Royal Enfield expects to resume regular production after settlement with employees

Royal Enfield Tuesday said it expects to reach regular production levels at its manufacturing unit here as the company was holding discussions with striking employees "to amicably resolve all concerns raised by them." 

The employees of the plant at Oragadam, about 45 km from here, Monday resumed their agitation, a day after deciding to end their over week-long strike following a settlement, accusing the management of placing unacceptable conditions. 

They had reached an 'amicable' settlement with the management Saturday on their demands, including wage revision and bonus and decided to call off the strike launched on September 24. 

Union sources had claimed that nearly 4,000 employees out of the workforce of 6,000 were participating in the strike. 

Royal Enfield, in a filing to the stock exchanges Tuesday, said the manufacturing facility at Oragadam has been operational since September 29 "after part of the workforce did not report for duty since September 24." 

"We expect to reach regular levels of production in a phased manner", the company said. The company's other facility at nearby Vallam Vadagal continues to operate and deliver to full capacity, it said. 

Royal Enfield clarified that it did not terminate the employees in the wake of recent developments at the facility and that the salary revisions were being done 'annually'. 

"The last annual salary revision was done in April 2018 and the next revision is due in April 2019", it said. The company said it was in dialogue with the plant-based forums to amicably resolve all the concerns raised by them. 

"Royal Enfield has always been deeply committed to maintaining and furthering cordial relations with its staff and workforce to understand and fulfil their aspirations and we will continue to do so", it said. 

Stating that the Oragadam facility has been a positive example of progressive human resource practices, the company said it has an internal mechanism to facilitate collaborating working with leadership to address matters related to the well-being of the workforce. 

In a separate notification Monday, the company said there was a loss in production of 10,000 motorcycles in September 2018 as a section of employees did not report for work.

(With inputs from agencies.)