Maruti unrest

19-06-2013 GBE- MARUTI UNREST GROUP !1 1

• Maruti Suzuki India Limited, is a subsidiary company of Japanese automaker Suzuki Motor Corporation.

• Has two manufacturing facilities located in Gurgaon and Manesar

• It has a market share of 44.9% of the Indian passenger car market as of March 2011.

• 1st October, 2012 Maruti Suzuki India Limited sold a total of 93,988 units in September 2012.

• Key people: Shinzo Nakanishi -CEO & MD

RC Bhargava -Chairman


COMPANY INTRODUCTION

REASON FOR UNREST

• The plant workers wanted to register a new union—the Maruti Suzuki Employees Union (MSEU)—and had already applied for registration, something the management was opposed to.

• More than 90 percent of these are contract workers who work for 10-12 hours for 4000-5000 per month. The workload and speed is extremely high and they have to face verbal abuse and even beatings by the supervisors and security guards.


MANESAR VIOLENCE JULY 2012


WORKERS DEMANDS:

•A five-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, and a

house for every worker who wants one or

cheaper home loans for those who want

to build their own houses.

•In addition to this compensation and

normal weekend/holidays, the union

demanded the current four paid weeks of

vacation be increased to 7 weeks.

PROBLEM FROM WORKERS VIEW POINT

• “If the floor supervisor is rude and even slaps us, he is awarded with a promotion but in case a labourer dares to reply, he is issued a notice on grounds of disciplinary action," said Rajender Kumar, a technicianRevenge for June's strike.

• Cockroaches and dead flies found in the food in the hurried lunch-break that workers earn in the canteen ½ km from the working station.

• The tea was without tea leaves or sugar in the 7 minute break • The company doctor give heavy doses of ‘instant’ medicines even on

minor complaint so that disruption of work could be prevented. • One day’s wage cut of Rs.1500, two days Rs.2200, three days cut of Rs.7-

8000 is implemented, so that almost the total month’s wage is cut. • One second late into punching-card entry is a day’s wage cut, but they

have to give full production for that day too. • Forced to fill an undertaking form, which means that in case of any

problem, workers cannot raise any objections against management.


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•Shares of Maruti fell as much 6.1% after the company declared the lockout. They closed 5.65% lower at 1,079.90 rupees, underperforming a 1.6% decline in the main index. •In Tokyo, Suzuki shares fell 3.94% to 1,366 yen in a market down 1.86%. •Maruti’s net profit fell 29% to 16.35 billion rupees ($295.6 million) in the year ended March 31 • Its vehicle sales fell nearly 11% to 1.13 million units.

OUTCOME OF THE STRIKE


WHAT MARUTI COULD HAVE DONE

SCOPE FOR FURTHUR STUDIES

• 580 WORKERS SACKED AND 110 are behind bars who were involved in the violence.

• 15 legal trade unions have been set up for all the 9 plants.

• The company has made a 49% salary hike.

• 800 robotic workers by 2015

• New plants to be set up in Ahmedabad


REFERENCES

• http://www.ft.com/intl/cms/s/0/bf331684-d15e-11e1-bbbc-00144feabdc0.html#axzz2AlKpPNsi Assessed on 30 Oct at 2pm.

• http://www.firstpost.com/business/lockout-maruti-wants-to-talk-but-workers-have-disappeared-386072.html Assessed on 30 Oct at 2pm.

• http://zeenews.india.com/exclusive/peace-at-manesar-temporary-or-permanent_5212.html Assessed on 30 Oct at 2pm.


http://www.ft.com/intl/cms/s/0/bf331684-d15e-11e1-bbbc-00144feabdc0.html









http://www.firstpost.com/business/lockout-maruti-wants-to-talk-but-workers-have-disappeared-386072.html



















http://zeenews.india.com/exclusive/peace-at-manesar-temporary-or-permanent_5212.html











Maruti unrest

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