Dispelling fears of lay-offs due to production cut at its manufacturing units, Hinduja flagship

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company Ashok Leyland on Tuesday said

it will pay its workers full salary during three-day a week work period till December.

"The Employee Union has agreed for an arrangement by which for the non-working days, the employees will receive their full salaries so that their income is not affected," a company said in an e-mailed reply.

Half the number of non-working days will be treated as special leave, it added.

"The remaining number of days will be banked and when the market revives, employees will make up for the equivalent production loss," it said.

Last week the company had announced that its manufacturing units would function three days a week till December.

"Taking into account the inventory in pipeline and the suppressed market demand, Ashok Leyland has decided to moderate the production plan for the next two months," the statement said.

During the last few weeks, medium & heavy duty commercial vehicles market has been facing problems of inadequate funding and high interest costs. Consequently, market demand has come down, it added.

"This decision has also been partially influenced by the problems encountered by the suppliers as a result of power shortage in some parts of the country," it said.