maruti case study 2 (2)

8/2/2019 Maruti Case Study 2 (2)

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INTRODUCTION

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of

Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for over twoand a half decades. The company has two manufacturing facilities located at Gurgaon and

Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce

over a 1.2 million (1,200,000) vehicles annually.

The company plans to expand its manufacturing capacity to 1.75 million by 2013.

The company offers a wide range of cars across different segments. It offers 15 brands and over

150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10, A-

star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift

DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced

factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo,

Wagon R and Sx4.

In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One

Million car in a year

Maruti Suzuki has employee strength over 8,500 (as at end March 2011)

In 2010-11, the company sold over 1.27 Mn vehicles including 1,38,266units of exports. With this,

at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the Indian

passenger car market.

Maruti Suzuki's revenue has grown consistently over the years. (Rs. in Million)Year Net Sales Year Net Sales2005-06

2007-08

2009-10

1,20,034

1,78,603

3,01,198

2006-07

2008-092010-111,45,922

2,03,5833,61,282

VISION AND CORE VALUESWe believe our core values drive us in every endeavour.

Customer obsession. Fast, flexible and first mover. Innovation and creativity. Networking and partnership. Openness and learning.


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EXPORTSMaruti Suzuki exports, entry-level models across the globe to over 120 countries and the focus has

been to identify new markets. Some important markets include Latin America, Africa, South East

Asia and Oceana.

The Company clocked its highest ever exports at 147,575 units, a growth of 111% in the Fiscal

Year 2009-10.

The star performer has been A-Star which is also the fifth World Strategic Model by Suzuki.

A-star, as a Made-in-India car, represents Maruti Suzuki aspirations as an Indian company to

emerge as a global hub for manufacturing and exporting small cars. Alto and M800 are the other

most popular models in the overseas market. Joining the team of growth drivers is our latest launch

Alto K10.

Milestones:1. MSIL Receives Gold Trophy for "Top Exporter for the Year 2008-09" for the Northern region.

2. The Company clocked its highest ever exports at 147,575 units, a growth of 111% in the Fiscal

Year 2009-10.

3. The world loves Alto - more than 2 million units sold

4. A star crosses the 2 million mark in just three years

Car Models

1. 800 (Launched 1983)2. Omni (Launched 1984)3. Gypsy(launched 1985)4. WagonR(Launched 1999)5. Alto (Launched 2000)6. Swift(Launched 2005)7. Estilo (Launched 2009)8. SX4 (Launched 2007)9. Swift DZire (Launched 2008)10.A-star (Launched 2008)11.Ritz (Launched 2009)12.Eeco (Launched 2010)13.Alto K10 (Launched 2010)14.Maruti Ertiga, seven seater MPV R3 designed and developed in India, will compete with

Toyota Innova, Mahindra Xylo, and Tata Sumo Grande.]In early 2012, Suzuki Ertiga will

be exported first to Indonesiain Completely Knock Down car.

15.Maruti XA Alphawill be launched in the year 2014.
http://www.altok10.com/http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_MR_Wagon#First_generationhttp://en.wikipedia.org/wiki/Maruti_Suzuki_SX4http://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/w/index.php?title=Maruti_Alto_K10&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_Alto_K10&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_Ertiga&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_Ertiga&action=edit&redlink=1http://en.wikipedia.org/wiki/Toyota_Innovahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/w/index.php?title=Maruti_XA_Alpha&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_XA_Alpha&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_XA_Alpha&action=edit&redlink=1http://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Toyota_Innovahttp://en.wikipedia.org/w/index.php?title=Maruti_Ertiga&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maruti_Alto_K10&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Maruti_Suzuki_Swift_DZirehttp://en.wikipedia.org/wiki/Maruti_Suzuki_SX4http://en.wikipedia.org/wiki/Suzuki_MR_Wagon#First_generationhttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_WagonRhttp://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_800http://www.altok10.com/


