New Delhi, April 15: The five-day strike at Hero Honda’s Gurgaon plant finally ended today with the management agreeing to review the demands of the agitating contract workers.

“The contract workers have called off the strike and normalcy has been restored at the Gurgaon plant. The management has assured that it will review their demands, including job regularisation and salary hike,” said a senior Hero Honda official.

He added, “We have reviewed their demands favourably and sympathetically. The long standing goodwill of the management and its HR practices prevailed upon the contract workers.”

In a statement issued today, the company said it had resumed production at the plant this morning and the plant would be operating at its full capacity in a day or two.

Devendar Pradhan, the leader of the agitating workers, said, “The management has agreed to give workers a 30 per cent raise in salary along with two days of casual leave every month. We have also been given medical benefits in accordance with the company rules.”

The Gurgaon plant, which produces around 5,800 two-wheelers a day, had been in the middle of a labour unrest since April 10. About 2,000 contract workers went on strike demanding regularisation of jobs, higher wages and medical facilities, among other benefits. Production at the plant had been completely disrupted due to the agitation.

The management of the company had several discussions with the contract employees and workers’ union members, the labour contractors and local administration to resolve the agitation.

“The contractors have agreed to address some of the genuine grievances of the contract workers,” the company statement said. However, it did not mention whether the company would directly extend the benefits to the agitating workers.

The country’s biggest motorcycle company had earlier said it might end up with production losses at its Gurgaon plant on a daily basis but confided that it would be able to make up for it by stepping up production when normalcy was restored.

Hero Honda has now decided to step up production to 6,500 units a day to cover up the losses.

At present, Hero Honda’s manufacturing facility at Gurgaon has 2,000 contract workers and 1,650 employees working in two shifts. The plant has three production lines, producing both motorcycles and scooters.

The company also claimed that the strike had no immediate effect on the availability of its products at showrooms. “There are sufficient stocks in the pipeline and with the dealers,” it said.