Saturday, July 30 2005 16:56 Hrs (IST) - World Time -

New Delhi: Striking employees and the management of the Honda Motorcycles and Scooters India reached a deal late yesterday (July 29, 2005) night under which the company would reinstate 54 workers, including the four who were dismissed.

But the workers would have to forego their pay for the period they struck work from June 27(Wednesday), says the settlement brokered by the Haryana Government.

The company has, however, agreed to increase workers' salary subject to their 'whole hearted cooperation, proper conduct, and meeting production targets.'

While the workers were expected to resume duty from today (July 30, 2005), the company spokesman said it would go ahead with an inquiry against them and based on its findings, transfer them to any department other than manufacturing.

Also, the FIR's lodged against them would not be withdrawn.

"Law will take its own course," Haryana Chief Minister Bhupinder Singh Hooda told reporters at a press conference convened in New Delhi past midnight, in the presence of top Honda executives and workers representatives.

The trouble had started in the company when the management suspended a few employees on charges of insubordination and indiscipline.

Company insiders point out that the management was averse to the workers forming a labour union.

Things took a turn for the worse after the workers went on a strike on June 27 and became uglier on July 25 (Monday) when the employees clashed with the police, who prevented them from taking out a procession.