NEW DELHI, July 29:
Contract labourers working in factories of component suppliers to Maruti Suzuki could bear the brunt of the lockout at the Manesar plant of India’s largest carmaker.
Working on wafer thin margins amid stiff competition, many of the component suppliers which have been already feeling the heat due to an overall slowdown in the automotive market, are considering to reduce their workforce.
“If there is prolonged lockout at Maruti’s Manesar plant, there is no doubt that there would be lay-offs of contract workers in the ancillaries,” said a senior official with an auto component maker, who asked not to be identified.
Describing the situation as unfortunate, the official said it has come at a time when the automobile market is struggling with sluggish demand.
“Whenever there is a ramp up in production of automobiles, there is a proportional increase in the rate of employment of contract labourers in many of the component suppliers. When the production is down, it goes down,” said the official. (PTI)
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