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Avon Bicycle Closes Two Units

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LUDHIANA, India – The Avon Bicycle Component Private Limited, located in Ludhiana, is all set to close two of its units, rendering 306 workers jobless. The closure comes after the company showed the losses sustained over the last three years in the two units – manufacturing handlebars and pedals – and obtained clearance from the state labour department.

Avon Bicycle Closes Two Units

LUDHIANA, India – The Avon Bicycle Component Private Limited, located in Ludhiana, is all set to close two of its units, rendering 306 workers jobless. The closure comes after the company showed the losses sustained over the last three years in the two units – manufacturing handlebars and pedals – and obtained clearance from the state labour department.
 
Labour unrest in the units since 2003 and hike in prices of raw material have been cited as the main reasons for the step. The company officials say the workers are to be paid a compensation, which includes retrenchment benefits and pending dues. The company will now outsource the parts from local units.
 
Heavy police force was deployed by Avon Bicycle Components including the ‘black commandos’, but no incident was reported. The company management said the workers had accepted the compensation being given to them as per the length of service in the unit.
The company is being left with the rest of four factories in which nearly 600 employees are working.
 

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