Posco’s plant in the Indian state of Maharashtra have been disrupted due to local protests over labour and other issues, hampering the supply chain for automakers.
A local politician leading the protests have blocked employees and goods from entering the plant and will continue until Posco heeds to some of their requests which include giving employment to local workers, increase the wages of temporary employees and making them permanent.
Supply of steel from Posco’s Maharashtra plant has been seriously affected and production is likely to come to a standstill if the issue is not resolved soon.
The blockage is causing disruption in the supply chain and is resulting in shortage of critical auto parts and components,” the Society of Indian Automobile Manufacturers (SIAM) said in its letter .
SIAM said the disruption comes at a time when companies are still recovering from the impact of COVID-19 and this could be a major setback for the economy.Such incidents would also seriously tarnish the image of India as a preferred destination for investment,” SIAM said in its letter, a copy of which has also been sent to the central government seeking “urgent intervention”.
This is the second instance in recent weeks when a global company has faced issues in Maharashtra.In January, General Motors said Maharashtra’s move to block the U.S. automaker from shutting its plant and exiting the country defied the state’s business friendly image and sent a “concerning message” to future investors.
Chandrashekhar Khanvilkar, the local politician leading the Posco protests told that their other demands include giving preference to local companies for providing transport and canteen services and garden maintenance. They also want steel scrap from the plant to be sold to local companies.
“We are not allowing transport vehicles and workers to enter the factory. We will continue the agitation peacefully until the company agrees to at least a few of our 18 demands,” he said, adding they have been protesting since March 2.