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ImportsSuzuki Grand Vitara

1. Grand Vitara(Launched 2007)2. Kizashi (Launched 2011)

Discontinued car models1. 1000 (19901994)2. Zen (19932006)3. Esteem (19942008)4. Baleno (19992007)5. Zen Estilo (20062009)6. Versa(20012010)7. Grand Vitara XL7(20032007)
http://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Maruti_1000http://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Esteemhttp://en.wikipedia.org/wiki/Maruti_Balenohttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/Suzuki_XL7http://en.wikipedia.org/wiki/Suzuki_XL7http://en.wikipedia.org/wiki/Suzuki_XL7http://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Balenohttp://en.wikipedia.org/wiki/Maruti_Esteemhttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_1000http://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Grand_Vitara


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of A shift were invited inside the office and were made to sign a document.

According to the employees they were not informed about the content of the

document signed by them.

Though the management is trying to negotiate the issue with employees, but the

discussions are yet to arrive on a solution.

Company management has maintained that there has been a slight misunderstanding

on the issue, and efforts are underway to solve the queries. A senior executive of the

company has denied the allegations of locking up staff members in the office.

Maruti sacks 11 striking employees(06th June) :New Delhi: Car maker Maruti Suzuki India on Monday removed 11 employeesfrom its Manesar facility, which has been crippled by a strike since Saturday.

"The services of 11 persons, who were inciting workers to go on an illegal strike and

created an atmosphere where safety of people was in danger, have been terminated,"

Maruti Suzuki India (MSI) Chairman R C Bhargava said.

He said the workers had gone on strike without any notice but added the


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management is continuing the dialogue with the striking workers.

Refusing to accept the worker's demand, Bhargava said: "There is no other union...

If they have any issue, they should have at first written to us and discussed with us".

He, however, said the company is hopeful of finding an amicable solution soon.

According to workers sources, the sacked employees include eight office bearers of

the newly formed union, Maruti Suzuki Employees Union (MSEU), besides three

other workers.

"We will resist any forcible move to evict those 11 people from the factory

premises... The strike will continue," an agitator said.

Meanwhile, production at the plant came to a complete halt and the company isestimated to have incurred a loss of about 1,200 units so far as the workers' strike

entered the third day.

"The situation remains the same as of now (as yesterday's)," a company spokesperson

said.

The strike comes at a time when MSI has seen slowing down of sales in the recent

past as the auto industry grapples to overcome challenges of rising fuel prices and

interest rates.

In May, MSI's domestic sales grew by just 3.9 per cent to 93,519 units from 90,041

units in May, 2010.

On Saturday, about 2,000 workers employed at the plant struck work from the

second shift of the day.

Striking workers are demanding the recognition of a new union -- Maruti Suzuki

Employees Union (MSEU) -- formed by those working at the Manesar plant, besidesretaining contract labourers for the two upcoming new units inside the complex.

Refraining from any disciplinary action against the 11 office bearers of the new union

is another demand.


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According to senior officials of MSI, who wished not to be named, the company has

so far incurred a production loss of about 1,200 units till the first shift of operations on Monday.

Strike at Maruti's Manesar plant continues for the fourth day (7 th June) :New Delhi: Production continued to be completely affected as the strike by workersat the country's largest car maker Maruti Suzuki India's (MSI) Manesar plant entered

its fourth day on Tuesday.

"The situation is the same as of Monday," a company spokesperson said.

Around 2,000 workers at the plant had gone on strike since Saturday, resulting in a

production loss of about 1,800 units till yesterday and the value of the loss is

estimated to be around Rs 100 crore.

The Manesar plant rolls out about 1,200 units every day in two shifts. The factory

produces hatchbacks Swift and A-Star and sedans DZiRE and SX4.

The company's scrip was being quoted at Rs 1,223.20 per share at noon on the BSE,

down 0.71 percent.

Sales to hit if strike lingersMeanwhile Maruti Suzuki India has said its sales may be hit if strike at its Manesar

plant prolongs, while it has already incurred production loss of about 3,000 units till

the 4th day of stir by workers.

Even as the firm tries to find an end to the impasse, it received a shot in the arm

from Haryana Labour Commissioner who termed the strike as "unwarranted" and

also backed the company's decision to sack 11 employees.

