South Korean steelmaker Posco plant in Maharashtra India is seeing disruptions because of labor protests. The protests have blocked both employees and materials. Protesters claim that they will continue until their demands are met, including employment for local workers first, wage increases for temporary workers, and changing the status of temporary workers to permanent workers.
In the meantime, steel supply from the plant is a serious concern for such carmakers as India’s Maruti Suzuki, India’s top carmaker by sales, Hyundai Motor, Kia Motors, Tata Motors, and Mahindra & Mahindra, that source steel from the Posco location.
The disruption is affecting the supply chain with shortages in critical auto parts and components. Although the disruptions were reported by Reuters, the companies are not yet commenting.
Local politician Chandrashekhar Khanvilkar, who is leading the protests informed Reuters that additional demands include preference to local companies for providing transport, canteen services, and garden maintenance, as well as selling steel scrap from the plant to local companies.
