Introduction

Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd), is India's largest passenger car company. It is engaged in the business of manufacturing, purchase and sale of motor vehicles and spare parts

(automobiles).
It has 4 plants, three located at Palam (Gurgaon)and one located at Manesar Industrial Town, Gurgaon,

Haryana.

03-09-2012

 The company was incorporated on February 24, 1981 as a government company, with Suzuki as a minor partner,

to make a people's car for middle class in India.

On October 2, 1982, the company signed a license and joint venture agreement with Suzuki Motor Corporation, Japan. In the year 1983, the company started their productions and launched Maruti 800.

03-09-2012

 In 1992, Suzuki increased their stake in the company to 50%. In 1995, the company started their second plant and,in 1999, the third plant with new press, paint and assembly shops became operational.

During the year 2006-07, the company commenced

operations in the new car plant and the diesel engine facility at Manesar, Haryana.

03-09-2012

Timeline of Disharmony
1st strike: 4th June to 17th June 2011

Reasons:
Wage parity Recognition of a new union Consequences 2,000 workers stopped work and remained in factory

and Eleven workers officially dismissed

Strike postponed the production of 13,200 cars ,sales dropped by 23% compared to last 2 years.
03-09-2012 5

2nd strike: July 28, 2011 and 33 day lock out Reasons:
5 workers suspended for "allegedly assaulting a
supervisor" . 100 strike breakers hired to replace workers who

have refused to sign the good conduct bond.

Consequences Haryana company. 50% production cut.
03-09-2012 6

government

declares

support

for

the

3rd Strike: 7th Oct- 19th Oct 2011 Reasons: Dispute on non-inclusion of casual labourers by the management Consequences:

Production delay of 51,000 cars which translated to

loss of worth Rs 1500 crore. Union Leaders resign and dessert striking workers

Sales at Indias largest car maker fell 17% to 66,667

units in September from 81,060 units a year earlier.

03-09-2012

VIOLENCE AT MANESAR
Where ? Manesar Car plant(Unit B) Why ? Objectionable Casteist comments by a supervisor to a worker led to the unrest. When? 18th July 2012

03-09-2012

D-Day Events
8:40 am- Ram Kumar Majhis (Supervisor) altercation with workers. 9:00 am- Jiya lal (Worker) complains against Casteist comments by supervisor ,physically assaults Majhi

11:00 am- Vice President,HR(C.S.Raju) called in for

consultation on indiscipline situation at the plant. 1:00pm- Jiya Lal suspended for indiscipline, Union reacts 2:00pm to 6:00 pm- Negotiations with workers begin
03-09-2012 9

3:00pm-Unions ask morning shift laborers to stay back 4:00 pmPolice Informed about situation, Police

promises to send in 60 cops for protection

6:00 pm- Unions leaders unhappy with the negotiations pull out

7:00 pm Chaos begins after

ruckus of closing the plant down

Union Leaders raise

03-09-2012

10

03-09-2012

11

03-09-2012

12

03-09-2012

13

03-09-2012

14

03-09-2012

15

Consequences
Workers at the plant attacked senior officials with iron rods, wooden sticks and unfinished car parts. One person killed and over 85 injured in the violence. Production has been stopped and company has

announced a lockout.
The lockout is costing the company nearly Rs. 80 crore a day. . Rs 500 Crore in plant damages reported.

03-09-2012

16

 Mr. Awanish Dev(GM-HR) burnt alive completely by the attacking mob.

More than 45 Executives hospitalized.

SIT, headed by Assistant Commissioner of Police Ravinder Tomar and six Inspector ranked officials, will probe the incident.

03-09-2012

17

Rationale for Disharmony

Continuing and increasing discontent Aggressive Trade Unions Strict provisions implemented to regulate activities of trade unions Imbalance in Work force( Permanent vs Contract) Issue of Wage parity

Managements lack of commitment and casual attitude

in redressing worker related issues.
03-09-2012 18

Current Developments
All 10 Union Leaders have been arrested

Lock out Continues

Conspiracy angles being investigated 97 workers arrested till date Management in consultations with astrologers for re aligning the plant as per vaastu Consultations with various HR heads in process for

developing a long standing solution to the problem.

03-09-2012

19

THANK YOU

03-09-2012

20