The Jamshedpur plant of Tata Motors will shut down for three days from December 13 amid an ongoing slump in the auto sector with the company deciding to use the "block closure" to conduct routine maintenance.
An internal circular in this regard was issued by the automobile major's Jamshedpur plant head Vishal Badshah on Thursday.
During the block closure, production of heavy commercial vehicles — trucks, trailers, tippers and other multi-axle vehicles — will come to a grinding halt at the Jamshedpur plant.
The Jamshedpur plant underwent a similar block closure for three days between November 29 and December 1.
According to union sources, the fall in demand for heavy commercial vehicles which happens every year during this time of the year is said to be the reason behind the shutdown, though the notice put up at the Jamshedpur plant did not specify reasons for the same.
The circular mentioned that workers affected by block closure would avail their privilege and casual leave for 50 per cent of the day and for the remaining half will be paid their normal wages/salary by the company.
Telco Workers’ Union sources revealed that the closure would affect around 5,500 employees at the Jamshedpur plant.
Union sources revealed that the company is likely to produce around 5,000 heavy vehicles in December.
The circular also stated that some of the workers might be called on duty for maintenance activity. Such employees would be informed separately.
As news of the block closure spread, the mood turned dismal at Adityapur industrial area, a hub of ancillary units of Tata Motors in nearby Seraikela-Kharsawan district.
Around 700 firms that manufacture components directly or indirectly for Tata Motors will be affected by the block closure.
"Almost all ancillary units will also remain closed for three days during the block closure as they would have no work," said an official of Adityapur Small Industries Association.