Industrial Relations Project

Chapter1.
0: INTRODUCTION AND OVERVIEW
1.1 Introduction: Company
Maruti Suzuki India Limited is a partial subsidiary of Suzuki Motor Corporation of Japan. It is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans D Zire, SX4 and Sports Utility vehicle Grand Vitara. Its manufacturing facilities are located at two facilities Gurgaon and Manesar. Maruti Suzukis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. The company's headquarter is located in New Delhi. Industrial relations Since its founding in 1983, Maruti Udyog Limited experienced few problems with its labour force. The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process. In 1997, there was a change in ownership, and Maruti became predominantly government controlled. Shortly thereafter, conflict between the United Front Government and Suzuki started. Labour unrest started under management of Indian central
Impact of Industrial Relation issues on production Compiled by: Remya Mohan,Scholar MBA- 4th sem,ABS,Noida Page 1
government. In 2000, a major industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among other things, major revisions to their wages, incentives and pensions. Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel, after elections and a new central government led by NDA alliance, India pursued a disinvestments policy. Along with many other government owned companies, the new administration proposed to sell part of its stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidised by the Government, and the union has better protection while the company remains in control of the government. The standoff between the union and the management continued through 2001. The management refused union demands citing increased competition and lower margins. The central government prevailed and privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited. Vision and Core Values Customer Obsession Fast, Flexible & First Mover Innovation & Creativity Networking & Partnership Openness & Learning
Managing Director
Mr. Shinzo Nakanishi 1.2 Research Question The research addresses a research question which is as follows:
1) Industrial relation issues in Marutis production department and also effect on vendor
relationship during and after strike. 1.3 Research Objectives The objective is to visit Maruti Employees and vendors associated with Maruti for understanding the industrial relations issues that was faced by them during and after the strike that took place in Manesar Plant. 1.4 Scope of the study The study covers 20 employees and 10 vendors of Maruti. The employees and vendors will be interviewed through survey questionnaire to find out the impact of industrial relation issues and the repercussions.
1.5 Benefits of study

This study enables the researcher to understand how to tackle various problems related to Industrial relations and how to overcome the issues so as not to be repeated again. 1.6 Limitations of study Not having enough time the sample size selected for the research was limited to 20 employees and 10 vendors of Maruti. The perception and interpretation of the data may not be 100% free from errors as it also involves opinion based data from respondents.
Chapter 2.0 Review of Related Literature

2.1 a) Industry Analysis and Overview literature.
Labour strikes in automobile industry in India Rico Auto Industries Ltd.: In 2009, several workers from the Indian auto industry went on a strike after a worker at Rico, an Indian maker of gear and brake parts, died during a protest staged by workers against management. The worker was beaten to death by people believed to be associated with Rico. Pricol Ltd.: In September 2009, angry workers killed Roy George, the human resources head of the instrument panel maker, for freezing their salaries. Management and workers had been at loggerheads for the previous two years. Police arrested 50 suspects. Honda Motor Co.: In September 2009, workers tried to prevent trial runs of a new assembly line by threatening company officials with shock absorbers and motorcycle parts. In a separate incident in 2005, company workers clashed with police. Workers reportedly wanted management to bring back suspended workers. Honda Motor Co. said some of the protesters were not company workers. Graziano Trasmissioni India Pvt. Ltd: In September 2008, nearly 200 workers killed Kishore Chaudhary, the chief executive of Graziano Trasmissioni India Pvt. Ltd., a manufacturing unit of Swiss high-tech group OC Oerlikon Corp. Hyundai Motor Co.: The Indian unit of the South Korean automaker had to stop production at its Chennai plant after nearly 150 workers staged a protest to bring back 67 of 87 workers who were sacked by the company in December 2009.
Some attribute the clashes to what may be companies insensitivity in dealing with their workers. I think the industries are rising and are unable to foresee what is happening at the human level, said clinical psychologist Aruna Broota. But others see a loosely-organized, sometimes thuggish union movement as the chief culprit. The union functions in an ad hoc manner, said Ritu Tripathi, assistant professor at the Indian Institute of Management in Bangalore.
Honda Siel faces labour unrest

TNN Jul 26, 2003, 12.05pm IST NEW DELHI: Honda's Indian arm Honda Siel Cars India is facing an industrial unrest with its 400-strong workers at Surajpur plant (Greater Noida) are demanding a wage hike and threatening to strike work from Monday. The workers, sources said, have already decided against working overtime and are observing a go-slow, which has forced engineers and officers from Honda's Indian production team to double up at the shop floor for rolling out cars. Worker have given the management time till Saturday to meet their demands, failing which they may resort to a strike. ''Production is already down by around 30-40 per cent despite the managers and officers pitching in,''the sources added. However, company AGM Neeraj Garg said, ''There are no problems with the production.'' Sources further said workers were resorting to several tactics to get their demand met. ''Cars are being scratched and dented at the shop floor. In some cases, nuts and bolts were not fixed properly. The quality control team is working overtime now to properly check each and every car that is being rolled out to ensure that no defective model slips through,'' they said. This unrest comes at a time when Honda is trying to up its market share in India. The firm, which posted a pretax profit of Rs 50 crore in the 2002-03 fiscal, is in the process of launching its imported SUV
CR-V and the new-look Accord. Besides, it has also lined up a new-look City for launch in September this year. This is the second auto multinational based in Greater Noida to face labour issues at its plant. Recently, around workers of the Daewoo Motor had resorted to violence.
Gurgaon - Manesar belt no stranger to labour unrest

