The problem of labour unrest is not new to the Indian automobile industry by any means and the latest casualty is the Indian unit of Sweden's Volvo Bus Corp. It is believed that the company has lost money to the tune of Rs 70 million ($1.5 million) in earnings following a work slowdown orchestrated by the local union.

It is to be mentioned here that a company spokesperson recently said that half of the 550-odd staff at Volvo Buses India Pvt Ltd's factory near Bangalore were working with a go-slow approach since April and had gone on a strike close to a week ago.

While the workers are mainly are not agreeing with the wages agreement offered by the company, the union is also demanding re-instatement of four workers who were suspended in April as a disciplinary measure.

The spokesperson said that it has been conveyed to the workers that they should not link the two issues together and the suspension case is under the policy review.

It is to be mentioned here that Volvo Buses, in which the Swedish parent holds 70 per cent, is a joint venture with Bangalore-based Azad Group.