"If the strike continues for a long time, it will affect our sales and will increase the

current waiting period of our diesel cars," Maruti Suzuki India (MSI) Chairman R C

Bhargava said.


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While diesel versions of Swift and DZiRE at present have a waiting period of 3-4

months, customers are waiting for up to one and half months to take the delivery of

SX4. The A-Star is MSI's flagship export model.

"Export is also likely to be impacted if the strike prolongs... The stalemate still

continues," Bhargava said.

The strike comes at a time when MSI has seen slowing down of sales in the recent

past as the auto industry grapples to overcome challenges of rising fuel prices and

interest rates.

In May, MSI's domestic sales grew by just 3.9 per cent to 93,519 units from 90,041

units in May, 2010.

Strike at Maruti's Manesar plant enters 5th day, management refuses tobudge(8th June) :New Delhi/Chandigarh: The country's largest car maker Maruti Suzuki India on

Wednesday hardened its stand against striking workers at its Manesar plant, saying itwill not accept their demands despite production loss mounting to an estimated Rs

210 crore on the fifth day of the stir.

Worried over the impact of the strike to the state's industrial sector, Haryana

government threw its weight behind the company terming the strike as

"unwarranted", even as the agitators offered to work overtime, including Sundays, to

make up for the loss if all their demands are accepted.

"When a union is not even registered, in today's condition how can we even think of

accepting their demands? There is no demand of the workers which we can accept,"

Maruti Suzuki India (MSI) Chairman R C Bhargava said.

The striking workers are demanding the recognition of a new union -- Maruti Suzuki

Employees Union (MSEU) -- formed by those working at the Manesar plant, besides

retaining contract labourers for the two upcoming new units inside the complex.


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They have also been demanding that no disciplinary action be taken against the 11

office bearers of the new union. The company has, however, sacked 11 workers,

including eight office bearers of MSEU and three other employees, for allegedly

inciting others to strike work.

Commenting on the ongoing strike, Haryana Industries Minister Randeep Singh

Surjewala said: "Maruti is the backbone of our industry. The strike is unwarranted,

even though the law gives the workers every right to form one more union".

Surjewala said the state government is closely monitoring the situation and will

ensure that it does not take the shape of an "industrial dispute".

Meanwhile, component suppliers hit by the strike sought intervention of the

government stating they have been forced to shut their factories due to inventory pile

up.

According to industry representatives, about 250 units which are supplying auto

components to Maruti's plant at Manesa have been affected by the strike.

On the fifth day, industry estimates put the value of production loss so far by MSI to

around Rs 210 crore.

"Strike is continuing...production is fully stopped. So far we have lost production of

about 4,200 units since Saturday," a company spokesperson said.

Taking note of the loss, the striking workers said they are willing to help the firm

recover the output deficit.

"If our all demands are accepted, we will make up the loss by working overtime and

on Sundays," MSEU President Sonu Gujjar said.

As the strike continued, the company's scrips closed the day at Rs 1,226.05 per

share, 1.18 per cent down on the Bombay Stock Exchange.

Strike enters sixth day at Maruti's Manesar plant (9th June) :The strike at Maruti Suzuki's plant in Manesar town of Haryana entered its sixth day

as talks between the workers and management failed to resolve the stalemate over


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the formation of a second workers' union.

Though the talks are going on, our stand is clear. The strike is illegal as no

intimation was given to us, said Maruti Suzuki India chairman RC Bhargava.

However, some government agencies, including Haryana's labour commission, were

supporting the management, he added.

According to him, the company had suffered a production volume loss of around

5,400 cars till Thursday, including 600 units on the first day of the strike Saturday.

The total loss has been pegged at around Rs.180 crore.

'Our losses are currently pegged at around 5,400 cars since Saturday,' he said, adding

that the halt in production will have a short-term impact.

'Currently, dealers have enough stock for some 28 days of petrol-segment cars, while

a short-term effect may be felt for some diesel variants, which in itself is only 20

percent of our entire portfolio,' he said.

