A Project Report of Human Resource Management on

Industrial Disputes
Submitted To: Prof. Revati Deshpande

S.V. Institute of Management, Kadi

Affiliated to Gujarat Technological University, In Partial Fulfillment of the requirements of Master of Business Administration (MBA) Programme

Batch 2011-13 Submitted By: Name Gohil Manish Roll No. Div A 11 Enrollment No. 117490592066

PREFACE
As a part of the course curriculum, M.B.A. students are require to prepare a project report for the Human Resource Management. The object behind preparing this project report is to relate to the management subject taught in the class room to their practical application. The concept of human resource management is of comparatively recent origin. This does not mean that over the decades people in all walks of life have not applied the basic philosophy of human resource management. The fact is, it is only in the recent past that an organized body of thoughts and principals which holds the developments of human ability as an investment and not cist, has been formulated and propagated. Manpower is indisputably the basic resource. It is an indispensable means of converting other resources for achievement of organizational goals. Human resource management is an integrated strategy and planned development process for effective utilization of human resource and organization. It is rather a total matching process between Hard Ss (structure, system and strategy) and soft Ss (staff, skill, style and super ordinate goals). An increasing number of organizations place heavy emphasis on managers process skills in working closely with people of varied background, and in motivating employees, maintaining morale, building trust, gaining commitment, fostering teamwork, leading innovation and facilitating organizational change. On the other hand managers are expected to engage in a wide variety of HRM activities include hiring the right person for the right job, inducting and training new employees, appraising and managing the performance of super ordinates, controlling labor crisis, managing organizational change and creating a corporate culture, understanding international dimension of organizational behavior and developing skills in cross-cultural negotiation.
Date :-

Place :- S.V. Institute of Management Kadi.

ACKNOWLEDGEMENT
ACQUIRING KNOWLEDGE HAS NO END
At this moment of our substantial enhancement. We hardly have enough words to express our gratitude towards those who have devoted their precious time for our project report. We are debited to some great personalities who always inspire us to this work and sincerely wish to thank all the persons who spend their valuable time for guiding and helping us to complete this project report. First of all I would like to thanks our Head of Department Prof. Bhavin Pandya for providing us the opportunity to work on this project. We are greatly in debited to our project report guide Prof. Rewati C. Deshpandey who has supported us throughout the report. Numerous other people have contributed in the completion and ultimately success of this report and their sincere appreciation. And last but not the least. I would like to thank all my friends who assisted me through the work.

Gohil Manish

Executive Summary
Many skills and competencies are necessary for successful performance in HRM. Specifically, we can say that certified HR practitioners must have exposure and an understanding in six specific areas of the field. This includes Management practices, Selection and Placement, Training and Development Compensation and Benefits, Employee and Labor Relations, and Health, Safety, and Security. Maruti Suzuki, the countrys largest car maker, has toughened its stand against the protesting workers at its manesar plant in Haryana and terminated the services of 11, who are allegedly inciting the workers, with immediate effect. The action was taken even as the management is holding discussions with the workers to stop the agitation. Chairman R. C. Bhargava said the strike was illegal and the company had imposed no work no pay principle from today. The strike is illegal. The workers had not gives any notice to the management. Also, those two have applied for registration of a new union, which is separate from that of the Gurgoan plant, did not receive permission or were registered. The 2,500-odd workers at the Manesar plant, who struck work from Saturday evening, are demanding the recognition of a new union-Maruti Suzuki Employees Union (MSEU). The union is independent of the present one including workers of the Gurgaon plant. V. L. Sachdeva, secretary AITUC (All India Trade Uinon Congress), which is backing the strike said, The new union applied for a registration to the registrar of trade unions on Friday. The next day, Marutis management asked its workers to signn an undertaking that they will not be a part of the new union. We do not want the management interfering in our matters. We have met the labour minister and the labour commissioner. There is every likelihood that agitation will increase if demands are not met. Sources said that senior management at Maruti Suzuki planned to meet labour department officials on the issue. He said the management was willing to offer sops to ensure that the agitating workers returned to work. The Maruti union will hold elections next month. I am sure they can show their strength there. They can air their grievances there, he said. Bhargava said the management was willing to look at a separate institutional mechanism to address the special concerns of the Manesar workers, independent of the Gurgaon plant. However, the management is trying to convince the workers that a politically.- affiliated union is counter-productive for workers as it is followed by multiple other unions with allegiance to other parties being formed. One strong union is much better than multiple unions, which only helps the management. That is what we are trying to convince them, said a key executive involved in the talks with the workers.

Index
Chapter No.
Chapter 1 Introduction
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Definition of Industry What is an Industrial Dispute Objectives of the Extent Act Important Definitions Authorities under this act Prohibition of Strikes and Lockouts Illegal Strikes and Lock-Outs Awards and Settlement Strikes Lock-Outs Lay-Offs Retrenchment Closure

Particulars

Page No.
1 2 3 4 5 7 12 13 13 14 15 16 18 20 22 23 24 25 27 32 33 36

Chapter - 2

Company Profile 2.1 Introduction of the Company 2.2 About the Plants 2.3 Products of the Company 2.4 An overview of the Strike & its reasons How the Chapter Implemented in the Organization

Chapter 3 Chapter 4

3.1

Trade union Solidarity for Maruti workers

Conclusion

CHAPTER-1 :- INTRODUCTION 1.1 :- Definition of Industry

While defining the scope of the term Industry in Sec. 2(j), the Supreme Court overruled the decisions given earlier in the cases relating to the Safdarjung Hospital, Gymkana Club, Delhi University and Dhanrajgiri Hospital, and observed: Any systematic activity organised or arranged in a manner in which trade or business was generally organised or arranged would be and industry even if proceeded form charitable motives. It was the nature of the activity that had to be considered and it was upon the application of that test that even the states inalienable functions fell within the definition of industry. According to new Sec. 2 (j) as substituted by the Amendment Act of (1982), Industry means any systematic activity carried on by co-operation between an employer and his workmen. The workmen may be employed by the employer directly or by or through any agency, including a contractor. The employment should, however, be for the production, supply or distribution of goods or service with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature). It makes no difference whether or not.I. II. Any capital has been invested for the purpose of carrying on the activity referred to above. or Such activity is carried on with a motive to make any gain or profit.

