Around 3,000 workers resorted to “tools down” protest on Tuesday demanding revocation of suspension of two office-bearers of the employees union
The “tools down” strike at automobile maker Mahindra & Mahindra’s (M&M) plant in Nashik was called off on Thursday after the management agreed to reinstate two office-bearers of the employees union and finalize on wage hike agreement by 15th April, authorities said.
Around 3,000 workers resorted to “tools down” protest on Tuesday demanding revocation of suspension of M&M Employees Union general secretary Praveen Shinde and vice-president Amol Sonawane.
“The workers have called off the strike and will resume the duty in the evening shift following a meeting between representatives of the management and the union held at the deputy labour commissioner’s office”, deputy labour commissioner RS Jadhav and M&M general manager (HR) Anil Godbole told reporters after emerging from the meeting that lasted for more than five hours.
Mahindra produces Scorpio, Bolero and Xylo models of SUVs and Verito (sedan) at its Nashik-based manufacturing facility.
“The (Mahindra) management has agreed to revoke suspension of union office-bearers Shinde and Sonawane and consider renewal of the wage hike agreement by 15th April”, said union president Shirish Bhavsar.
Shinde and Sonawane were placed under suspension by the management allegedly for exhorting workers to stop work till their demands are met. The duo who were on hunger strike since their suspension called it off on Thursday.
“Our union has also decided against going on strike from 11th March ”, Sonawane said. According to a statement by the company earlier in the day, the stir by employees, started on 5th March, resulted in a production loss of around 500 vehicles till date. The production loss is unlikely to have any immediate impact on sales as the company already has three weeks’ stock in the pipeline, the statement said.
Moody’s said the pursuit of double-digit GDP growth three years ago “kept policy settings too loose for too long, causing the economy to overheat” and contributing to the current problems of inflation and the current account deficit
Moody’s has raised concerns against targeting double-digit GDP expansion saying any growth beyond 7% without reforms will fuel inflation that will result in “more painful” future adjustments.
“Some government policymakers, most notably RBI Governor D Subbarao, have begun pushing for a return to double-digit growth. This is wildly optimistic and, without significant structural reform, a dangerous view to take,” Moody’s Analytics, an arm of ratings agency Moody’s, said.
Subbarao had earlier this week said a growth rate of 5%-6% is not sufficient for the economy, which has the potential to grow at double digit rate provided some issues are addressed. “If we do the right things, we can get back on the track of the double digit growth,” he had said.
Moody’s said the pursuit of double-digit GDP growth three years ago “kept policy settings too loose for too long, causing the economy to overheat” and contributing to the current problems of inflation and the current account deficit.
“Policymakers should end any pretence that the economy can grow at 10% without fanning inflation—it simply cannot,” it said.
The Indian economy is estimated to grow at 5% in 2012-13 and the finance ministry expects the growth to rebound to 6.1%-6.7% in next fiscal.
“Anything above 7% (GDP growth) will lift inflation and result in a more painful future adjustment,” Moody’s said.
Moody’s in its India outlook report said the economy would grow by 6.2% in 2013, from 5.1% in 2012.
According to the report, the global environment has stabilised in recent months, with Europe muddling through and most of the US data looking better. The biggest change, however, is that the government is now on a steady path of fiscal and regulatory reform and better governance.
The so-called big bang of economic reforms announced since August has helped to lift corporate confidence and should translate into better spending and capital expenditures from mid-2013, it said.
Risks around the economy, particularly the fiscal and current account deficits, have begun to recede.
Headline inflation has moderated to 6.62% in January, after remaining close to double digit in most part of 2012. Besides, the current account deficit (CAD), which is the difference between the inflow and outflow of foreign currency, has peaked to 5.4% in July-September quarter.
The report further said gains in financial markets reflect rising expectations around the economy as well as lower risk.
Sahara group chief Subrata Roy has approached the tribunal against a SEBI direction ordering attachment of his personal assets, along with some other top officials of Sahara India Real Estate Corp and Sahara Housing Investment Corp