The company's facility at Manesar produces the company's bestseller hatchbacks and

sedans like the Swift, Swift Dzire, A-Star and SX4.

The majority of the automobile giant's production takes place at its remaining three

plants in Gurgaon district.

According to another Maruti official, the strike has the support of around 2,000-odd

workers, out of whom 11 were sacked Monday for demanding recognition of a

separate workers' union.

Haryana bans strike at Maruti's plant, refers matter to Labour Court(10th June) :Chandigarh/Manesar: Lashing out at the workers for continuing the strike on theseventh day at Marutis Manesar plant, the Haryana Government on Friday imposed

a ban on the stir and referred the matter to the Labour Court.

Undeterred by the step, a panel of workers of various firms in the region, who have

been supporting colleagues at MSI's plant, said they will take up various actions,


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including dharna and rallies from Monday and would even consider going on strike

at their respective factories.

Meanwhile, MSI management welcomed the move by the state government and said

its stand that the strike by the workers is illegal has been vindicated.

In a statement, Haryana Minister of state for Labour and Employment, Shiv Charan

Lal Sharma, said the state government has passed orders "prohibiting the

continuation of the strike in the industrial unit (MSI's Manesar plant)".

Haryana Government has, under the provisions of Industrial Disputes Act 1947,

referred the matter of ongoing strike in Maruti Suzuki India by the workers to the

competent Labour Court, the statement said.

Explaning the decision, a senior official of Haryana Labour Department said, "Nooption was left with us except putting a ban (on strike) and referring the matter to

Labour Court as both the parties (striking employees and management) were

adamant on their respective stand".

"We welcome government's move. From the beginning we have been saying that the

strike is illegal and the government's step supports that position".

AITUC Gurgaon District Secretary Harjeet Grover, who is also the General

Secretary of Honda Motorcycle and Scooter India Employees Union, said the stir

would only intensify.

He said the joint committee comprising representatives of all trade unions and

various elected members from unions in different firms, including Hero Honda,

HMSI and Rico Auto has submitted a memorandum to the state government,

Deputy Commissioner's office and respective company managements, reiterating the

demand of the workers.

"We have given two days time to respond to the memorandum and from Monday

we will be taking up our next action, including dharna and rallies. We will alsoconsider holding strikes in our respective factories," Grover added.

Around 2,000 workers at MSI's plant here have been on strike since Saturday

demanding recognition of a new union -- Maruti Suzuki Employees Union (MSEU) -

- formed by those working at the Manesar plant, among other things.


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On the 7th day of the strike, total production loss reached 6,600 units at an

estimated value of Rs 330 crore. MSI scrips closed the day at Rs 1,229.75 per share

on the BSE, up 1.03 per cent from the previous close.

In a separate development, AITUC leaders Gurudas Dasgupta and D L Sachdev

met Haryana Chief Minister Bhupinder Singh Hooda in the morning seeking his

intervention to work out an amicable solution.

They will be meeting the Chief Minister again on Saturday.

With the stir prolonging, some of the striking workers have fallen ill. A worker

Yogesh Mahajan has been taken to the hospital following complaints of uneasiness

and weakness.

According to him, about 10 workers inside the plant have also fallen sick.

On the other hand, with the state government supporting it, MSI management is

understandably happy that its negotiating power has increased. It can even consider

imposing no work no pay condition, which could lead to pay cuts.

At the time of filing of this report, Gurgaon Deputy Labour Commissioner J P

Mann was inside MSI's plant holding negotiations with the striking workers and the

management.

Logjam at Maruti's Manesar plant continues for 8th day(11th June) :New Delhi: Even after been banned by the Haryana government on Friday, thestrike at Maruti Suzuki India's Manesar plant entered the eighth day on Saturday,

while the loss to the company mounted to about Rs 390 crore.

Intense negotiations were continuing with Gurgaon Labour Commissioner J P Mann

trying to bring an amicable solution to the impasse between the 2,000 strikingworkers and the management.

"The strike is continuing. The situation is same as yesterday... So far the total

production loss is around 7,800 units," a senior company official said.

As per industry estimates, the value of the loss is around Rs 390 crore.