1.2 :- What is an Industrial Dispute

Industrial Disputes means any dispute or difference between a) Employer and Employee b) Employer and Workmen, or c) Workmen and Workmen, which is connected with (a) the employment or nonemployment, (b) the terms of employment, or (c) the conditions of labour of any person. Real and Substantial Difference :The term Industrial Dispute connotes a real and substantial difference having some element of persistency and continuity till resolved and is likely, if not resolved, to endanger the industrial peace of undertaking or the community, when parties are at variance and the dispute or difference is connected with employment or non-employment or the terms of employment or with the conditions of labour. There comes in to existence and industrial dispute [Shambhu Nath Goyal v. Bank of Baroda, (1978) 2 S.S.C.C. 353.]. The expression terms of employment would ordinary include only the contractual terms and conditions but those terms which are understood and applied by the parties in the practice of habitually or by common consent without ever being incorporated in the contract are also included. Three ingredients of Industrial Dispute :In the ordinary language and Industrial Dispute is implied to mean a dispute between the workman and the management. In Standard Vacuum Refining Co. of India Ltd. v. Their workmen, A.I.R. (1960) S.C. 948, it was held that a dispute as to whether the system of engaging contract labour prevailing in certain sections of an industrial concern should be discontinued and the contractors laborers should be made workmen of the company is an Industrial Dispute if it is taken up and sponsored by the regular workmen of the concern, it was observed in this case. The definition of Industrial Dispute in Sec. 2(k) of the Industrial Dispute Act, 1947 has three ingredients, and if all three ingredients are satisfied, the dispute raised is an Industrial Dispute which could validity be referred under Sec. 10 to a tribunal for adjudication. These three ingredients are a) There should be a real and substantial dispute or difference. b) The dispute or difference should be between employer and his workmen, and c) The dispute difference must be connected with the employment or non-employment or terms of employment, or with the conditions of labour of any person. Limitations of Definition :1) The adjective Industrial Dispute relates the dispute to an industry as defined in the act, and
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2) The definition expressly states that not disputes and difference of all sorts but only those which bear upon the relationship of employers and workmen and the terms of employment or non-employment and conditions of labour are contemplated. Individual and Collective Dispute :The Industrial Dispute may be (1) Individual Dispute or (2) Collective Dispute. Sec. 2 (a) provides that where any employer discharges, dismiss, retrenches or otherwise terminates the services of an individual workman any dispute or difference between that workman and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute even if no other workman nor any union of workmen is a party to the dispute. A collective dispute may relate to any of the following matters : a) Wages, bonus, profit-sharing, gratuity, compensatory and other allowances. b) Hour of work, leave with wages, holidays. c) Rules of discipline, retrenchment of workmen, closure of establishment, rationalization.

1.3 :- Objectives of the Industrial Dispute Act :The main objectives of the act are : 1) To secure industrial peace--a) By preventing and setting industrial disputes between the employer and workmen, and b) By securing and preserving amity and good relations between the employer and workmen through the internal Work Committee, and c) By promoting good relation though and external machinery of conciliation, Courts of Inquiry, Labour Courts, Industrial Tribunals and National Tribunals. 2) To ameliorate the condition of workmen in industry a) By redressal of grievances of workmen through a statutory machinery, and b) By providing job security

1.4 :- Important Definitioins :1) Board :[Sec. 2 (c)]. Board means a Board of Conciliation constituted under the Act. 2) Closure :[Sec. 2 (cc)]. It means the permanents closing down of a place of employment part thereof. 3) Conciliation officer :[Sec. 2 (d)]. Conciliation officer means a conciliation officer appointed under Act. 4) Conciliation Proceeding :[Sec. 2 (e)]. It means any proceeding held by a conciliation officer of Board of Conciliation under the Act. 5) Employer :[Sec. 2 (g)]. Employer in relation to an industry carried on by or under the authority of any department of the Central Government or a State Government means the authority prescribed in this behalf. Where no authority is prescribed, the employer means the head of department carrying on the industry But in relation to an industry carried on by or on behalf of a local authority, employer means the chief executive officer of the authority. 6) Labour Court :[Sec. 2 (kkb)]. It means a Labour Court constituted under Sec. 7. 7) Lay off :[Sec. 2 (kkk)]. Lay-off means the failure, refusal or inability of an employer to give employment to a workman (a) whose name is borne on the muster-rolls of his industrial establishment, and (b) who has not been retrenched. The failure, refusal, or inability to give employment may be due to a) b) c) d) Shortage of Coal, Power, or Raw Materials, or The accumulation of stocks, or The breakdown of machinery, or Natural calamity or for any other connected reasons.

Essentials of Lay-off :a) There must be a failure or refusal inability of the employer to continue employee in his employment. b) The employee laid off must be on the muster-rolls of the establishment on the day of lay-off. c) The failure, refusal or inability to give employment may be due to shortage of raw materials or accumulation of stocks or breakdown of machinery or natural Calamity or some other reason. d) The employee must not have been retrenched.

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8) Lock-Out :[Sec. 2 (i)]. It means the temporary closing of a place of employment, or the supervision of work, or the refusal by an employer to continue to employ any number of persons employed by him. The word temporary was added to the definition by the Amendment Act of 1982. Essentials of Lock-Out :a) There is a temporary closing of the place of employment, or supervision or withholding of the work by the employer in some form. b) There is an element of demands for which the place of employment is locked-out or closed. c) There is an intention to re-employ the worker if they accept the demands. Lock- Out is employers weapon :Lock-Out can be described as the antithesis of a strike. Just a strike is a weapon available to the employee for enforcing their industrial demands, a lock-out is the weapon available to the employer to persuade by a coercive process the employees to see his point of view to accept his demands. 9) Strike :[Sec. 2 (q)]. It means a) A cessation of work by a body of persons employed in any industry acting in combination, or b) A concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment, or c) Refusal under a common understanding of any number of such persons to continue to work or accept employment. 10) Settlement :a) A settlement arrived at in the course of conciliation proceedings (which may be held by a Conciliation Officer or Board of Conciliation), and includes b) A written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer authorized in this behalf by the appropriate government and conciliation officer.

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1.5) :- Authorities under this act :The Industrial Dispute Act intends, by making various provisions, the prevention and settlement of Industrial Disputes. The Act, in is Preamble, has also emphasized this point by saying that the Act is for the investigation and settlement of Industrial Dispute. The Act has set up machinery to deal with the Industrial Disputes. These authorities are meant for dealing with the Industrial Disputes. Even though the name authority is used, it does not mean each and every authority has power to make a binding decision. The act provides elaborate and effective machinery for bringing about industrial peace by setting up various for the investigation and settlement of industrial disputes. These authorities are : 1) 2) 3) 4) 5) 6) 7) Works Committee (Section 3) Conciliation Officer (Section 4,11 & 12) Board Of Conciliation (Section 11 & 13) Court Of Inquiry (Section 6,10,11 &14) Labour Court (Section 7,11 &15) Industrial Tribunal (Section 7A,11 & 15) National Tribunal (Section 7b,11 & 15)

1) Work Committee :1) In the case of any industrial establishment in which one hundred or more workmen are employed or have been employed on any day in the preceding twelve months the appropriate Government may by general or special order require the employer to constitute in the prescribed manner a Works Committee consisting of representatives of employers and workmen engaged in the establishment so however that the number of representatives of workmen on the Committee shall not be less than the number of representatives of the employer. The representatives of the workmen shall be chosen in the prescribed manner from among the workmen engaged in the establishment and in consultation with their trade union, if any, registered under the Indian Trade Unions Act, 1926 (16 of 1926). 2) It shall be the duty of the Works Committee to Promote measures for securing and preserving amity and good relations between the employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavor to compose any material difference of opinion in respect of such matters.

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2) Conciliation Officer :1) The appropriate Government may, by notification in the Official Gazette, appoint such number of persons as it thinks fit, to be conciliation officers, charged with the duty of mediating in and promoting the settlement of industrial disputes. 2) A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period. Duties of Conciliation Officer :1) Where an industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall, hold conciliation proceedings in the prescribed manner. 2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute. 3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliation officer shall send a report thereof to the appropriate Government or an officer authorized in this behalf by the appropriate Government together with a memorandum of the settlement signed by the parties to the dispute. 4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at. 5) If, on a consideration of the report referred to in sub-section (4), the appropriate Government is satisfied that there is a case for reference to a Board, Labour Court, Tribunal or National Tribunal, it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefore. 6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government : Provided that, Subject to the approval of the conciliation officer, the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.