PTI Oct 21, 2009, 01.54pm IST NEW DELHI: History keeps repeating in the Gurgaon - Manesar industrial belt, one of the country's largest auto hubs, which once again witnessed labour unrest following the death of a young worker at Rico Auto on Sunday. The death of 26-year-old Ajit Yadav, a worker at auto component manufacturer Rico Auto, is not the first instance of fatalities in labour unrest in Haryana's industrial hub. The memories of violence of July 25, 2005, when over 150 people were injured in a clash between police and agitating workers of Honda Motorcycle and Scooter India, still haunts the belt that aspires to be a global auto hub. Unfortunately for the Haryana, the history of labour unrest goes beyond 2005 and has not even spared India's largest car maker Maruti Suzuki India (then Maruti Udyog Ltd) that witnessed a three-month strike by workers in 2000. If it is component maker Rico Auto Industries now, which is in the midst of a storm following the death of a worker last Sunday, in the past even Maruti had to deal with deaths of workers, albeit in different circumstances, during the workers' stir.
Trouble broke out in Maruti when around 150 employees were retrenched and another 2,200 were forced to opt for voluntary retirement in 2000. The focus, however, shifted when one of the workers was found dead under mysterious circumstances near the company's plant and another died in a nearby hospital when rushed from factory.
2.1 b) Background Labour unrest at Maruti A s M a r u t i s s a l a r y s t r u c t u r e comparatively higher than most manufacturing companies, due to this competition a n d d e c l i n e i n p r o f i t , t h e c o m p a n y c o u l d n o t l i v e u p t o t h e e x p e c t a t i o n s o f t h e employees. As a result worker unrest started to grow in the company. In September 2000 the Maruti Udyog Employees Union went on an indefinite strike if their demands were not met. The employees were demanding a new incentive scheme, improved pension scheme, better work
environment and filling up of supervisory vacancies. However the m a n a g e m e n t r e f u s e d t o a c c e d e t o t h e s e demands.

Production fell by around 40 % for a period of 3 months. During this period the engineers at the managerial positions manned the assembly lines to ensure that production does not stop completely. The top management of Maruti were under some pressure to negotiate with the workers. However, the government decided not t o interfere directly and the management insisted that the workers stop the agitation and agree to adhere to the code of conduct specified by them. The strike ended in January 2001 with the union members agreeing to by the code of conduct. About half of the employees (40) suspended/terminated during the c o u r s e o f t h e a g i t a t i o n w e r e n o t t a k e n b a c k o n d u t y . T h u s t h e m a n a g e m e n t retained the upper hand after the strike ended and the work culture at Maruti changed significantly after this. Some of the changes which took place were as follows: 1. The sense of job security that the workers enjoyed at Maruti diminished. In s u b s e q u e n t ye a r s a n u m b e r o f n o n - p e r f o r m e r s w e r e a s k e d t o o p t f o r a voluntary Retirement (VRS) and by introducing VRS, 1251 jobs were reduced. 2.De-recognized Maruti Udyog Employees Union (MUEU) by
d i s m i s s i n g t h e union members and the MUEU was not allowed to conduct a single general b o d y m e e t i n g a f t e r t h e l o c k o u t a n d r e c o g n i z e d n e w u n i o n called Maruti Kamgar Union and it was set up in December 2000 with 28 members. 3. The company started relying more on casual (contractual) labour to decrease its costs.
4. The proportion of variable performance based pay out of the total increased significantly.
The major reasons behind labour unrest:
I n t h e l a t e 9 0 s , M a r u t i h a d b e g u n t o f e e l t h e e f f e c t s o f competition in automobile industry and this can be attributed as one of the reason for attack on the workers.
With the change in management in mid- 1990s, when it became predominantly Government controlled for a while, and the conflict between the Government and Suzuki may have been the cause of unrest among employees.
When Management-Union talks broke down in September 2000, the workers start agitation: black badges to start with, and later, hunger strikes, tool down strikes etc.
The management introduced a scheme, where incentives paid would be dependent upon the sales of the company both of cars and spare parts, which are not accepted by the union because productivity incentive could not be connected with car sales since that were not something the workers could determine.
Introduction
of SCANLON
type
incentive
scheme.
The
union
d e m a n d e d reinstatement of the original incentive scheme which had been in place prior to 1995, according to which 65% of all savings in labour-cost above the norm set (at 41.5 cars per worker per year) was to be distributed to workers as an incentive bonus. Death of three persons in October 2000.
Mandatory requirement of signing a good conduct undertaking.
Gurgaon: Maruti Suzuki Workers Strike