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Meanwhile, All India Trade Union Congress leaders Gurudas Dasgupta and D L

Sachdev met Haryana Chief Minister Bhupinder Singh Hooda in the National

Capital for the second time in two days seeking his intervention for an amicable

solution.

"The Chief Minister responded positively and told us that he has asked his Labour

Minister and Labour Commissioner to resolve the matter," Sachdev said.

He said the Labour Department officials, who have been mediating, have sought

authorisation letter from the workers nominating representatives to negotiate on

their behalf.

Yesterday, the Haryana government imposed a ban on the strike and referred the

matter to a labour court. The move comes amid threats of the week-long stirspreading to the Gurgaon-Manesar industrial belt.

Undeterred by the step, a panel of workers of various firms in the region, who have

been supporting their colleagues at the Maruti facility, said they would take up

various actions, including dharnas and rallies from Monday, and would even

consider going on a strike at their respective factories.

Around 2,000 workers at MSI's plant here have been on strike since June 4

demanding recognition of a new union -- Maruti Suzuki Employees Union (MSEU) -

- formed by thoseworking at the Manesar plant, among other things. The Manesar plant rolls out

about 1,200 units every day in two shifts.

The factory produces hatchbacks Swift and A-Star and sedans DZiRE and SX4.

AITUC extends support to Maruti stir, calls tool-down strike on 12th JuneNew Delhi: Striking employees of Maruti Suzuki India's (MSI) Manesar plant onSunday got the support of All-India Trade Union Congress (AITUC) in the

Gurgaon-Manesar industrial belt, as the stir shows no signs of an end.

The AITUC has decided to hold a two-hour tool-down strike on Tuesday in support

of the striking colleagues at Maruti Suzuki India's (MSI) Manesar plant.


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According to sources close to tripartite negotiations between the company

management, striking workers and state government, MSI is understood to have

made it clear that it would not reinstate the 11 sacked workers.

The company, however, is understood to have proposed the formation of a

governing council of representatives of workers at its different plants that will also

take part in charting out company policy in order to avoid labour unrest in future.

"Public meetings will be held tomorrow at different factories in the Gurgaon-

Manesar belt. On Tuesday, there will be a two-hour tool-down strike in about 60-65

factories in the

region," AITUC Secretary D L Sachdev said.

Sachdev, along with AITUC General Secretary Gurudas Dasgupta, had met

Haryana Chief Minister Bhupinder Singh Hooda twice last week over the strike atMSI's plant.

Different workers' unions, including those from Hero Honda, Honda Motorcycle

and Scooter India and Rico Auto, have been supporting the strike at MSI's plant.

Around 2,000 workers at MSI's Manesar plant have been on strike since June 4,

demanding recognition of a new union--Maruti Suzuki Employees Union (MSEU) --

formed by those

working at the Manesar plant, among other things.

Cracking the whip, the company fired 11 workers for allegedly inciting others to go

on strike. Their reinstatement is also being demanded by the striking workers.

"The company has made it clear that there is no question of reinstating them," a

source said, adding that the no work-no pay policy would also be enforced, although

it would not necessarily strictly apply the eight days salary deduction for every day of

strike.

However, in order to avoid such labour unrest in future, the company has discussed

with the state government its plan to set up a governing council of workers that

would have members from all facilities across different plants.

"Each plant will have local unions and those will nominate representatives to the

governing council. The council will also take part in future company policies," the


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source said.

Immediate comments from the company could not be obtained.

On the eighth day of the strike yesterday, the loss to the company mounted to about

Rs 390 crore for 7,800 units. The factory is closed on Sunday. Meanwhile, Maruti

Suzuki Employees Union (MSEU) General Secretary Shiv Kumar claimed that the

company management has agreed to reinstate five out of the 11 sacked workers, but

the union is demanding that all of them be taken back.

"If they can take back five, why not all the 11? We are willing to end the strike if all

of them are taken back," he added.

On the issue of recognition of the union, Kumar said the management has informed

the workers that it could be considered.

