PANJIM: The workers union at Automobile Corporation of Goa Limited (ACGL) at Goa has called for a 5-day strike which began on October 18.
The ACGL is a company promoted by Tata Motors along with EDC Goa and has 2,000 people directly or indirectly dependent on it in the State. The company is facing a tough business situation due to multiple challenges including the impact of the COVID-19 pandemic resulting in subdued market condition, rising commodity prices and high logistics cost.
If you enjoyed reading this article, you can help support our journalism by adding OHeraldo as a preferred source.
The company’s Bus Division in Goa posted a loss of around Rs 23 crore in FY20-21 and losses continue to increase in Q1 of FY21-22 due to substantial reduction of orders as mass transport is severely hit by the ongoing pandemic.
Sources in the ACGL management informed Herald that for long term sustenance, the company is demanding productivity linked long term settlement from the workers’ union as in the last settlement a high wage rise was given based on commitment of productivity. However, according to the sources, the actual productivity has continued to remain around 25 per cent of the commitment. This has resulted in severe cost overhead making the factory non-viable in the bus body markets, whereas the union is again demanding high fixed pay rise without any commitment on productivity.
“It is very unfortunate that when other companies are struggling in the current pandemic situation, such acts of the union may have serious detrimental impact on the survival of the company which is a major source of employment in Honda Sattari region and this may affect about 2,000 direct and indirect employees of company and its vendors,” added a senior officer in the ACGL management.
President of the Union Gunaji Parab when asked whether this strike would continue even after five days, he said, “The strike will continue till it is settled. It is just a token strike for five days and if there is no settlement then it will be increased to 10 days and then 15 days and then indefinitely. Neither the management nor the Labour Commissioner is listening to our grievances.”
