New Delhi, June 6
The country's largest carmaker, Maruti Suzuki India Ltd (MSIL), today sacked 11 employees at its Manesar facility as its production got hit as a result of the strike by workers demanding recognition of another union.

“The services of 11 persons, who were inciting workers to go on an illegal strike and created an atmosphere where safety of people were in danger, have been terminated,” an official of MSIL said.

The workers’ strike at Manesar plant entered its second working day today with the company’s total production loss expected to touch 1,800 units.

Maruti’s Manesar plant, which has a single assembly line, manufactures 1,200 units daily on two shifts. On Saturday, a single shift production was lost, while Monday saw the production completely being halted. The company’s other plant at Gurgaon is running normal operations.

Around 600-800 workers at the plant out of the total 2,000 employees had gone on strike from Saturday on demands of a separate union and reinstatement of a few employees laid off recently, said a company official.

No production was lost on Sunday, which is a normal holiday, but over the other two working days the production loss is expected to be around 1,800 units.

According to MSIL officials, no notice of a strike was given as per the rules, so the company declared it illegal.

Officials said despite the sacking of the employees senior and mid-level company management, which includes M.M. Singh, Managing Executive Officer (Production) and Siddiqui, Managing Executive Officer for Human Resources, were in discussions with the workers over a solution. The Labour Commissioner is also involved.

The main demand of the striking workers is the formation of a separate union - Maruti Suzuki Employees Union (MSEU) - formed by those working at the Manesar plant, besides retaining contract labourers for the two upcoming new units inside the complex. At present, workers at the Manesar plant are affiliated to the Gurgaon plant union - Maruti Suzuki Kamgar Union, but are dissatisfied with it.

"The Manesar plant is completely different and issues are also separate. So we are asking for recognition of our new union. But the management has forcibly taken written undertakings from workers that they are happy with the old union," a source had claimed.

The last time the company witnessed a major strike was when workers stopped production for three months from November, 2000, to January, 2001.

MSIL is setting up two new units with an annual installed capacity of 2.5 lakh units each inside its Manesar facility at a total investment of Rs 3,625 crore. The existing plant in Manesar can produce 3.5 lakh units annually, while the three units in Gurgaon have a combined annual capacity of 8.5 lakh units.

Singapore, June 6
Global airlines cut their 2011 profit forecast by more than half to $4 billion on Monday as high oil prices and turmoil in Japan, North Africa and the Middle-East weigh on the industry's recovery.

The International Air Transport Association (IATA), which represents most global carriers, also warned of a looming trade war if Europe moves ahead with plans to force airlines to join an emissions trading scheme next year. China said it would support legal action.

Airlines say the scheme, designed to tackle growing emissions from the aviation industry, will only increase costs and add to pressures already caused by the sluggish global economy.

"The efficiency gains of the last decade and the strengthening global economic environment are balancing the high price of fuel," the IATA's director general, Giovanni Bisignani, told the group's AGM in Singapore.

"But with a dismal 0.7 per cent margin, there is little buffer left against further shocks," he said.

The IATA $4 billion profit forecast compares with an $8.6 billion forecast on March 2, just before the Japan earthquake and tsunami triggered a nuclear meltdown at a power station. Since then, the Arab uprisings have spread and oil prices have traded well above $100 a barrel.

The forecast would also mark a drop of more than three-quarters from the industry's estimated 2010 profit, which was raised to $18 billion from $16 billion.

Economists say the industry's outlook is a guide to the strength of cyclical recovery in developed markets and growth in emerging economies, which rely heavily on air transport.

IATA is forecasting a $110 per barrel average oil price in 2011, up 15 per cent from $96 last year, adding to the case for airlines to raise airfares or fuel surcharges to cover the rising cost of doing business. — Reuters

New Delhi, June 6
The Ministry of Corporate Affairs has proposed the name of former Finance Secretary Ashok Chawla as the next Chairman of the anti-trust watchdog Competition Commission of India (CCI).

The Ministry of Corporate Affairs has sent Chawla's name for ACC (Appointments Committee of Cabinet) approval, a top source in the ministry said.