Maruti Suzuki to Lift the Lock-out at Manesar plant With Safety & Security of Employees Assured
New Delhi, August 16th, 2012: Maruti Suzuki India Limited today announced that the lock-out at its Manesar facility will be lifted on 21 Aug 2012.
Safety & Security Measures The Company had declared a lock-out at the Manesar plant on 21 July 2012 following large scale violence by workmen on 18th July 2012. In the violence a General Manager, Mr. Awanish Kumar Dev, was burnt to death inside the plant facilities and 96 Supervisors and Managers were injured / hospitalized. The Company had stated that it could only start production when the safety and security of its managers, supervisors and workers could be ensured. The police has arrested a number of workers, including the 12 Union leaders, and started legal processes to bring the guilty to book. More arrests may follow the police investigations, which are
continuing. The Company will work closely with the Government to ensure that those guilty of causing the death of Mr. Awanish Dev and of perpetrating violence are brought to book. The State government has decided to take a number of steps to enhance the security of MSIL employees. These include: 1) Setting up a Rapid Action Force of 500 police personnel headed by a senior police officer near the Manesar area. In each shift 100 of them will be in the Maruti Suzuki Manesar factory. 2) 40 Personal Security Officers (PSOs) have been provided for the safety of managers, supervisors, and where necessary the workers. 3) Security arrangements have been made at the residences of the employees. MSIL has created a special force of 100 security guards, including ex-servicemen, at its Manesar Plant in addition to the existing security force, to enhance security. We believe that these measures, and the continuing efforts of the Haryana government and its police force, to investigate, arrest and prosecute the criminals involved in the violence on 18th July, will create a safe environment for work to resume. Maruti Suzuki is grateful to the local community for their consistent support and expects that local leaders will play a very important part in the creation and maintenance of a safe working environment. Manpower Maruti Suzuki is grateful to the local community for their consistent support and expects that local leaders will play a very important part in the creation and maintenance of a safe working environment. Based on internal investigations, the Company has identified those workers who were involved in the violence and in whom the Company has lost confidence. The Company has taken note of the fact that only a few months back, following a mutually agreed Settlement, these workers had signed a good conduct undertaking. These workers will not be taken back. This list of workers
includes the persons arrested by the police and who are likely to face criminal proceedings, and are also in our list. If in the course of our enquiries or police investigations, it appears that more workers were involved in the violence, action will be taken against them as and when required. In accordance with the declared policy to not employ contract workers provided by contractors, on the direct production line, the Company has started the process of directly hiring them. The schedule of recruitment has been communicated to all the existing contract workers through the contract agencies and recruitment would start from September 2, 2012. Re-start of Production The re-start of Production at the Manesar Plant would be gradual and will be taken up in phases. Maruti Suzuki statement on Manesar
Maruti Suzuki statement on Manesar

Manesar, July 19th, 2012: We are deeply disturbed by the mob violence and arson at our Manesar Plant on Wednesday evening. Several executives, managers and supervisors were brutally attacked and injured, and nearly 100 of them had to be hospitalised. We have also lost Awanish Kumar Dev, General Manager (HR) at Manesar Plant, who was burnt to death by the mob. Awanish was an outstanding professional and team member, compassionate, soft spoken and deeply committed to cordial industrial relations. In the past year, he had been instrumental in the Company taking far-reaching steps to enhance the well being and working conditions of workers at the Manesar Plant. We are still assessing the total damage to property and facilities from the acts of arson. What is clear is that the office facilities have been burnt beyond repair, as have the main gate, security office and the fire safety section. Both our plants in the Manesar campus were, of course, closed on Thursday. We will shortly
announce our decision on the next steps with regard to resuming operations in these facilities. We request our customers and partners to bear with us in this extraordinary situation. The top management team visited the injured colleagues in the hospitals in Gurgaon where they are admitted. Their experiences are shocking. A few of our colleagues remain serious. While the rest are recovering from the physical injuries, it will take them a while to come out of the trauma. The injured include two Japanese expatriates, including the plant manager of the Manesar Plant. Sequence of the violence The workers union was demanding reinstatement of a worker who had been suspended for beating up a supervisor. While negotiations were on with the senior management, the first act of violence by the mob was to forcibly shut the main gate and prevent managers from leaving the premises after working hours. Thereafter, armed with iron rods and door beams of cars, the mob spread out in groups in the factory area and targeted supervisors, managers and executives. In simultaneous attacks in different parts of the factory, the mob beat the managers on their head, legs and back, rendering many of their victims bleeding and unconscious. They also ransacked offices, broke glass panes and wantonly damaged property. Finally, they set the offices on fire. After being terrorized, abused and attacked in this manner by the mob, recovery for the injured will not be easy. We will ensure they continue to receive quality medical attention, and are extending whatever support is possible to the families as well. By any account, this is not an industrial relations problem in the nature of management-worker differences over issues of wages or working conditions. Rather, it is an orchestrated act of mob violence at a time when operations had been normal over the past many months. Such acts of violence - pre planned, unprovoked and gruesome - have implications beyond one company or region. They are negative trigger for existing companies and regions across the country, as also for prospective investors and job seekers. We are extending full cooperation to the police and government authorities in identifying the guilty and taking suitable action.
Maruti Suzuki declares lock out at Manesar Plant

New Delhi, July 21st, 2012: Maruti Suzuki Manesar facility was rocked by labour violence on July 18, 2012. A General Manager, Awanish Kumar Dev, was burnt to death by the mob of workers inside the plant facilities. Nearly a hundred managers and supervisors sustained serious and critical injuries and had to be hospitalised. The mobs also set fire to the office wing and the main gate. The managements most important concern at this time is the safety and security of its supervisory and management personnel. The management firmly believes that unless the causes are identified and appropriate corrective action is in place it would be unsafe for supervisors and managers to resume work. Following the incidents of violence and arson at the Manesar facility, the Management believes that if employees are asked to report for work at the facility, their lives will be endangered. With this strong concern on the safety and security of the personnel, Maruti Suzuki today issued a notice declaring a lock-out at the Companys Manesar plant facility. The Company wants to ensure that the injured continue to receive quality medical care and recover from the mental trauma caused by the violence. About 30 managers and executives are currently admitted in hospitals in Gurgaon. Even among those discharged from hospital, many are going through trauma owing to the terror and abuse accompanying the attacks. The families of these victims remain disturbed. The Companys other facilities, including the operations in Gurgaon, will continue to function normally.
Manesar plant lockout may cost Maruti 20% decline in profit