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3) Board of Conciliation :1) The appropriate Government may as occasion arises by notification in the Official Gazette constitute a Board of Conciliation for promoting the settlement of an industrial dispute. 2) A Board shall consist of a Chairman and two or four other members, as the appropriate Government thinks fit. 3) The Chairman shall be an independent person and the other members shall be persons appointed in equal numbers to represent the parties to the dispute and any person appointed to represent a party shall be appointed on the recommendation of that party: Provided that, if any party fails to make a recommendation as aforesaid within the prescribed time, the appropriate Government shall appoint such persons as it thinks fit to represent that party. 4) A Board, having the prescribed quorum, may act notwithstanding the absence of the Chairman or any of its members or any vacancy in its number : Provided that if the appropriate Government notifies the Board that the services of the Chairman or of any other member have ceased to be available, the Board shall not act until a new chairman or member, as the case may be, has been appointed. Duties of Board :1) Where a dispute has been referred to a Board under this Act, it shall be the duty of the Board to endeavor to bring about a settlement of the same and for this purpose the Board shall, in such manner as it thinks fit and without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as it thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute. 2) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings, the Board shall send a report thereof to the appropriate Government together with a memorandum of the settlement signed by the parties to the dispute. 3) If no such settlement is arrived at, the Board shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the proceedings and steps taken by the Board for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, its findings thereon, the reasons on account of which, in its opinion, a settlement could not be arrived at and its recommendations for the determination of the dispute. 4) If, on the receipt of a report under-sub-section (3) in respect of a dispute relating to a public utility service, the appropriate Government does not make a reference to a Labour Court, Tribunal or National Tribunal under section 10, it shall record and communicate to the parties concerned its reasons therefore.
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5) The Board shall submit its report under this section within two months of the date on which the dispute was referred to it or within such shorter period as may be fixed by the appropriate Government : Provided that the appropriate Government may from time to time extend the time for the submission of the report by such further periods not exceeding two months in the aggregate : Provided further that the time for the submission of the report may be extended by such period as may be agreed on in writing by all the parties to the dispute. 4) Court of Inquiry :1) The appropriate Government may as occasion arises by notification in the Official Gazette, constitute a Court of Inquiry for inquiring into any matter appearing to be connected with or relevant to an industrial dispute. 2) A Court may consist of one independent person or of such number of independent persons as the appropriate Government may think fit and where a Court consists of two or more members, one of them shall be appointed as the chairman. 3) A Court, having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its members or any vacancy in its number : Provided that, if the appropriate Government notifies the Court that the services of the Chairman have ceased to be available, the Court shall not act until a new chairman has been appointed. 5) Labour Courts :1) The appropriate Government may, by notification in the official Gazette, constitute one or more Labour Courts for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may be assigned to them under this Act. 2) A Labour Court shall consist of one person only to be appointed by the appropriate Government. 3) A person shall not be qualified for appointment as the Presiding Officer of a Labour Court, unless a) He is, or has been, a Judge of a High Court; or b) He has, for a period of not less than three years, been a District Judge or an Additional District Judge; or c) Omitted d) He has held any judicial office in India for not less than seven years; or e) He has been the Presiding Officer of a Labour Court constituted under any Provincial Act or State Act for not less than five years.

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6) Industrial Tribunals :1) The appropriate Government may, by notification in the Official Gazette, constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any matter, whether specified in the Second Schedule or the Third Schedule and for performing such other functions as may be assigned to them under this Act. 2) A Tribunal shall consist of one person only to be appointed by the appropriate Government. 3) A person shall not be qualified for appointment as the presiding officer of a Tribunal unless a) He is, or has been, a Judge of a High Court; or b) He has, for a period of not less than three years, been a District Judge or Additional District Judge; c) Omitted

an

4) The appropriate Government may, if it so thinks fit, appoint two persons as assessors to advise the Tribunal in the proceeding before it. 7) National Tribunals :1) The Central Government may, by notification in the Official Gazette, constitute one or more National Industrial Tribunals for the adjudication of industrial disputes which, in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by, such disputes. 2) A National Tribunal shall consist of one person only to be appointed by the Central Government. 3) A person shall not be qualified for appointment as the presiding officer of a National Tribunal unless he is, or has been, a Judge of a High Court. 4) The Central Government may, if it so thinks fit, appoint two persons as assessors to advise the National Tribunal in the proceeding before it. Duties of Labour Courts, Tribunals and National Tribunals :Where an industrial dispute has been referred to a Labour Court, Tribunal or National Tribunal for adjudication, it shall hold its proceedings expeditiously and shall, within the period specified in the order referring such industrial dispute or the further period extended under the second proviso to sub-section (2A) of section 10 submit its award to the appropriate Government.

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1.6 :- Prohibition of Strikes and Lock-Outs

1) No person employed in a public utility service shall go on strike in breach of contract a) Without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking; or b) Within fourteen days of giving such notice; or c) Before the expiry of the date of strike specified in any such notice as aforesaid; d) During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings. 2) No employer carrying on on any public utility service shall lock-out any of his workmen a) without giving them notice of lock-out as hereinafter provided, within six weeks before locking-out; or b) Within fourteen days of giving such notice; or c) Before the expiry of the date of lock-out specified in any such notice as aforesaid; or d) During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings. 3) The notice of lock-out or strike under this section shall not be necessary where there is already in existence a strike or, as the case may be, lock-out in the public utility service, but the employer shall send intimation of such lock-out or strike on the day on which it is declared, to such authority as may be specified by the appropriate Government either generally or for a particular area or for a particular class of public utility services. 4) The notice of strike referred to in sub-section (1) shall be given by such number of persons to such person or persons and in such manner as may be prescribed. 5) The notice of lock-out referred to in sub-section (2) shall be given in such manner as may be prescribed. 6) If on any day an employer receives from any person employed by him any such notices as are referred to in sub-section (1) or gives to any person employed by him any such notices as are referred to in sub-section (2), he shall within five days thereof report to the appropriate Government or to such authority as that Government may prescribe, the number of such notices received or given on that day.

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1.7 :- Illegal Strikes and Lock-Outs

1) A strike or a lock-out shall be illegal if a) It is commenced or declared in contravention of section 22 or section 23; or b) It is continued in contravention of an order made under sub-section (3) of section 10 [lda-136 or sub-section (4A) of section 10A; 2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time of the reference of the dispute to a Board, an arbitrator, a Labour Court, Tribunal or National Tribunal, the continuance of such strike or lock-out shall not be deemed to be illegal, provided that such strike or lockout was not at its commencement in contravention of the provisions of this Act or the continuance thereof was not prohibited under sub-section (3) of section 10 or subsection (4A) of section 10A. 3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal. 1.8 :- Award and Settlements Award : It means an interim or final determination of any Industrial Dispute to any question relating thereto, by any Labour Court, Industrial or National Tribunal and includes arbitration award made under section 10A. Settlement (Section 18-21) : It means a settlement arrived at in the course of conciliation proceedings and includes a written agreement between the employer and workman arrived at, otherwise than in the course of conciliation proceedings where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer authorized in this behalf by the Appropriate Government and the Conciliation Officer.

