7/23/2019 Labour Unrest

http://slidepdf.com/reader/full/labour-unrest 1/2

Labour Unrest Efect on Hero’s Shares

Labour is an important factor of production and a labour unrest leads to the

slowdown in the production of a company.

Due to slowdown in the production the shareholders expect a decrease in the future

earnings (in form of dividends etc). This leads them to sell the shares of thecompany as the opportunity cost of holding the shares becomes high – they can

invest their money in better stocks or others asset classes. This leads to a drop in

the companys shares.

!or "ero #oto $orp there was a labour unrest during %uly&'ugust *+,. This led to a

fall in its shares during 'ugust despite a declaration of dividend. -n eptember the

problems were resolved and strong sales of two&wheelers were recorded boosting

the share prices.

imilar trend was seen when there was labour unrest at the same /urgaon plant as

the workers were demanding 0s +1***&+2*** while the company was willing to

give only 0s 3*** of wage increase.

7/23/2019 Labour Unrest

http://slidepdf.com/reader/full/labour-unrest 2/2

imilar trend was seen during the labour unrest in 'pril **4. The contractual

labours were demanding regularisation. The trough pointed by the arrow occurred

when the labour force went on strike. 5y end of 'pril the issue was resolved

tripartite between government labour force and management.