NEW DELHI: Maruti Suzuki faces a 15 per cent-20 per cent dent in profit due to missed production at its shuttered Manesar plant, portending more trouble for the country's biggest carmaker whose profits slumped for the fourth straight quarter last month.
Analysts say this estimate is based on the output loss in the fortnight since the lockout. The losses due to damage to Maruti's assembly line, paint shop and other facilities at its key Haryana plant are pegged at 525 crore. Maruti, 54.2 per cent owned by Japan's Suzuki Motor, shut its Manesar unit last month after disgruntled workers rampaged through the plant following a disciplinary incident. A manager was killed and several executives were injured in the violence. The lockout at the Manesar plant, which produces the high-profit Swift hatchback and DZire sedan, is resulting in a daily production loss of 1,200-1,400 cars, or Rs 75 crore, the carmaker said last month. "We expected the output losses to have a direct impact on the company's profitability," said Mahantesh Sabarad, senior vice-president of equity research at Fortune Financial Services. "Even a two-week closure at the Manesar plant could impact its profits margins in the range of 2 per cent for the quarter. Higher costs coming from rising security and manpower expenditure will have an added impact," Sabarad added. Maruti, however, said it is yet to work out the financial implication of the problem at its Manesar plant. "We are still assessing the total damage to property and facilities from the acts of arson," a spokesperson for the company said. Another analyst seconded the warning on profit. "Maruti may struggle to reach last year's sales of a million units in the domestic market," said Abdul Majeed, partner auto practice at PricewaterhouseCoopers. "Going by the reports, the initial impression is that it could see single-digit decline in sales on the back of uncertain production, at least in the months of July and August," Majeed added.
The comments follow Maruti's announcement last week that first-quarter profit had dipped 23 per cent. The company is already under pressure to dole out higher discounts as sales of its petrol models have stagnated. Maruti has been plagued by labour unrest at its Manesar plant for over a year now. A series of workers' strikes last year at the plant led to a production loss of 83,000 cars, or Rs 2,500 crore in revenue loss. IHS Global Insight, a consultancy, said a month-long lockout could mean a production loss of 40,000 to 60,000 units, or over Rs 2,000 crore in revenue.The consultancy said that despite strong brand equity, the unrest at Maruti could see customers switching loyalty. "Maruti will gain from its strong brand equity, but still 40 per cent of customers are expected to shift loyalties and buy other cars," said Deepesh Rathore, IHS Global's managing director for India. He said Ford, Volkswagen, Toyota and Nissan are expected to cash in on Maruti's woes, but the carmaker will not suffer any major loss in market share, as its popular Swift and DZire models are likely to shore up sales once production restarts at Manesar. The combined order backlog for popular Swift hatchback and DZire sedan is currently 125,000, Maruti's managing executive officer (marketing & sales) Mayank Pareek said. Both models are produced at the Manesar plant. Besides production loss, Maruti has witnessed a jump in manpower costs in recent years. In the quarter to March, manpower costs rose 23 per cent to Rs 256 crore. It was up 20 per cent for the full fiscal at Rs 844 crore. As part of its effort to reduce labour unrest, the carmaker is considering having a permanent workforce, which is expected to bloat its wage bill substantially. The company employs 30
per cent-40 per cent of its workforce on contractual terms. The newer Manesar plant has a higher number at 50 per cent-55 per cent. The Manesar lockout is expected to impact parent Suzuki Motor's global earnings. "Our current forecast was fairly conservative to begin with, but whether we will need to revise will depend on the situation at Manesar," Suzuki Motor executive vice-president Toshihiro Suzuki said in Japan on Thursday. "For every day that production is suspended, the retail revenue at Maruti is reduced by about 1 billion yen," Suzuki added.
Marutis vendors to face the heat of production cuts

The lockout at Maruti Suzuki India Ltds Manesar factory has made component suppliers nervous. With no solution in sight nearly a fortnight after the lockout was declared, Marutis suppliers concede that it will affect their production schedules. This, in turn, will hit their revenue streams, cash accruals and profitability.
The worst hit will be tier-I suppliers to Maruti, especially those with greater dependence on its Manesar facility. The unit, which makes models such as the Swift, DZire, SX4 and A-star, accounts for around one-third of the car makers total production volumes. A report by rating agency Icra Ltd, which puts 14 vendors on rating watch with developing implications, explains that the overall average realization of components related to these four models is higher than those of the components that go into the models produced at Marutis Gurgaon (Haryana) plant. A parallel can be found in the period of labour unrest that disrupted about 72 days of production in 2011 and translated into a potential sales loss of 40,000 vehicles in fiscal 2012. At the time, the effect on large vendors was clearly mirrored in their profit and loss account. For instance, Jay Bharat Maruti Ltd, which is among Marutis largest component joint ventures, posted a 7.5% and an 11.5% year-on-year dip in revenue in the September and December quarters, respectively. Net profit nosedived 86% in each of these quarters. Sona Koyo Steering Systems Ltd, too, saw a contraction in revenue and profit around the period. Other listed entities affected include Lumax Industries Ltd, Subros Ltd and Halonix Ltd (formerly called Phoenix Lamps Ltd). Of course, high raw material costs and the rupee depreciation worsened the situation. Media reports indicate that this time around, the lockout and the production shutdown will hit about 600 units that are a part of Marutis supply chain, given that the company is the countrys largest car maker with a 39% market share in passenger vehicles. Worse, it coincides with sluggish growth in the business. The production cutback will hit cash accruals of vendors. With most of them working on thin margins in original equipment supplies, lower cash accruals could see component makers struggle to cover variable costs.
Even otherwise, the interest cover (the number of times the profit covers interest expense) of auto component makers with a large exposure to original equipment is relatively low. Analysts say that if the lockout is prolonged, it would hit operating leverage, too, given that most component makers had ramped up capacities in the last two years. In spite of these adversities, Maruti vendors are unlikely to switch loyalties as it remains the undisputed market leader, which guarantees strong volumes to vendors in normal times. That said, auto component firms with a diversified customer base or geographic spread would be better off. For instance, battery and tyre makers have nearly 65-70% of their revenue accruals from the replacement market, with better profit margins in that segment, too. Some, such as Motherson Sumi Systems Ltd, although a large supplier to Maruti, will see less impact on its profitability because a little over three-fourths of its revenue comes from its overseas operations.
Chapter 3.0 Research Design and methods 3.1 Research Design