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1.9 :- Strikes Strike means cessation of work by a body of persons in any Industry:a) Acting in combination, or b) A concerted refusal, or c) A refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or accept employment. Strike is a weapon in the hands of the workmen, in the process of collective bargaining. Strike tests the economic bargaining power of each side and forces each of them to face the need it has for others contribution. The economic pressure of the strike is the catalyst which makes the agreement possible. Collectively bargaining is a process of reaching agreement and strikes are an integral and frequently necessary part of that process. Strikes in Public Utility Services : Section 22 says In case an industry is a public utility service, no person employed in it shall g o on strike in breach of contracta) Without giving to the employer notice of a strike, provided within 6 weeks before striking, b) Within 14 days of giving such notice, or c) Before the expiry of the date of strike specified in any such notice; or d) During the pendency of any conciliation proceedings before a conciliation offices and 7 days after the completion of these proceedings Notice of strike should be in prescribed form. The copy of this notice is to be submitted to the conciliation officer, or such authority as may be prescribed by the Appropriate Government. The employer, on receipt of notice of strike from employees, shall report within 5 days toa) Appropriate Government, b) Authority prescribed by the Appropriate Government- which states the number of notices received on that day. The date on which the workman proposed to go on strike should be specified in the notice. A fresh notice is necessary when the date of strike specified in the original notice expires. A new notice is necessary, when the conciliation proceedings fail, which have started after the notice. The object of giving the notice is to allow the other party to come to terms, or to approach the authorities to intervene and stop the strike, if possible. During the period of notice, the parties can respond to each other. Illegality attaches only to that period which remains to expire before the commencement of action.

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General Prohibition of Strikes : Section 23 states the general prohibition of strike. No workman who is employed in any Industrial Establishment shall go on strike in the following circumstances: a) During the pendency of conciliation proceedings before a Board and 7 days after the completion of these proceedings; b) During the pendency of proceedings before a Labour Court, Industrial Tribunal or National Tribunal, and 2 months after the completion of these proceedings; c) During the pendency of arbitration proceedings before an arbitrator and 2 months after the completion of these proceedings; where notification has been issued under S 10A(3A) d) During any period in which a settlement or award is in operation in respect of any of the matters covered by the settlement or award.

1.10 :- Lock-Outs
Lock-out [Section 2(I)] meansa) The temporary closing down of a place of employment, b) The suspension of work, or c) The refusal by an employer to continue to employ any number of persons employed by him. As strike is a weapon in the hands of workmen for enforcing their demand, lock-out is a weapon in the hands of the employer to persuade the workers to agree to his point of view and accept his demands in the struggle between capital and labour. The notice of lock-0ut shall be given in prescribed manner. On event of employer giving notice of lock-out on any day to any person employed by him, he shall report the number of notices given to the Appropriate Government, within 5 days of giving such a notice. General Prohibition of Lock-Outs : The conditions of lock-outs in public utility services are dictated under Section 22 and are same as the conditions of Strikes. The provisions for general prohibition of lock-outs are dictated under Section 23, same as the provisions of Strikes. The notice of lock-out is not necessary when a lock-out is already existent in case of a public utility service. However, the employer shall send intimation of lock-out to the authority specified by the Appropriate Government, on the day of declaration of lockout itself.

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Strikes and Lock-Outs Wages and Justifications : Wages are generally not provided during the period of strikes when it is proven illegal under the Act. However, the factor of justification of reasons leading to the Act of going on strike, also decide the payment or non-payment of wages to the workmen. If a strike is not justified, but legal; or if a strike is illegal, but duly justified, the workmen are entitled to receive wages for the period of the strike. A lock-out in violation of the statutory requirements is illegal and unjustified and workers are entitled to wages for the lock-out period. For a legal lock-out, no wages are payable to the workmen. Strikes and Lock-Outs : Penalties : Prohibition of financial aid to illegal strikes or lock-outs (S.25) Penalty for illegal strike (S.26): Any workman, who commences, continues or acts in furtherance of an illegal strike shall be punishable with imprisonment up to 1 month, or fine up to Rs.50 or both. Penalty for instigation (S.27): Any person who instigates or incites other to take part in a strike or lock-out which is illegal shall be punishable with imprisonment up to 6 months or with fine up to Rs.1000 or both. Penalty for giving financial aid to illegal strikes and lock-outs (S.28): Punishable with imprisonment up to 6 months or fine up to Rs.1000 or both.

1.11 :- Lay-Offs
Lay-Off means: 1) The failure 2) Refusal, or 3) Inability of an employer on account of shortage of: a) Coal, b) Power or raw materials, or c) The accumulation of stocks, or d) The break-down of machinery, or e) Natural calamity, or f) For any other connected reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched. Lay-Off means putting aside workmen temporarily. The duration of a Lay-Off should not be longer than that of the current emergency. The employer workman relationship does not come to an end, but is suspended during the period of emergency. The workmans name should be essentially present on the muster rolls of the industry for claiming relief. The workman should not have been retrenched.
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 If work is given by the employer on a different shift, it would be considered as a halfday lay-off. If employment is not given within two hours, it would be considered as having laid-off that whole day. Rules and Provisions of Lay-Off : The payment of compensation for a lay-off is dependent upona) Status of a workman, i.e., badli, casual, or permanent b) Type of service, i.e., continuous or seasonal c) Number of workmen in the Industrial Establishment Industrial Establishments are classified into three groups depending on the number of workers employed in that establishment: a) Where the number of workmen is less than 50 b) Where the number of workmen is 50 100 c) Where the number of workmen is more than 100. Lay-Off Compensations : Compensation is provided to the workmen in an Industrial Establishment on the basis of the category they fall in from the above mentioned three groups: a) Nil compensation for IEs with less than 50 workmen. b) Compensation at the rate of 50% of the total basic pay and dearness allowance to a time limit of 45 days for IEs with 50 100 workmen. c) Compensation at the rate of 50% of the total basic pay and dearness allowance to a time limit of 45 days for IEs with more than 100 workmen. Workmen are not entitled to any compensation if alternate employment is provided by the employer in a radius of 5 miles, or if the lay-off is a result of a strike. Lay-Offs Panaleties : The employer of the Industrial Establishment is required to prepare a muster register that shows the name and other requisite details of all workmen in the prescribed format. Section 25M states that an employer of an Industrial Establishment employing 100 or more workmen on average per day in the preceding 12 months is required to obtain previous permission of specified authority appointed for the purpose by the Appropriate Government, by a notification by the official Gazette. Section 25Q says any employer who contravenes the provision of Section 25M shall be punishable with imprisonment up to one month, or fine up to Rs.1000 or both.

