Flash Strike at Sanand Plant Pulls Tata Motors' Shares Down
Published On Feb 25, 2016
Tata Motors on Monday had suspended 26 workers at Sanand Plant, Gujarat, accusing them of damaging about 50 vehicles at the manufacturing facility. This forced more than 300 workers to go on an illegal flash strike on Tuesday resulting in four percent drop in the company's share value on Wednesday.
It all started two months ago when Tata Motors took disciplinary action on two of its workers alleging serious misconduct with higher officials. The workers then responded to these actions with an immediate strike. However, with the involvement of labour department officials and with the company's promise of a fair trial, workers called-off the strike. The enquiry report was to be submitted in one month. Delay in the enquiry process and suspension of 26 other employees triggered yet another strike in less than three months.
"Around 300 Workmen of Tata Motors' Sanand plant, have gone on an illegal flash sit-in strike on February 22, demanding re-instatement of the workmen suspended (pending enquiry) for serious misconduct," said the company's spokesperson. Adding to this, the official further highlighted the company's efforts in persuading the workmen for withdrawal of the ongoing agitation.
Besides agitating against the suspension of employees, workers at Sanand plant are also demanding for the monetary policy. Tata Motor's spokesperson has expressed that the reinstatement of suspended personnel would put other employees at threat and may also cause loses due to tampering.
On the other hand, trade pundits believe that the impact pertaining to the turmoil would cause minimal impact on stocks. On Wednesday at 15:05 hours, script of Tata Trucks recorded a down of 3.66 percent at Rs. 306.80.
The company's year-on-year profits reported a decline of two percent at Rs. 3507.5 crore, but the revenues stood at Rs. 72,256.4 crore registering a high of 2.9 percent.