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. (CR Kothari, 2009) The research design is the master plan specifying the methods and procedures for collecting and analysing the needed information. A research design encompasses the methodology and procedure employed to conduct scientific research. The design of a study defines the study type (descriptive, correlation, semi-experimental, experimental, review, meta-analytic) and sub-type (e.g.: descriptive-longitudinal case study), research question and hypotheses, independent and dependent variables, experimental design if applicable, data collection methods and a statistical analysis plan.
Different type of Research designs

Exploratory research
Exploratory research is the type of research in which the research is conducted for the problem that has not been clearly defined. This type of study is conducted for formulating a problem for more precise investigation. This method is applicable. Descriptive research
Descriptive research includes surveys and fact finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. The main characteristic of this method is that the researcher has no control over the variables, he can only report what has happened or what is happening. (C R Kothari, 2009) .This method is not applicable.
Analytical Research In this type of research the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material.
Historical Research Historical research is that which utilizes historical sources like documents, remains, etc. to study events or ideas of the past, including the philosophy of persons and groups at any remote point of time. Research can also be classified as conclusionoriented and decision-oriented. While doing conclusion oriented research, a researcher is free to pick up a problem, redesign the enquiry as he proceeds and is prepared to conceptualize as he wishes. Decision-oriented research is always for the need of a decision maker and the researcher in this case is not free to embark upon research according to his own inclination. Operations research is an example of decision oriented research since it is a scientific method of providing executive
departments with a quantitative basis for decisions regarding operations under their control. Empirical Research This research relies on experience or observation alone, often without due regard for system and theory. It is data-based research, coming up with conclusions which are capable of being verified by observation or experiment. We can also call it as experimental type of research. In such a research it is necessary to get at facts firsthand, at their source, and actively to go about doing certain things to stimulate the production of desired information. In such a research, the researcher must first provide himself with a working hypothesis or guess as to the probable results. Researcher then works to get enough facts (data) to prove or disprove his hypothesis. He then sets up experimental designs which he thinks will manipulate the persons or the materials concerned so as to bring forth the desired information. Such research is thus characterised by the experimenters control over the variables under study and his deliberate manipulation of one of them to study its effects. Empirical research is appropriate when proof is sought that certain variables affect other variables in some way. Evidence gathered through experiments or empirical studies is today considered to be the most powerful support possible for a given hypothesis.
3.2 Data Collection methods Collection of data is the most prominent part of any survey. As soon as the research question is created the data collection begins. There are two methods of collecting data i.e. Primary data and secondary data. 3.2 a) Primary data
The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. (C. R. Kothari, 2009) The following are the methods of collecting primary data Questionnaire Method A questionnaire consists of a number of questions printed or typed in a definite order on a form or set of forms.(C.R.Kothari,2009). A questionnaire is a set of systematically structured questions used by a researcher to get needed information from respondents. Questionnaires have been termed differently, including surveys, schedules, indexes/indicators, profiles, studies, opinionnaires, batteries, tests, checklists, scales, inventories, forms, inter alia. They are any written instruments that present respondents with a series of questions or statements to which they are to react either by writing out their answers or selecting from among existing answers. (Brown 6) Three types of data about a respondent may be accessed by use of questionnaire instrument. Factual questions: These include demographic information, socioeconomic status, education, etc. Behavioural questions: deals with both past and present deeds of the respondent; Attitudinal questions: comprises of world views. It covers people's opinions, attitudes, beliefs and values. Interview Method
The interview method of collecting data involves presentation of oral-verbal stimuli and reply in terms of oral-verbal responses. (C.R.Kothari , 2009) Interview is verbal questioning. In research, Lindzey Gardner has defined interview as a two-person conversation, initiated by the interviewer for the specific purpose of obtaining research-relevant information and focused by him on the content specified by the research objectives of description and explanation. The researchers in this project has surveyed through Questionnaire method as well as Interview Method. Questionnaire was designed in such a manner that could help the researcher to arrive at a conclusion that, what were the impact of industrial relation issues on production as well as the issues that vendors of Maruti Suzuki India Limited and their supply chain. 20 surveys of Employees and 10 surveys of vendors have been done through personal interview method. 3.2 b) Secondary data The secondary data, on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical process. (C.R.Kothari,2009). Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data cannot be obtained at all. The importance of secondary data cannot be ignored in a survey based research. Secondary data can be less valid but its importance is still there. Sometimes it is difficult to obtain primary data; in these cases getting information from secondary
sources is easier and possible. Sometimes primary data does not exist in such situation one has to confine the research on secondary data. Sometimes primary data is present but the respondents are not willing to reveal it in such case too secondary data can suffice: for example, if the research is on the psychology of transsexuals first it is difficult to find out transsexuals and second they may not be willing to give information you want for your research, so you can collect data from books or other published sources. Hence, this study also relies on secondary to show many other aspects of the survey. 3.3 SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. (C.R.Kothari, 2009) 3.3 a) Types of Sample design Non-probability sampling Non-probability sampling is that sampling procedure which does not afford any basis for estimating the probability that each item in the population has of being included in the sample. (C.R.Kothari, 2009) Types of Non Probability Sampling Purposive Sampling or Judgemental sampling Snowball Sampling Quota Sampling Dimensional Sampling Convenient sampling Accidental, Haphazard or Convenience Sampling
In this type of sampling the sampling units that are convenient to the researchers are contacted. The researchers have used this type of sampling method.
Chapter 4.0 : DATA ANALYSIS AND PRESENTATION
4.1 Data Analysis Data Analysis is about summarising the data collected via questionnaires into a simple format so that the research question can be answered. Analysis of data is a process of inspecting, cleaning, transforming, and modelling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domains. An analysis is given below by the researchers on the data obtained during the questionnaire survey. Each question from the questionnaire is taken and its responses are carefully tabulated, based on which a graph a prepared, supported by explanation and analysis for the same.
1. a Data analysis on survey for vendors Question1: Years you have been associated with Maruti? Less than 5 years
Years have you been associated with Maruti
5-10 years
10-15 years
15-20 years
20-25 years
Source: Survey Questionnaire
Researcher found out that most of the vendors are associated with Maruti for over 5-10 years and they all are happily associated with Maruti and are planning to continue their services
with Maruti. Hence, it can be concluded that Maruti has managed to maintain its relationship with vendors and the vendors are also ready to standby Maruti in tough times.
Question2: Do you supply to any other company automobile manufacturer?