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1.12 :- Retrenchment
Retrenchment [S.2(oo)]: means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not includea) Voluntary retirement of workman, or b) Retirement of the workman on reaching the age of superannuation, if his contract contains a stipulation in this behalf, or c) Termination of the service of a workman as a result of non-renewal of the contract of employment, or d) Termination of employment of a workman on the ground of continued ill health. The word ill health means cataract, physical unfitness, infirmity due to old age, incapacity to work, leprosy, etc. Retrenchment means the discharge of surplus labour. It is not necessary that removal must be only when the establishment is in loss. The Supreme Court has interpreted the term retrenchment in stricter sense of it, that is to say, it means termination of service for any reason whatsoever. Retrenchment connotes in its ordinary acceptation that the business itself is being continued but that a portion of the staff of labour force is discharged a surplusage. Where a worker suffers an accident during the course of employment making him unfit for the job, termination on this ground is illegal. Where seasonal worker ceases to do work due to closure of season, it is not retrenchment. Retrenchment Provisions and Rules : Provisions are divided into two main categories which are as follows: a) Where number of workmen employed is less than 100, b) Where number of workmen employed is more than 100. Section 25F: No workman employed in any industry who is in continuous service for not less than one year under an employer shall be retrenched untila) The workman is given one months notice in writing indicating the reasons for retrenchment and the period of notice has expired, or b) In case one months notice is not given, the workman is paid wages for the period of the notice, in lieu of the notice period. c) The workman is paid at the time of retrenchment, compensation which shall be equal to 15 days average pay for every completed year of continuous service or any part thereof in excess of six months, and d) Notice in the prescribed manner is served on the Appropriate Government Section 25G: The normal rule is to retrench first of all the junior most workman. If an employer has sufficient reasons to depart from this rule, only then he can do so, but the reasons have to be recorded. The LIFO (Last In First Out) Principle is mentioned in the Section 25G, which states that the workman who is employed last will be retrenched first.
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 Section 25H gives a statutory right of reemployment to the retrenched workmen. If the employer wants to take the workmen in future, the retrenched workman has a right of preference over the others. This provides for preferential reemployment of the retrenched workmen. The employer should take precaution that he pays the retrenchment compensation at the time of retrenchment. In case the workman denies accepting compensation for the same, the employer should have sufficient proof that retrenchment compensation was offered to the workman, and clearly denied by him. Section 25K points out that the provisions of this chapter are applicable to Industrial Establishments employing 100 or more workmen on average per working day for the preceding 12 months. This establishment should not be of a seasonal character or in which work is performed only intermittently. Section 25N specifies that no workman who is in continuous service for not less that one year under an employer shall be retrenched untila) The workman has been given three months notice in writing indicating the reasons for retrenchment and the notice period has expired or the workman has been paid in lieu of such notice, wages for the period of notice. b) Notice in the prescribed manner has been given to the Appropriate Government and permission is granted. c) Workman has been paid compensation at the time of retrenchment which shall be equal to 15 days average pay for every completed year of continuous service or any part thereof in excess of six months. d) Inquiry is made by the Appropriate Government or specified authority and granting or refusing permission for the reasons to be recorded in writing. e) In case retrenchment is effected without making an application or where the permission for retrenchment is refused retrenchment shall be deemed to be illegal from the date on which it is effected and the workman shall be entitled to all the benefits that are available to him under the law. Section 25Q specifies that any employer who contravenes the provisions of Section 25N shall be punishable with imprisonment up to one month or fine up to Rs.1000 or both.

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1.13 :- Closure
Closure [Section 2(cc)]: means permanent closing down of a place of employment or part thereof. The provisions about closure are to be understood with reference to1) Type of service:- i.e., continuous service or not (same as layoff) 2) Number of workmen employed;a) No. of workmen less than 50 b) No. of workmen 50 100 c) No. of workmen 100 or more. The closure of an undertaking is subject to the restrictions imposed by the statutory provisions. Closure Rules and Provisions : Where number of workmen employed is less than 50 [Section 25 FFA & Section 25 FFF], if an undertaking is closed down for any reason whatsoever, every workman who has been in continuous service for not less than one year in that undertaking immediately before such closure shall be entitled to notice and compensation as if the workman has been retrenched. If the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation payable to the workman shall not exceed his average pay for three months. If an undertaking is set up for the construction off buildings, bridges, roads, canals, dams, or other construction work and it is closed down on account of completion of the work within 2 years from the date on which the undertaking is set up, then no workman employed by the undertaking shall be entitled to any compensation. In case the construction work takes more than 2 years for completion after it is set up, then the workman will be entitled to both notice and compensation as per the rules of retrenchment. Where number of workmen employed is more than 50, but less than 100 [Section 25 FFA]:1) The employer who intends to close down his undertaking shall have to serve at least sixty days notice in the prescribed manner on the Appropriate Government before the date on which the intended closure is to become effective. The reasons for the same have to be clearly stated. 2) No notice is required when:a) The number of workmen employed is less than 50, or b) An undertaking is set up for the construction of buildings, bridges, canals, roads, dams or for other such projects. c) The Appropriate Government is satisfied than; owing to exceptional circumstances like accident in the undertaking, death of employer or similar reason, no notice is required. d) The compensation payable is the same as if applicable to an undertaking employing less than 50 workmen.
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 Where the number of workmen is 100 or more [Section 25-O], an employer who intends to close down his undertaking shall apply to the Appropriate Government for prior permission, 90 days before the intended date of closure. Copy of this application should also be served on the representatives of the workmen in the prescribed manner. No such application to the Appropriate Government is required when the construction is the case of canals, bridges, buildings, etc. Workmen shall be entitled to compensation in case of a legal closure, at the rate of 15 days wages for every completed year of continuous service. Closure Penalties : Penalty for closure [Section 25R]:- Any employer who closes down an undertaking without complying with the provisions of Section 25-) shall be punishable with imprisonment up to six months or fine up to Rs.5000 or both. Penalty for closure without notice [Section 30A]:- An employer who closes down any undertaking without complying with the provisions of Section 25FFA shall be punishable with imprisonment up to six months or fine up to Rs.5000 or both. Any employer who contravenes an order refusing to grant permission to close down an undertaking under Section 25-O(2) shall be punishable with imprisonment up to one year, or fine up to Rs. 5000 or both. Where the contravention is continuing even then, with a further fine up to Rs.2000 for every day during which the contravention after conviction continues can be imposed.

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2.1 :- Introduction of the Company

Maruti Suzuki is one of the leading automobile manufacturers of India, and is the leader in the car segment both in terms of volume of vehicle sold and revenue earned. It was established in February, 1981 as Maruti Udyog Ltd. (MUL), but actual production started in 1983 with the Maruti 800 (based on the Suzuki Alto key car of Japan), which was the only modern car available in India at that time. Previously, the Government of India held a 18.28% stake in the company, and 54.2% was held by Suzuki of Japan. However, in June 2003, the Government of India held an initial public offering of 25%. By May 10, 2007 sold off its complete share to Indian financial institutions. Through 2004, Maruti Suzuki has produced over 5 million cars. Now, the company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. The Maruti 800 remained the largest selling compact car of India till 2004 since its launch in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling in A2 segment. More than half the cars sold in India are Maruti Suzuki cars. Maruti Suzukis are sold in India and several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983. Maruti Suzuki has two state-of-the-art manufacturing facilities in India. The first facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in North India. The Gurgaon facility Maruti Suzuki's facility in Gurgoan houses three fully integrated plants. While the three plants have a total installed capacity of 350,000 cars per year, several productivity improvements or shop floor Kaizens over the years have enabled the company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities. The entire facility is equipped with more than 150 robots, out of which 71 have been developed inhouse. More than 50 per cent of our shop floor employees have been trained in Japan.

