Maruti Manesar Episode

-Presented by Susheel

Loss-Loss Situation

Causes

Differences in salary pay

Working Conditions

Unions generally limit themselves to acting as a voice of permanent employees

Demand for a new union

Impact on Company

Operations stopped for a month.

Loss estimated to be over Rs. 1,500 crore

Fear of insecurity to the employees and their families

Problem of lack of labor resource

Maruti changed its recruitment policy

GOODWILL….

Impact on Economy

Large labor- unemployed

GDP affected

Loss of country resources

Disturbance- affecting the common man

Problems

• Lack of communication between HR people and labour

• Lack of coordination between labour union and HR department

For Managers….

• They have to Properly Co Ordinate with each other• Proper rules for indiscrimination in salary• They have to control the public pokers• They should try to understand the labour’s problem

Actually the problems lies with personnel Managers & HRD managers

These people take hefty salaries

These personnel managers are like Indian politicians, they want money but nobody else should get it!

Personnel Managers and Damagers

It is perhaps the socialist way of thinking. There is no real development.

Only the union is stronger and there is real work culture. This also should change

Why workers at Maruti's Manesar plant are disgruntled

Impact

They are negative trigger for existing companies and region

across the countries and also for prospective investors and job

seekers

Manesar’s outcome

o Plant was suspended

o Abolish contract basis

o Loss Rs 75 Core per day

Lesson’s learnt

o Policies

oDiscrimination between workers

o Late intervention by the government

Labour LawA minimum time rate of wages

A minimum piece rate

Non-Discrimination of people at Workplace.

Local Hiring

Leave without wages

Working hours, holidays and overtime

Labour Laws tweaked by Maruti

Enforcement of the Labour Laws was not followed strictly.

Labour laws need to be followed but only on humanitarian grounds.

Differences in Salary Pay.

Working Conditions.

Lack of proper negotiations.

Minimum wages.

Contract Labour

Companies hire temporary and contract workers not only because they are cheaper, but because they can be laid off when they are not required

Necessary changes done after the event.

Hiring contract workers through company HR and not through a contractor.

Reopened the plant with 300 workers

Fresh recruitment of permanent workers

Terminate the services of 500 permanent workers. (Involved in Violence)

Employee Labour Relationship should had been maintained in decorum.

Flexibility is the key, not the cheapness.

Treat workers in the factory like humans.

The workers should refrain from taking law into their own hands.

What could had been done in order to avoid the event