Yes No
Do you supply to any other company automobile manufacturer Source: Survey Questionnaire
80%
20%
80% of the vendors supply to other companies also like Delphi supplies to Tata and Nissan , Amtek supplies to Ford ,Hyundai etc while Sunbeam supplies only to Maruti. In terms of revenue, Maruti vendors will not be affected too much as most of them are not dependent solely on Maruti even though business from Maruti forms a major chunk of their sales.
Question3: What were the challenges that you faced during the recent strike?
Answer3: The researcher found out that vendors faced many challenges during the recent strike like there were material hold ups and suffered loss of Rs 30 lakh daily. Some of the employees lost their job as a part of cost cutting measures.
Question4: Was there a major decrease in the supply of components with respect to quantity? If yes, provide an approximate percentage of decrease and time period (in months)?
Answer 4: Yes there was a major decrease in the supply of components with respect to quantity, almost between 50-60% there was decrease in supply. For the strike to have occurred just after the new Swift was launched. Without a doubt, it has put off many prospective buyers; people have cancelled or withdrawn their bookings, and worse, bought a car manufactured by another car maker altogether. This has hurt not just the new Swift, but Maruti as a whole. In turn the components supply by vendors also got affected.
Question5: Did you at any point of time during the stretched out strike feel that this Industrial Relations issue will drag further and revenue losses will be too high to bear?
yes To some extent No
Did you at any point of time during the stretched out strike feel that this Industrial Relations issue will drag further and revenue losses will be too high to bear? Source: Survey Questionnaire
Respondents told researcher that due to strike, inventory was rising, plants were underused and they have lost almost around Rs 1,400 crore, or 15-20% of their revenue, since the first
strike at Maruti's Manesar plant in June. They were daily in hope that the strike will come to an end but it was dragging further and at a point they thought that now loses are unbearable but the management was very supportive and helped them to cover up a part loss. Even during times of their own loss Marutis management has helped its vendors sail through the tough period.
Question6: Did you receive any kind of support from Maruti during the strike period ?
Yes Did you receive any kind of support from Maruti during the strike period No
Researcher tried to find out whether Maruti was supportive towards their vendors during the strike and where they trying to withhold their vendors and the researcher got to know that the
meetings were held by the management and they were very cooperative and told them that they will help the vendors in any manner.
Question7: Post strike has the things come under control and business back to normal?
Yes Post strike has the things come under control and business back to normal Yes to pick up Not fully No
Source : Survey Questionnaire
Post strike the things have not come under control fully, but, yes, it has been picking up recently. Since there is recession prevailing the automobile sector is highly affected with this recession and it is not only Maruti but every automobile organization is facing challenge to sell their car. Since the recent strike yes the sales graph of Maruti was affected and as it was about to come to normal production and sales, however the recession has worsened the situation.
Question 8: Any other point or comments?

The respondents did not reply to this question. 4.1. b Data analysis on survey for employees Question1: Total years of experience?
Less than 5 years 5-10 years 10-15 years 15-20 years 20-25 years more than 25 years
Total years of experience 0 Source: Survey Questionnaire
10
Most of the respondents have 15-20 years of total experience.
Question2: Years you have been employed with Maruti?