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2.2 :- About the Plants

1) Gurgaon Facility: 300 acres capacity 700,000 cars/ annum Assembly plants 1,2,3 Engine plants F, G and new K series

2) Manesar Facility: 500 acres capacity 300,000 cars/ annum Assembly plant 4 Diesel Engine Joint venture SPIL capacity 200,000 units/annum Suppliers Park: 100 acres Total Capacity One Million Cars

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2.3 :- Products of the Company

Product Portfolio A1 & A2

Product Portfolio A3

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Product Portfolio B & C

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2.4 :- An overview on Strike in Maruti Suzuki India Limited

Maruti Suzuki, the countrys largest car maker, has toughened its stand against the protesting workers at its manesar plant in Haryana and terminated the services of 11, who are allegedly inciting the workers, with immediate effect. The action was taken even as the management is holding discussions with the workers to stop the agitation. Chairman R. C. Bhargava said the strike was illegal and the company had imposed no work no pay principle from today. The strike is illegal. The workers had not gives any notice to the management. Also, those two have applied for registration of a new union, which is separate from that of the Gurgoan plant, did not receive permission or were registered. The 2,500-odd workers at the Manesar plant, who struck work from Saturday evening, are demanding the recognition of a new union-Maruti Suzuki Employees Union (MSEU). The union is independent of the present one including workers of the Gurgaon plant. V. L. Sachdeva, secretary AITUC (All India Trade Uinon Congress), which is backing the strike said, The new union applied for a registration to the registrar of trade unions on Friday. The next day, Marutis management asked its workers to signn an undertaking that they will not be a part of the new union. We do not want the management interfering in our matters. We have met the labour minister and the labour commissioner. There is every likelihood that agitation will increase if demands are not met. Sources said that senior management at Maruti Suzuki planned to meet labour department officials on the issue. He said the management was willing to offer sops to ensure that the agitating workers returned to work. The Maruti union will hold elections next month. I am sure they can show their strength there. They can air their grievances there, he said. Bhargava said the management was willing to look at a separate institutional mechanism to address the special concerns of the Manesar workers, independent of the Gurgaon plant. However, the management is trying to convince the workers that a politically.- affiliated union is counter-productive for workers as it is followed by multiple other other unions with allegiance to other parties being formed. One strong union is much better than multiple unions, which only helps the management. That is what we are trying to convince them, said a key executive involved in the talks with the workers. Business Standard Dated : 07-06-2011

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Maruti to start work at 2nd plant in Manesar The standoff between the management and workers at Maruti Suzukis Manesar plant continued on Thursday with workers of other automobile firms in neighborhood coming out in support of workers locked out of the factory premises. The company management remains tough on its stand of not allowing workers to enter the premises unless they sign the goodconduct bond. The company rolled out 100 cars on Thursday, said a Maruti spokesman. However, only 60 of the 1,600 workers in Manesar have signed the good-conduct bond. The production loss to the company stretches to about 4,500 cars this week in addition to the 2,000 last week. This entails a production loss of about Rs 325 crore. We may commence operations at our second Manesar plant in a day or two. Since we are short of manpower at this stage, starting operations at the second plant will be a shot in the arm for us, the spokesman said. Maruti had originally planned a capacity addition of 300,000 units with an investment of Rs 1,700 crore in Manesar by September-end, taking its annual capacity to 1.5 million units in 2011-12. Shiv Kumar, head of Maruti Suzuki Employees Union, claimed that though workers were willing to discuss the bond with the management, the latter was reluctant to talk. At least 30-35 unions across Gurgaon-Manesar belt have come in our support today and more will join us tomorrow. The company has locked us out, were not on strike, he said. Will not start full production until workers sign bond: Maruti September 6, 2011 Maruti Suzuki India (MSI) today said it would not resume full-scale production at its Manesar plant till workers sign a 'good conduct bond'. The condition has been placed by the company to ensure there is no repeat of quality issues that have surfaced at the plant. "We can't start full production till the workers are ready. They have to sign the bond," MSI Chairman RC Bhargava said here on the sidelines of the Automotive Component Manufacturers Association's (ACMA) annual convention here. Labour problem at Manesar is a political issue: Maruti Suzuki September 8, 2011 Terming the labour problem at its Manesar plant as a "political issue", car-maker Maruti Suzuki India today said it will not compromise on its established norms for industrial relations while attempting to resolve the disturbance. "My understanding is that the Manesar labour problem is essentially a political issue and not a problem which involves any significant demand from the workers," Maruti Suzuki India (MSI) Chairman R C Bhargava said at the company's 30th Annual General Meeting here. Since it is a political problem, its resolution will be based on Maruti's established principles for industrial relations, he added. "We do not intend to compromise on that. We have been talking to the workers and we have made it clear to them that we will not compromise," Bhargava said.

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The company, however, expect to sort out the issue at the earliest possible, he added. Production has been severely hit at the first plant in Manesar since August 29 when the management prevented workers from entering the unit without signing a 'good conduct bond' after alleged "sabotage" and deliberate quality compromise on cars. The workers, however, said the management was taking the steps in "revenge" for a 13-day strike in June demanding the recognition of a new union -- the Maruti Suzuki Employees Union (MSEU) -- at the plant located in Haryana. During the first two days of the stand-off, MSI dismissed five permanent workers. In addition, it suspended 26 permanent workers and discontinued the services of another 18 trainees on charges of sabotage and causing quality problems in cars. The plant has a total of about 2,500 workers, of which 950 are regular employees. On average, the firm produces about 1,200 units of its Swift, A-Star and SX4 cars every day from the plant, where the labour troubles are centered. Although limited production is going on, the loss suffered by MSI since the trouble surfaced is estimated at about 8,550 units, valued at about Rs 425 crore, as of September 7. Earlier, in June, a 13-day strike demanding the recognition of the MSEU at the Manesar plant crippled output, with the company witnessing a production loss of 12,600 cars, valued at about Rs 630 crore. Commenting on the domestic market situation, Bhargava said there has been a slowdown due to the cyclical nature of the automobile industry, which has been compounded by high interest rates and fuel prices. "In the festive season, the market should move up and next year, it will be much better," he added. Maruti not compromising in Manesar labour issue
September 9, 2011

Automaker Maruti Suzuki will not compromise on discipline demands that have led to 12 days of employee unrest at one of its factories, its parent's chairman said on Friday, suggesting no immediate breakthrough in negotiations. "No compromise on discipline," Osamu Suzuki, chairman of Japan's Suzuki Motor Corp., which owns 54.2 percent of Maruti, was quoted as saying in a Maruti statement. "Indiscipline is not tolerated... not in Japan, not in India. It is never in the interest of any company and its people" Production at Maruti's Manesar plant in north India has been severely hit since workers walked out on Aug. 29 after the firm dismissed some workers "for sabotaging the production and deliberately causing quality problems" and demanded that all workers sign a "good conduct bond". Maruti has so far sacked 21 workers from the plant; the statement said which is currently producing only 200 cars per day from a maximum capacity of around 900, contributing to an overall slide in Indian car sales.