Maruti Manesar plant strike enters 10th day, production stops(13th June) :The workerss strike at the country's largest car-maker Maruti Suzuki Manesar plant

entered 10th day with the facility shut down completely on Monday.

"The talks are going on, but the strike is still continuing. The production at the plant

is stopped," a company spokesperson said.

In the morning, shares of the company were trading 1.19 per cent down at Rs

1,215.15 apiece on the Bombay Stock Exchange.

Around 2,000 workers at the plant have been on strike since June 4, resulting in a

loss of about Rs 390 crore for the company on account of a 7,800-unit hit in output

till Saturday.

The factory had its weekly-off on Sunday.


Employees Union -- formed by those working at the Manesar plant, among other

things.

Cracking the whip, the company fired 11 workers last week for allegedly inciting


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others to go on strike.

Yesterday, however, the company said it is willing to recognise the new union -- the

main demand of the workers.

The workers also said they are willing to end the stir provided all 11 of their sacked

colleagues are reinstated.

Meanwhile, unions of various firms in the Gurgaon-Manesar industrial belt, who

have been supporting their colleagues at the Maruti facility, will hold public meetings

at the gates of 60-65 factories on Monday to raise awareness among workers in the

region about the issues at the car-maker's plant.

The All-India Trade Union Congress, which is leading the agitation along with other

unions such as the Centre of Indian Trade Unions, said workers in the region willhold a two-hour tool-down strike tomorrow in support of the strike.



Workers on two-hour-tool down strike in 65 factories(14th June) :New Delhi: In support of their colleagues at Maruti Suzuki Indias Manesar plant,

workers in up to 65 factories in the Gurgaon-Manesar industrial belt commenced atwo-hour tool-down strike on Tuesday morning as the strike entered 11th day.

"The situation is the same as Monday. The strike is continuing and production at the

plant is stopped," a company spokesperson said.

The All-India Trade Union Congress (AITUC), which is leading the agitation from

outside along with other unions such as the Centre of Indian Trade Unions (CITU),

said workers in the Gurgaon-Manesar industrial belt have started the two-hour tool-

down strike in support of Maruti's workers at the Manesar plant.

"The tool-down strike has started and about 60-65 factories' workers are taking partin it. If in a day or two, no solution comes out, workers will go on for a full-day

strike," AITUC Secretary D L Sachdev said.

CITU Haryana State President Satvir Singh said a meeting between the state

government officials, company management and workers is expected on Tuesday

and if nothing positive happens, "we will intensify our agitation".


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On Monday, a tripartite meeting between the government, MSI management and

striking workers failed as the company refused to accept any new union at the plant.

"It is very unfortunate that the company is retracting its own statement. Just a day

after it had said that it was willing to consider separate local unions at each plant, the

management simply refused to accept any new union and asked us to be a part ofthe existing union," the newly formed Maruti Suzuki Employees Union's General

Secretary Shiv Kumar said.

MSI Managing Executive Officer (Administration) S Y Siddiqui had on Monday

ruled out compromising on having a non-affiliated union at the Manesar plant.

Currently the company has one recognised union Maruti Udyog Kamgar Union --

which is dominated by workers at the Gurgaon plant.


Employees Union -- formed by those working at the Manesar plant, among otherthings.



On Sunday, however, the company said it was willing to recognise the new union --

the main demand of the workers.

The workers also said they are willing to end the stir provided 11 of their sacked

colleagues are reinstated.

Around 2,000 workers at the plant have been on strike since June 4, resulting in aloss of about Rs 450 crore for 9,000 units till Monday.

Earlier, CPI leader and Member of Parliament Gurudas Dasgupta wrote a letter to

Prime Minister Manmohan Singh to intervene and find an amicable solution to the

impasse.

Dasgupta had met Haryana Chief Minister Bhupinder Singh Hooda thrice to end

the strike at MSI's plant.



Strike Maruti's Manesar plant continues for the 12th day(15th June) :Chandigarh: The Haryana Labour department on Wednesday said there was apossibility of the strike at Maruti Suzuki India's Manesar plant to be resolved by

Wednesday.Strike at Maruti Suzuki India's Manesar plant continued for the 12th


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day on Wednesday with production loss touching 11,400 units translating into a loss

of about Rs 560 crore so far.

