The MARUTI ManesarDispute

Prepared By:

Nikita Balar (04)Jignesh Soni (32)Bhavin Agrawal (02)Nitin Madhvi (28)

Introduction

Maruti Suzuki India Limited is an automobile manufacturer in India, established in 1982 and headquartered in New Delhi.

Suzuki Motor corporation of Japan holds a majority stake in the company.

It was the first company in India to mass-produce and sell more than a million cars.

Recently, 18.28% of the company is owned by the Indian government, and 54.2% by Suzuki of Japan.

Maruti Suzuki has 200-odd vendors.

http://www.marutisuzuki.com/company-at-a-glance.aspx

Products

Maruti 800Maruti AltoMaruti Grand Vitara XL-7Maruti Gypsy KingMaruti OmniMaruti Suzuki SX4Maruti SwiftMaruti VersaMaruti VitaraMaruti Wagon-RMaruti Zen

http://en.wikipedia.org/wiki/Maruti_Suzuki

Manesar DisputeThe Manesar manufacturing plant was inaugurated in February 2007 and is spread over 2.4 km2 ,production capacity of 100,000 vehicles annually initially.

On 18 July 2012, Maruti's Manesar plant was hit by violence.

As workers attacked supervisors and started a fire that killed a company official and injured 100 managers, including two Japanese expatriates.

The company's General Manager of Human Resources had both arms and legs broken by this attackers.

The incident is the worst-ever for Suzuki since the company began operations in India in 1983.

http://zeenews.india.com/exclusive/peace-at-manesar-temporary-or permanent _5212.html

Causes

Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly conveyance allowance of 10,000, a laundry allowance of 3,000, a gift with every new car launch.

As well as a house for every worker who wants one or cheaper home loans for those who want to build their own houses.

http://en.wikipedia.org/wiki/Maruti_Suzuki

Causes:

Workers claimed about harsh working conditions.

Extensive hiring of low-paid contract workers which are paid about Rs.7500 per month, about half the minimum wage of permanent employees.

Differences in salary pay and no incentives for hard work.

Supervisor had abused and made discriminatory comments to a low-caste worker who was suspended.

http://www.revolutionarydemocracy.org/rdv17n2/maruti.htm

Impact on Company

Operations stopped for a month

Loss estimated to be over Rs. 1,500 crore

Problem of lack of labour resource

Maruti changed its recruitment policy

Goodwill

Lost interest of investors and job seekers

Plant was suspended

Loss Rs 75 cr per day total loss of Rs 500 cr as more than two-thirds of the employees were involved in the strike

Fear of insecurity to the employees and their families

http://www.hindustantimes.com/autos/htauto-topstories/maruti-back-in-business-manesar-plant-reopens/article1-917055.aspx

Impact on Economy

Large labour- unemployed

GDP affected

Loss of country resources

Disturbance- affecting the common man

http://articles.economictimes.indiatimes.com/2012-08-07/news/33083609_1_manesar-plant-japan-s-suzuki-motor-dzire

ProblemsLack of communication and coordination between HR people and labour

Lack of coordination between managers

Proper rules for indiscrimination in salary

They should try to understand the labour’s problem

http://en.wikipedia.org/wiki/Maruti_Suzuki

Continue…

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

Actually the problems lies with personnel Managers & HRD managers

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

These people take hefty salaries

http://en.wikipedia.org/wiki/Maruti_Suzuki

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

Fresh recruitment of permanent workers.

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

Haryana Government supported the company and declared it as illegal strike.

Reopened the plant with 300 workers.

http://www.wsws.org/en/articles/2011/09/indi-s22.html

What could be done in order to avoid the event?

Employee Labour Relationship should had been maintained in manners

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

Present scenario The Manesar plant achieved the 25 lakh production milestone in September 2014.

The plant manufactures some of the top selling models like Swift, Dzire.

Spread over 600 acres, the Manesar facility houses three units, Manesar A, B and C with total annual capacity of 8,00,000 vehicles.

Gandhi said: "While we achieve the milestone, we have successfully implemented several ideas from the employees on the important production pillars of productivity, cost, quality and safety."

http://articles.economictimes.indiatimes.com/2014-09-16/news /53983059_1_ manesar-plant-manesar-facility-milestone