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Maruti to hire 100 new workers for troubled Manesar plant

September 13, 2011

Maruti Suzuki India (MSI) said it would hire 100 new permanent employees today for its troubled Manesar plant to replace those who have refused to sign the good conduct bond. "Up to 100 new permanent workers will be recruited today," a company spokesperson said, adding so far 103 existing workers have signed the bond and resumed duties. With the standoff between the management and labour that started on August 29 continuing, the company had brought in 50 ITI-trained and experienced workers yesterday at the plant taking the total workforce to 1,100 people. MSI has about 2,500 workers the Manesar plant, out of which nearly 1,000 are permanent. The management has refused to budge from its stance that it "will allow only those workers to resume duties at Manesar plant who will sign the Good Conduct Bond." The standoff started last month when the management prevented workers from entering factory premises unless they signed the bond, after allegations of sabotage and deliberate compromise on the quality of cars being produced surfaced. The bond required the workers to declare that they would "not resort to go slow, intermittent stoppage of work, stay- in-strike, work-to-rule, sabotage or otherwise indulge in any activity, which would hamper the normal production in the factory". During the first two days of the stand-off, MSI dismissed five permanent workers. In addition, it suspended 26 permanent workers and discontinued the services of another 18 trainees on disciplinary grounds. Before the problems with workers erupted, the Manesar plant was rolling out about 1,200 units a day of its models, including Swift and SX4. Maruti labour unrest takes violent turn, 5 injured in attack September 15, 2011 The labour unrest at Maruti Suzuki India's Manesar plant took a violent turn today when a group of supervisors were attacked on their way to work, with five of them sustaining injuries. According to the police, Dhiraj Soni, a worker at the Manesar plant of the company, has been detained in relation to the incident. "A medical examination of two injured employees is being carried out now and an FIR will be filed after that," a police official told PTI. Another three supervisors that sustained injuries in the attack were admitted to Artemis Hospital here and later discharged after first aid, the police said. In a statement, the company condemned the attack on its supervisors, saying, "This was another desperate action by the striking workers, using violence and fear." "By such violent acts, the striking workers have polluted the environment in Manesar. Such actions are damaging for the industrial climate in the Manesar belt. This will destroy jobs and prosperity in the region," it said. The incident took place this morning when a group of 11 supervisors were stopped on their way to work by a group of people near the factory of Honda Motorcycle and Scooter India's Manesar plant and were allegedly attacked. Representatives of the agitating workers at MSI's Manesar plant could not be reached for comments, as repeated calls remained unanswered. The MSI management and workers have been locked in a standoff since August 29, when the management prevented workers from entering the factory premises unless they signed a 'good conduct' bond, after alleged sabotage and deliberate compromise on the quality of cars being produced.
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The bond required the workers to declare they would "not resort to go slow, intermittent stoppage of work, stay- in-strike, work-to-rule, sabotage or otherwise indulge in any activity, which would hamper normal production in the factory". In support of their colleagues at MSI's Manesar plant, workers at three factories operated by two of Japan's Suzuki Motor Corp's subsidiaries located in the Gurgaon-Manesar industrial belt -- Suzuki Powertrain India Ltd and Suzuki Motorcycle India Pvt. Ltd. -- have been on strike since yesterday afternoon. Maruti Suzuki to stop production on Friday as strike spreads September 16, 2011 Maruti Suzuki, India's top car maker; will cease production on Friday due to unrest at its Suzuki-owned engine supplier, the company said in a statement, as an 18-day long standoff with striking workers brings its factories to a halt. Production at Maruti's Manesar factory, where it makes its popular Swift model, has been severely hit since workers walked out on Aug. 29 after the firm demanded they sign a discipline agreement, claiming some had engaged in sabotage. The company will close its two factories on Friday after the unrest spread to Suzuki Powertrain, 70 percent owned by Suzuki, which supplies around 300,000 diesel engines a year to the car maker from its India plant. "Following the strike at its vendor, Suzuki Powertrain India Limited, supply of certain critical components to Maruti Suzuki's facilities has been disrupted," Maruti said in a statement on Thursday. "As a result, Maruti Suzuki's plants in Gurgaon and Manesar will not operate on Friday, Sept. 16." Maruti, 54.2 percent owned by the Japanese car maker, has vowed it will not compromise with the workers who are refusing to sign a "good conduct bond", and has been steadily hiring new employees to bring the factory production closer to normal. Osamu Suzuki, chairman of Suzuki, had said last week that indiscipline would not be tolerated. The current stand-off at the factory, which on Wednesday produced around half of its total capacity of around 1,000 cars, comes as India's car industry grapples with slowing demand on high interest rates and rising costs. In June, about 800 workers went on a 13-day strike at the Manesar plant, in northern Indian Haryana state, leading to more than $90 million in lost output. Besides a second unit at Manesar to increase production by 250,000 vehicles a year, Suzuki is likely to build a $1.3 billion passenger car factory in Gujarat, Japan's Kyodo news agency reported. Shares in Maruti closed down 1.13 percent to 1,082.25 rupees ($22.72) on Thursday, following media reports that the strike was spreading to more suppliers, in a Mumbai market that added 1 percent.

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3.1 :- Trade union Solidarity for Maruti workers

A day after the Haryana government banned the strike by 2,000 workers at carmaker Maruti Suzukis Manesar facility, trade unions from across political parties strongly condemned the order. The CPI-backed All India Trade Union Congress(AITUC) met Haryana chief minister Bhupender Singh Hooda on Saturday to appraise him of the situation on the ground. The trade union was represented by its general secretary Gurudas Dasgupta and national secretary DL Sachdev. Along with Gurudas, we met the Haryana CM. Before the meeting, we had discussed all existing issues with the workers and put forth their demands once again to the government. The ban order reflects the failure of the government to mediate and find a solution to the problem, Sachdev told FE. He said that a proposal was also mooted to the CM to have a joint meeting between the minister of State for labour and employment in Haryana, Shiv Charan Lal, and workers; representatives. The Financial Express Dated : 12-06-2011 The struggle of workers at Maruti Suzukis Manesar plant has exposed the blatant complicity of the state in facilitating capital to extract huge profit margins by abuse of contract labour laws, relentlessly exploitative work conditions and above all by the suppression of constitutionally guaranteed freedom of association and democratic right to collective bargaining. The Government of Haryana has allowed the flagrant violation of democratic rights of the workers including the illegal lockout imposed by the Maruti Suzuki management at the Manesar plant while it has rejected the application for registration of the union on flimsy grounds. With the signing of the tripartite settlement that included a good conduct bond on 1 October 2011, the Maruti Suzuki management agreed to take back all workers except the 44 regular workers who were summarily dismissed. But two days later when workers came to the factory gate to rejoin work, the management refused to allow the contract workers into the factory, who supported the illegally locked out regular workers of the Maruti Suzuki Manesar Plant, to resume work, in complete violation of their own agreement. Also in a bid to speed up production, Maruti Suzuki has introduced a brutal work regime at its Manesar plant which includes a punitive system of fines for lateness and absences for the regular workers who joined work. The Maruti Suzuki management has also got away with the imposition of the no work no pay norm along with an additional days wage cut on the workers as a punitive fine for the actions. In a clear demonstration of its readiness to unleash violence on behalf of Maruti Suzuki, the Government of Haryana deployed 1,500 police on 14 October to break a week-long occupation by the regular workers of the Manesar plant. The class action against the workers struggle of the Maruti Suzuki management was clear from the fact that they were ready to let the company slip in the light of the united solidarity action of all Suzuki workers in Manesar. Even the local community support in the industrial belt of Gurgaon- Dharuhera Manesar could not force the Government of Haryana to enforce the principle of no victimisation against any worker and to reinstate all workers.