Chawla retired as Finance Secretary on January 31 and was heading a committee on allocation, pricing and utilisation of natural resources till recently.

The term of incumbent Chairman Dhanendra Kumar ended on June 5.

The CCI chairman post is considered coveted as henceforth all high-value merger and acquisition deals will come under the purview of the commission CCI was established in 2003 to replace the erstwhile Monopolies and Restrictive Trade Practices Commission and Kumar was appointed as its first chairman in February, 2009. — PTI

New Delhi, June 6
The net direct tax collection during the first two months of the current fiscal fell by 47.93 per cent, mainly on account of dolling out of large refunds by the IT department.

Net direct tax collections, gross collections minus refunds, were down by 47.93 per cent at Rs 12,954 crore during the first two months of the current fiscal, the Finance Ministry said.

The net direct tax collection was Rs 24,878 crore in the April-May period of 2010-11.

However, the gross direct tax collection during April-May went up by 37.34 per cent to Rs 50,405 crore.

The decline in net direct tax collection was on account of 217 per cent increase in tax refunds at Rs 37,451 crore.

The same was Rs 11,824 crore in the April-May period of 2009-10.

The Central Board of Direct Taxes (CBDT) has provided a tax refund of Rs 11,824 crore in the April-May period of 2010-11 and Rs 73,000 crore in the entire fiscal.

"More than 40 lakh refunds had been issued in the current fiscal," the statement added. Last fiscal, the IT department had made 85 lakh refunds. — PTI

New Delhi, June 6
Despite regulatory hurdles, India continues to be among the preferred destinations for FDI due to the country's high economic growth, with both Mumbai and Delhi being touted as among the cities likely to produce the next Microsoft or Google, a survey said.

According to the '9th Annual European Attractiveness Survey' by Ernst & Young, India will rank fifth among the most attractive destinations for European firms within the next three years, mainly on account of India's perceived specialisation as a hub for low-cost outsourcing business.

"Foreign investors are not deterred by current regulatory issues to invest in India... India's perceived specialisation as a low-cost business process outsourcing (BPO) hub continues to appeal the investors across the globe," the report said.

As per the E&Y report, a huge number of respondents felt that India would be the home to the next big brand name in the IT sector.

"... Eight per cent of global respondents named Mumbai and 4 per cent named New Delhi as the best cities to produce the next 'Microsoft' or 'Google'," it said.

Around 800 executives from top-level global firms participated in the survey.

"India ranked at fifth position, with 17 per cent of respondents believing the country to be a profitable economy for expansion of business," E&Y said.

Experts have been warning againts regulatory hurdles and a slowdown in the reform process, including failure to liberalise the retail and insurance sectors further, as likely irritants in attracting FDI. Foreign Direct Investments into the country had fallen to $19.43 billion (Rs 88,520 crore) in 2010-11 as against $25.83 billion (Rs 12.31 lakh crore) in the previous fiscal, a decline of 25 per cent. — PTI

New Delhi, June 6
German car maker Volkswagen today said it will hike the prices of the diesel variant of its mid-sized sedan Vento by 2.2 per cent from July 1 as a result of increasing input costs.

The petrol variant, however, will see no increase in price, Volkswagen India said.

Currently, the diesel variant is available at a price range between Rs 7.99 lakh and Rs 9.24 lakh (ex-showroom Delhi), while the petrol version in tagged at a range of Rs 6.99 lakh to Rs 9.22 lakh (ex-showroom, Delhi).

"We have seen no relent in the input costs over several months now, which has forced us to increase the cost of the Vento," Volkswagen Group Sales India Pvt Ltd Member of Board & Director, Volkswagen Passenger Cars, Neeraj Garg said.

"On the other hand we are fully aware that customers who prefer the petrol variants are already faced with the burden of increased fuel costs and therefore we have decided to continue absorbing the additional costs for our petrol variants," he added.

The company said all customers who book the Vento diesel variant until June 30 will be able to avail the car without the price increase.

VW India further said it would offer a reduced interest rate of 6.99 per cent starting June 2011, on select variants of the Vento petrol version.