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Owing to workers' strike in Chennai plant, Hyundai Motor India has decided to shift the production of i20 cars to Europe. The strike at Hyundai's Sriperumbudur unit in Tamil Nadu has led to the arrest of about 750 protesters. According to reports, the workers were demanding recognition of the employee union, formed in 2007. They also demanded re-instatement of dismissed employees, hiking basic wages and reducing the performance-linked pay component in employee salaries.
According to Rajiv Mitra of Hyundai Motor India, the company will not be able to meet the production target under these circumstances and hence some production will be moved to Hyundai's facilities in Europe. Originally, Hyundai planned to produce 120,000 units of i20s cars at its Chennai plant but the workers' strike has forced the company to shed the plan.
At present, the company is reluctant to comment anything on the worker's strike in Chennai plant. The Chennai unit employs nearly 10,000 people. Now with shift of production to Europe, a large number of workers are expected to suffer the brunt of unemployment in this crucial phase of recession. Last year, country’s largest automaker Tata Motors had to relocate its Nano plant that led to massive losses.
