Hero MotoCorp To Advance Payments During COVID-19 Shutdown; No Loss Of Jobs

Hero MotoCorp has said that there will be no layoffs during the COVID-19 shutdown period at its manufacturing facilities, and steps are being taken to safeguard the health and safety of its employees.

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Hero MotoCorp has manufacturing facilities in India, Colombia and Bangladesh

Highlights

  • Hero MotoCorp has shut operations at all plants, parts centre and CIT
  • Non-production employees will handle the day-to-day operations at Hero
  • Maruti, Mahindra, Honda 2Wheelers, FCA India have also shut facilities

Hero MotoCorp will not layoff its employees during the unprecedented plant shutdown across the globe. Earlier today, the world's largest two-wheeeler maker announced that it was closing all of its manufacturing facilities across the world due to the Coronavirus pandemic. Hero has facilities in India, Colombia and Bangladesh as well as a Global Parts Centre in Neemrana, Rajasthan that will be shut with immediate effect until March 31, 2020. Hero also plans to fast-track monthly payments for contract workers to March 23, 2020, instead of waiting till the end of this month.

Also Read: Hero Announces Global Shutdown Of Manufacturing Plants Amidst Coronavirus Pandemic

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On whether employees will lose pay during this period, a Hero MotoCorp spokesperson said, "The safety and welfare of our employees have always been the top most priority at Hero MotoCorp. Basis this principle, we have halted operations at all our global manufacturing facilities – including in India, Colombia and Bangladesh - and the Global Parts Centre (GPC) at Neemrana with immediate effect until March 31, 2020. This uncertain situation is likely to have financial implications on everyone but we remain committed.  During his digital Town Hall last Friday, March 20th, our Chairman Dr Pawan Munjal has already made the commitment to ensure that jobs of our employees will remain protected."

Hero further added, "In fact, we have decided to advance monthly payments to the contract workers on Monday, March 23rd itself instead of the month end. Since the situation is very rapidly evolving, we will keep reviewing the available options and take measures as deemed appropriate at specific times, keeping in mind the overall welfare of our employees."

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Meanwhile, Hero's non-production employees have been asked to work from home and will be handling the day-to-day activities of the company. The shutdown is a result of the COVID-19 outbreak that has severely affected the auto industry. Apart from Hero, FCA Group India, Mahindra & Mahindra, Maruti Suzuki and Honda 2Wheelers India have also announced plant closures with immediate effect. The objective is to flatten the curve for the Coronavirus spreading across the country, more so as several states have announced lockdowns and imposed Section 144 to maintain social distancing.

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