Mahindra & Mahindra entered into a long term wage deal with Bharatiya Kamgar Sena representing the employees of Igatpuri unit at Nashik on Friday.

The deal will be valid for the next three and a half years.

The deal has been signed up by BKS' President, Suryakant Mahadik and General Secretary, Albert Pinto, amongst other union functionaries on behalf of the workmen.

But this deal doesn't have any impact on its Nashik main unit where workers have been on a tools-down strike since the last two weeks in response to suspension of their Union President Madhav Dhatrak.

The company said that Madhav was suspended for intimidating the Chief Security Officer for discharging his responsibilities.

The Igatpuri unit is a smaller plant that manufactures engines for all M&M automotive products. On the other hand, M&M's Nashik facility makes its flagship SUV Scorpio, Bolero, Xylo and Mahindra Renault's sedan Logan.

The Nashik plant has been facing a daily loss of about 500 vehicles following the alleged strike.

The company said that Nashik Industrial Court by its order dated May 13, 2009 called the 2-week long strike started by its employees at the Nashik facilty as illegal and unjustified.

The court order also asked the protesters to withdraw strike and resume work within 48 hours.