Years have you been employed with Maruti 5 Source: Survey Questionnaire
Most of the respondents are associated with Maruti for 15-20 years and they are those who have been shifted to manesar plant from main Gurgaon plant.
Question3: Was it possible that the strike could have been avoided?
Yes Not exactly No
Was it possible that the strike could have been avoided Source: Survey Questionnaire
15
From the above figure we can make out that most of the respondents said that is was possible that the strike could have been avoided.Some of the respondents mentioned that the vigilance team of manesar plant was a total failure as they could not make out that a problem was creeping in employees and also that if the proper planning was done then this strike could have been avoided. Even some of then told the researcher that the recuitment strategy was inadequate as they did not do IJP and also the HR team hired the employees from a particular belt and of same age group. They should have ideally mixed up the employees who have experience and are trained to work in extreme conditions.
Question4: What was the effect of strike on production process? Answer4: Researcher found out that as a part of strike there were certain effects on production process such as: 1. Volume of production was less 2. There were lots of problems as the production process was not smooth due to less employees and also that the production of Swift had to be shifted from Manesar plant to Gurgaon plant on a temporary basis so that the consumers were not affected.
3. Market share decreased 4. Badly affected vendors/vendor employees 5. Plant equipment damaged by striking employees 6. Expenditure rises for transportation. 7. Company forced to declare a layoff. 8. Many vital information lost by damaged ITD cables/PCUs. Question 5: Were the vendors supportive during and after the strike?
Yes Were the vendors supportive during and after the strike No
16
Among 20 respondents 16 respondents told researcher that yes the vendors were supportive during and after the strike, while only 4 respondents said that the vendors were not supportive.
Question 6: What were the various measures taken by the management post-strike to speed up the production process? Answer6: Researcher tried to find out the various measures taken by management post-strike to speed up the production process and they are as follows: 1. Market favourite models shifted to main plant. 2. Segregation of manpower and identify the trouble makers. 3. Training given to employees at all levels to handle stress as well as to keep the motivation level high. 4. Transfer of manpower from main plant to Manesar. 5. All damaged systems/robots reinstalled. 6. Regular meetings with recognised union. 7. Implemented a good wage revision package 8. A committee formed for workers concern including their representation. 9. Proper tie up with Government agencies. 10. Taking more emphasis on employee management relations. 11. New recruitment policies. 12. No Contractual manpower in direct production line. Question 7: Do you think the management could have solved the Industrial Relations issues faster and resumed production earlier?
Yes No
Do you think the management could have solved the Industrial Relations issue faster and resumed production earlier?
11
Researcher found out that it was almost a 50 50 case that the management could have or could not have solved the industrial relations issue and resumed the production earlier. Some of the respondents said that, yes, the issues could have been sort out earlier and the production could have resumed if the Management would have taken adequate steps to figure out the exact problem, while some respondents told the researcher that the strike was not in anyones hand and nothing could have been done to solve the issue.
Question 8: Any other point or comments? The respondents did not reply to this question.
Chapter 5.0: Conclusion and Recommendations
5.1 Findings The 13-day strike of workers at the Maruti Suzuki factory at Manesar (Gurgaon) finally concluded with a significant victory of the workers this June. The management was forced to reinstate the 11 workers who had been sacked for agitating for the right to form a union of their choice. The existing union in Maruti was the management-approved Maruti Udyog Kamgar Union (MUKU). Workers had asserted that this union was not protecting their interests, and had formed a new union the Maruti Suzuki Employees Union (MSEU). The management had refused to recognise or negotiate with this union, insisting that only the MUKU would be allowed to function. The Maruti workers demand for their legally mandated right to a union of their choice struck a chord with the working class all over the country. The fact that workers were sacked for raising this basic demand highlights the fact that in factories in India, the bare minimum of industrial democracy is suppressed in order to maintain exploitative conditions. After the agreement and the end the strike, the struggle for a union separate from the management-approved one will continue.
The Haryana CM in a meeting with the Director General and CEO of Maruti declared that he would disallow the formation of any union except the one approved by the management. Such a declaration is in itself an open violation of the statutory and legally mandated right of workers to form unions of their own choice. That an elected CM should thus openly endorse the violation of the law of the land and the rights of workers by corporations is a comment on the prevailing ruling class hostility towards workers rights. Workers in automobile units like Maruti Suzuki earn significantly higher wages than other sections of workers. Their sustained strike for nearly two weeks (withstanding threats, intimidation, cutting off of electricity and water) sends a strong message that the question of workers dignity, rights to unionise, and industrial democracy are central to workers lives and aspirations. This is not the first time workers at automobile units in Gurgaon have waged struggles for the right to form a union. Maruti workers themselves have had to wage a similar struggle a decade ago, Honda workers faced severe police brutality in the course of a similar struggle, and in 2009, the entire Gurgaon-Manesar belt witnessed a historic strike raising basic issues of industrial democracy. But this fundamental right of workers is routinely denied in all factories and industrial clusters all over the country. Denial of workers right to form unions and conduct protest actions is a symptom of a serious erosion of democracy and assault on rights. And this assault is being conducted by governments in order to appease corporate power and give corporations a free hand to violate laws and exploit workers. There was lack of Collective Bargaining and the absence of convincing
response from the management. The workers lacked the work ethics. Unlike the Japanese and Korean workers, Indian workers did not care about the impact of their agitation on the viability o f t h e company and the attitude of customers. Indian management also seem to have failed fully grasp and internalize the Japanese Management. I t w o u l d b e i n e v e r y b o d y s i n t e r e s t i f t h e m a n a g e m e n t w e r e m o r e s e n s i t i v e t o labour and labour was equally concerned about the product market development. 5.2 Recommendations Maruti should learn how to deal with young workers to avoid strike in future. The average age of the Manesar plant workers is roughly about 24-25 years. Perhaps, the emphasis should be on imparting more education to workers how to adapt to the working environment and give respect to the laws. It is a question of how you create an environment and how you adapt to it. It is a two-way process."
BIBLIOGRAPHY
http://www.marutisuzuki.com/ , about us and logo, original website of Maruti India, retrieved on 27th January 2013.
http://www.marutisuzuki.com/corporate.aspx , corporate, original website of Maruti India, retrieved on 28th January 2013.
http://www.marutisuzuki.com/MarutiSuzuki_error%20Page.html? aspxerrorpath=/vision-and-core-values.aspx , vision and core values, original website of Maruti India, retrieved on 28th January 2013.
Research Design, Page No 21, Research Methodology. Methods and Techniques (Second revised edition) 2009, C. R. Kothari, 28th January 2013.
Methods of Data collection, Page No 95, Research Methodology. Methods and Techniques (Second revised edition) 2009, C. R. Kothari, 29th January 2013.
Sampling Design, Page No 55, Research Methodology. Methods and Techniques (Second revised edition) 2009, C. R. Kothari, 29th January 2013.
http://www.team-bhp.com/forum/indian-car-scene/98577-strikes-indian-automobilecompanies.html , strike in automobile sector retrieved on 29th January 2013. http://onganya.blogspot.in/2010/03/questionnaire-as-data-collection.html, Data Collection method retrieved on 30th January 2013. http://www.ianswer4u.com/2012/02/primary-research-advantage and.html#ixzz2B6ioqOwT , Primary data research retrieved on 30th January 2013.
http://www.worldbank.org/poverty/impact/methods/datacoll.htm , data collection methods retrieved on 2nd February 2013.
http://articles.economictimes.indiatimes.com/2012-08 07/news/33083609_1_manesarplant-japan-s-suzuki-motor-dzire, manesar strike details retrieved on 2nd February 2013.
Appendix Survey Questions
Vendor Survey Questionnaire "Impact of Industrial Relation issues at MUL on vendors and supply chain"
The data collected through the survey will be kept strictly confidential and will only be utilised for academic purposes. The data will be presented in the form of analysis and no individuals name will be mentioned in the research report to maintain confidentiality.
Contact Person: _________________________________________________________________
Designation____________________________________________________________________
Name of Company : ____________________________________________________________
1.
How many years have you been associated with Maruti? a) b) c) d) e) Less than 5 years 5-10 years 10-15 years 15-20 years 20-25 years
2.
Do you supply to any other company automobile manufacturer? a) b) Yes No
3.
What were the challenges that you faced during the recent strike? a) _______________________________________________________ ________________________________________________________
b) _______________________________________________________ ________________________________________________________
c) ________________________________________________________
______________________________________________________ __
4. Was there a major decrease in the supply of components with respect to quantity? If yes, provide an approximate percentage of decrease and time period (in months)?
_____________________________________________________________________
5.
Did you at any point of time during the stretched out strike feel that this
Industrial Relations issue will drag further and revenue losses will be too high to bear? a) b) c) Yes To some extent No
6. Did you receive any kind of support from Maruti during the strike period ? a) Yes b) No
If Yes, elaborate _______________________________________________________
_____________________________________________________________________
____________________________________________________________________
7.
Post strike has the things come under control and business back to normal? a) b) c) d) Yes Yet to pick up Not fully No
8.
Any other point or comments?
Employee Survey Questionnaire "Impact of Industrial Relation issues on production"

