LML locks out plant

NEW DELHI: A few months after labour trouble forced the Honda Motorcycle & Scooter India (HMSI) plant in Gurgaon to shut down, another two-wheeler maker is faced with a similar situation.

LML Ltd, which makes scooters and motorcycles at its Kanpur site, has declared a lockout beginning this morning, citing labour unrest and illegal strike by workmen.

When DNA Money contacted LML officials at the factory, they said that the strike was called after the management failed to pay employees full wages for January due to the ongoing financial restructuring.

They said production has been suspended for over a month now, having progressively dwindled over the last few months (from 40,000 vehicles rolling out earlier to just about 10,000 vehicles per month now).

According to these officials, there are about 3,000 workers at the Kanpur site. LML declined to comment on the lockout.

But in a notice to the stock exchanges earlier on Tuesday, LML said, “Some workmen instigated by external rowdy elements had been resorting to actions disrupting the peaceful atmosphere and working of the factory and have resorted to illegal strike. Due to illegal strike by the workmen, the company has declared a lockout with effect from March 7, 2006.”

LML has been in the red for close to four years, with accumulated losses pegged at about Rs 200 crore.

On skid row: LML has been in the red for close to four years, with accumulated losses pegged at about Rs 200 crore.

Production has been suspended for over a month now, having progressively dwindled over the last few months