward of a court docket listening to on Monday over allegations from employees that social distancing norms had been being flouted and manufacturing unit well being insurance policies didn’t sufficiently tackle the danger to lives.
“Attributable to unsafe working situations and because the union calls for haven’t been met … members of this union won’t report back to work from the primary shift on Wednesday,” the union mentioned in a letter dated Could 24, reviewed by Reuters.
It mentioned employees wouldn’t return till they felt secure. The union represents about 3,500 employees on the plant.
Nissan, which owns a majority stake within the plant, declined to remark.
Renault-Nissan advised an Indian court docket final week it rejected claims that COVID-19 security protocols had been being ignored on the manufacturing unit, including it wanted to proceed manufacturing to fulfill orders. read more
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