The data collected through the survey will be kept strictly confidential and will only be utilised for academic purposes. The data will be presented in the form of analysis and no individuals name will be mentioned in the research report to maintain confidentiality.
Contact Person: _________________________________________________________________
Designation: __________________________________ Location: ________________________
1. Your total years of experience?
a) b) c) d) e) f)
2. How many years have you been employed with Maruti?

a) b) c) d) e) f) Less than 5 years 5-10 years 10-15 years 15-20 years 20-25 years more than 25 years
3. Was it possible that the strike could have been avoided? a) b) c) Yes Not exactly No
4. What was the effect of strike on production process? a) b) c)
5. Were the vendors supportive during and after the strike? a) b) Yes No
6. What were the various measures taken by the management post-strike to speed up the production process? a) b) c)
7. issue
Do you think the management could have solved the Industrial Relations
faster and resumed production earlier? a)Yes

b) No
8.
Any other point or comments?

Industrial Relations Project

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Industrial Relations Project

Загружено:

Авторское право:

Доступные форматы

Chapter1.

0: INTRODUCTION AND OVERVIEW

1.1 Introduction: Company

1.5 Benefits of study

Chapter 2.0 Review of Related Literature

Honda Siel faces labour unrest

Gurgaon - Manesar belt no stranger to labour unrest

environment and filling up of supervisory vacancies. However the m a n a g e m e n t r e f u s e d t o a c c e d e t o t h e s e demands.

The major reasons behind labour unrest:

Mandatory requirement of signing a good conduct undertaking.

Gurgaon: Maruti Suzuki Workers Strike

Maruti Suzuki statement on Manesar

Maruti Suzuki declares lock out at Manesar Plant

Manesar plant lockout may cost Maruti 20% decline in profit

Marutis vendors to face the heat of production cuts

Chapter 3.0 Research Design and methods 3.1 Research Design

Different type of Research designs

Chapter 4.0 : DATA ANALYSIS AND PRESENTATION

Source: Survey Questionnaire

Question2: Do you supply to any other company automobile manufacturer?

Source: Survey Questionnaire

Source : Survey Questionnaire

Question 8: Any other point or comments?

Total years of experience 0 Source: Survey Questionnaire

Most of the respondents have 15-20 years of total experience.

Question2: Years you have been employed with Maruti?

Source: Survey Questionnaire

Source: Survey Questionnaire

Chapter 5.0: Conclusion and Recommendations

http://www.worldbank.org/poverty/impact/methods/datacoll.htm , data collection methods retrieved on 2nd February 2013.

http://articles.economictimes.indiatimes.com/2012-08 07/news/33083609_1_manesarplant-japan-s-suzuki-motor-dzire, manesar strike details retrieved on 2nd February 2013.

Appendix Survey Questions

Contact Person: _________________________________________________________________

Name of Company : ____________________________________________________________

Do you supply to any other company automobile manufacturer? a) b) Yes No

If Yes, elaborate _______________________________________________________

Any other point or comments?

Employee Survey Questionnaire "Impact of Industrial Relation issues on production"

Contact Person: _________________________________________________________________

Designation: __________________________________ Location: ________________________

1. Your total years of experience?

2. How many years have you been employed with Maruti?

4. What was the effect of strike on production process? a) b) c)

faster and resumed production earlier? a)Yes

Any other point or comments?

Вам также может понравиться

Designation: __________ Location: