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MARUTI-SUZUKI LABOUR MANAGEMENT ISSUE

ET NEWS ANALYSIS REPORT ON:

MARUTI-SUZUKI LABOUR MANAGEMENT ISSUE.

PRESENTED BY (MMSA):
NAME ARCHANA PANDIT KASTURI GAUR ROLL NO 35 12

MARUTI-SUZUKI LABOUR MANAGEMENT ISSUE

TABLE OF CONTENTS:

FACTS. CONSEQUENCES OF THE STRIKE. STRATEGIES ADOPTED BY MARUTI SUZUKI HRM. STRATEGIES THAT SHOULD HAVE BEEN ADOPTED. RECENT NEWS.

MARUTI-SUZUKI LABOUR MANAGEMENT ISSUE

MARUTI-SUZUKI LABOUR MANAGEMENT ISSUE

The 14-day-long strike at Maruti's Manesar plant, which is estimated to have cost the company over Rs. 700 crore, was called off on 21st October following a tripartite agreement between the management, workers and Haryana government.

FACTS:
1. The series of strikes that began at the Manesar plant in June this year demanding the recognition of a new union the Maruti Suzuki Employees Union (MSEU) at the plant located in Haryana. 2. There was a discontent among the workers with regards to their wages- They complain, that Maruti cuts their bonus payments for any minor delay or as soon as they take a day off, up to 2,200 Rs wage reductions for a day off. 3. They also expressed their discontent about the workload. The break time was not sufficient to walk 400 meters to the canteen and consume their meal. They also required permission to visit the washroom.

CONSEQUENCES OF THE STRIKE:


1.

The ongoing strike had also cast its shadow on the working of ancillary units which had been supplying auto parts to Maruti. The discontinuation of production in Maruti has forced auto component suppliers to shut down their units and has led to a pile up of inventory of auto parts. e.g. On 12th of September around 1200 temp workers at neighbouring Munjal Showa factory went on wildcat strike. Munjal Showa manufactures around 60,000 shock absorbers for two-wheelers a day the tool-down threatened the production at the local Honda and Hero Honda plants. The next day the Munjal management promised to make 125 workers permanent and complained about the negative influence of the Maruti workers.

2. The labour unrest at Manesar will have an adverse impact on future investments of Japan as well as

other foreign investors in the region. Maruti Suzuki has been a successful instance of Japanese investment in India. Now with labour disputes at the company, it would be difficult to promote investment in the area.

MARUTI-SUZUKI LABOUR MANAGEMENT ISSUE

STRATEGIES ADOPTED BY MARUTI SUZUKI HRM:


1. Certain decisions taken by the management - like discontinuing the bus service, denying access to water, canteen, washroom- instead of suppressing the agitation, provoked the workers. 2. They adopted the strategy of crushing the workers representatives by suspending them. 3. The company tried to introduce the good conduct bonds, hoping that the main trade unions stick to the traditional ways of struggle & would not opt for such strikes in future. 4. Instead of recognizing MSEU the company will set up a grievance committee and labour welfare committee with equal representation from the management and the workers. Presence of a Labour Officer from the state government will be a key comforting factor.

STRATEGIES THAT SHOULD HAVE BEEN ADOPTED:


1. They should have focused more on the strategy of collective bargaining- held sessions with the workers, where they would have been encouraged to speak about their problems. 2. They should have encouraged the workers to be part of the existing union and assure them that the union would have active intervention from the management. 3. In Manesar plant the workforce is younger and political influence is much stronger in NCR region, hence the company should have introduced the good conduct bond at the time of hiring. 4. Maruti has its entire investment, plants and ancillary suppliers in Delhi NCR region. All other car manufacturers have plants spread across various Indian states which allow them to continue production in other plants when one plant goes on strike.

RECENT NEWS:
Maruti-Suzuki board approved a big plant to set up an additional manufacturing facility in Gujarat. Along with vendors it could invest up to INR 18,000 crore in Gujarat as it looks to produce around 2 million units in the long run. Maruti-Suzuki India is looking at a phased manner of starting car production in the state. It proposes to invest around INR 4,000 crore in the first phase of the plant.

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