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The unwillingness of the Government of Haryana to protect workers rights is evident in the lack of recognition of the unfair labour practices committed by the Maruti Suzuki management. There is also no recognition that workers have collectively lost over Rs 10 crores in wages through the length of the illegal lockout imposed by the Maruti Suzuki management. Unfortunately, the erstwhile leadership of the Maruti Suzuki Employees Union had no strategy for mobilizing the working class as an independent political force to defeat the lineup of the state government, police and judiciary supporting Maruti Suzuki. The three rounds of industrial action and then the golden handshake to the leadership to break the spine of the struggle has reinforced the unequal balance of force. That the remaining workers remain united in their demand for an independent union and reinstatement and regularisation of contract workers is reflective of the depth of militancy amongst the working class that must be defended and advanced. At this moment, except for few nationwide actions, the trade union movement has shown a lack of shared understanding and effective strategy to make the workers struggle at Maruti Suzuki a decisive militant trade union battle to change the orientation of the labour policies of companies and government. In order to move forward and build support for the Maruti Suzuki workers, the trade union movement needs to build coordination both in this industrial belt and at the national level. The struggle of workers of Maruti Suzuki is a part of our common struggle for decent wages and working conditions and basic right to freedom of association and collective bargaining. This struggle requires the development of a movement of the working class that builds militant industrial action within the framework of a struggle against imperialist globalisation.
Trade union Solidarity for Maruti workers :

New Delhi, 22 September: Expressing solidarity with the protesting Maruti Suzuki (MSI) workers at Manesar, NTUI called upon all affiliates to observe a National Day of Action on 22 September against the ongoing deadlock since 29 August, when workers were prevented from entering the factory premises unless they signed a good conduct bond. MSI has dismissed 33 workers and suspended 29 since.

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Chapter 4 :- Conclusion
Human resource managers are well positioned to play an instrumental role in helping their organization achieve its goals of becoming a socially and environmentally responsible firm. HRM is the organizational function that deals with recruiting, managing, developing and motivating people. It also aims at providing functional and specialized support and systems for employee engagement and managing systems to foster regulatory compliance with human right standards. Human Resource Management is one of the most important as well as foundational elements that need to be in place to boost high growth of any organization. In their effort of forming and registering their own union, the workers of Manesar plant were making arrangements to file an application with the Haryana labour department. Learning about this the management, through its company officials started forcing the workers to sign an affidavit stating they were happy to be with Gurgoan union and dont want a new one. This attempt of the management to thwart the formation of their own union had naturally provoked them into an act of protest by way of strike of 4th June 2011. A day before the workers filed an application for registration to form their new union- Maruti Suzuki employees union-the management on 6th June summarily dismissed 11 workers on the allegation and charge of indiscipline and striking work. Four office bearers of the proposed union were among these dismissed workers. The strike of the workers went on till 16th July and ended. But the truce made between the workers and the management did not last long. With a grouse that the workers have raised to form a new union opposing its wishes, the management resorted to acts of victimization by way of falsely claiming and propagating that the reinstated 11 workers were flouting all shop floor norms at each bay, inciting the workers not to obey the supervisors and officials of the management etc. It had leveled false charges against workers and issued show-cause notices, and imposed pay cuts arbitrarily. It started a false propaganda that workers are adopting work slow tactics. By creating such a false background, the management of Maruti Suzuki on 29th Aug. had illegally lockout the factory and demand workers to sign a so called good-conduct bond. It had sacked 18 trainees and dismissed 44 regular workers on the false charge of sabotaging production and deliberately causing quality Problems. Thus the management chose to brand the workers as bad and undisciplined guys and to cover up its unfair, unethical and illegal acts of victimization of workers. Naturally the workers refused to sign such an illegal bond- a death warrant in practice. They were forced to sit outside the factory and to go in to strike as a protest. On the other hand the company hired new contract workers and with the help of supervisors and a few workers that signed the good conduct bond, started production. The management adopted an adamant stance to resolve the dispute. Moreover the management announced that it was not in the companys culture to tolerate indiscipline Not in Japan, Not India. So the strike continued for 33 days and ended by 1st October, by reaching in to an agreement, that the workers would sign the bond, the terminated 18 trainees would be reinstated and the dismissal of 44 regular workers will be treated as suspension pending enquiry. Accordingly when workers reported to duties on 3rd Oct, management had took only 170 contract workers and said the remaining would be absorbed in phases as the plant scaled up gradually to capacity. Workers felt that such a stance of the management was not only a violation of the October.1 agreement but also a deliberate move to victimize contract workers who had participated in their strike. Resisting this move of the management, the workers demanding restoration of the services of all the 1,100 contract workers and reinstatement of 44 workers that were presently under suspension/dismissal went in to a strike.
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Now the Haryana state government which has been siding all along with the management had declared the strike of workers as illegal. It blamed the workers for violating the October.1 agreement. On the other hand it sent police force to the plant site to protect it. The management has constructed a fencing around the plant premises, to disallow any worker to enter in; and also obtained a court order barring the workers entering within 100 meters of the vicinity of the premises of the Manesar plant. The Haryana government had served a notice on the workers on 7th Oct. for breach of agreement and again on 12th Oct. for having reneged on their commitment to the management. On the other hand the management with its so called rejoinders to the press had deliberately made false propaganda against the agitating workers and their supporters including the journalists who sympathized with the striking workers. The corporate media has obediently published all the false claims of the Maruti Suzuki obediently. At last the Maruti-Suzuki management after incurring a loss of production of 83,000 vehicles, and the workers unable to withstand the various types of attacks by the management, an agreement was reached on 14th October 2011; and the strike is ended by 14th Oct. 2011. In this settlement the workers were forced to give a good conduct bond as dictated by the Maruti Suzuki management-that too when the Haryana government is a party of the agreement. The irony of this entire episode is on 28-11-2011, the Central Labour and Employment Minister M.Kharge announced in the Lok Sabha that the demanding of good conduct bonds from workers as per conditions before allowing them to resume work is an arbitrary act and it also amounts to unfair labour practice. But however it is disclosed, after 10 days of the settlement of the strike/illegal lockout at Manesar plant of Maruti Suzuki, that the president Sono Gujjar and General Secretary Shiv Kumar of the newly formed union had quit the Maruti Company by taking a severance pay of Rs. 16 Lakh each, and resigned their jobs on 19th October itself even before reaching to the settlement agreement. The remaining 28 suspended workers also have resigned their jobs, having no choice but to resign and accept the managements offer as they were sure that the enquiry to be conducted in to the charges leveled against them will be in their favour. But though initially the workers of Manesar plant of Maruti Suzuki were shocked with this development, their general class awareness has led them to elect a new committee of the union and to run bravely their union in the direction of protecting their interests which is a positive sign. If this effort is directed by the understanding of working class politics and basing on the class politics, their future struggles will not be futile but really be successful in the larger interests of working-class of our country. Thus, the experience of Manesar plant workers of Maruti Suzuki warns us that unless the workers struggles are based on working-class politics and run with the orientation of class politics, they cannot withstand the attacks of big capital and win any success.

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