Meanwhile, Haryana's Chief Minister Bhupinder Singh Hooda, who met Maruti

Suzuki India's (MSI) top executives, including its Managing Director and CEO

Shinzo Nakanishi on Wednesday evening, is understood to have assured the firm of

state government's support in not letting formation of an another union.

No talks were, however, could take place on Wednesday between the management

and the workers.

Last week the state government had banned the strike.

Meanwhile, workers in about 65 factories in the Gurgaon- Manesar industrial belt

have decided to "work without taking food" on 17th June and hold a two-hour tool-down strike on 20th June between 11 am to 1pm in support of the striking

employees of Maruti.

An MSI spokesperson said: "The situation is the same as it was on Wednesday.

There is no production going on."

The production loss has touched 11,400 units, translating into a loss of about Rs 560

crore so far.

Due to the strike, waiting periods for diesel variants of three models, Swift, DZiREand SX4, have increased by up to one month.

MSI Managing Executive Officer (Marketing and Sales) Mayank Pareek said: "We

usually do not produce more cars than the market's demand. So, whatever loss in

production we are witnessing, that will impact the sales in this month."

Scrips of the firm closed the day at Rs 1,210.50 on the BSE, down 1.01 per cent.

During the day, hopes of ending the stir increased when an official of HaryanaLabour Department stated that it could end on Wednesday.

"There is a possibility of ending the standoff between both the parties (workers and

management) on Thursday as we are working hard on resolving the matter," a senior

official said.


18/20

However, at the time of filing this report there were no positive developments.

In the meantime, All-India Trade Union Congress (AITUC), which is leading the

agitation from outside along with other unions like the Centre of Indian Trade

Unions (CITU), said the five-member joint committee formed to back Maruti's

striking workers have decided to intensify its support.

"Nothing positive has happened so far. Workers in the region have decided that they

will work without food on Friday and hold a tool-down strike on Monday," AITUC

Secretary D L Sachdev said.

CITU Haryana President Satvir Singh said it will hold a public rally in front of MSI's

gate after 20th June.

On Tuesday, they had postponed a two-hour tool down strike following interventionfrom Haryana Chief Minister.

On 4th June, workers went on strike demanding recognition of a new union, Maruti

Suzuki Employees Union (MSEU), formed by those working at the Manesar plant,

among other things.



While a company spokesperson said only about 600 people are on strike now,MSEU claimed at least 2,000 workers are on the sit-in stir at the plant.

Currently the company has only one recognised union -- Maruti Udyog Kamgar

Union (MUKU) -- which is dominated by workers at the Gurgaon plant.

According to a striking worker, during the day MUKU representatives met

colleagues at Manesar plant to discuss formation of a governing council that will take

care of all the workers of MSI at its various plants, as mooted by the management.

It, however, is learnt that the idea was struck down by the workers at the Manesar

plant.

The plant rolls out about 1,200 units every day in two shifts.

The factory produces hatchbacks Swift and A- Star and sedans DZiRE and SX4.


19/20

Agitation at Maruti Manesar plant ends (16th June) :New Delhi: The 13-day strike at the country's largest car maker Maruti SuzukiIndia's (MSI) Manesar plant in Gurgaon was called off late on Thursday night

following a deal brokered by Haryana Chief Minister Bhupinder Singh Hooda

between the workers and the management.

As part of the deal, MSI will reinstate all the sacked 11 workers and take a lenient

approach on enforcing no-work-no- pay rule of eight day's salary cut for every single

day of the strike.

On the other hand, the worker's have conceded to the management's demand of notallowing the formation of a second union in the company.

"Agreement has been signed and workers have decided to call off the strike. They

will resume work from tomorrow", Haryana Labour Secretary Sarban Singh said.

He said the company has decided to reinstate all the 11 sacked employees and a

disciplinary inquiry will be initiated against them. Sources privy to the development

said the formula was worked out after Hooda met MSI top executives, including

Managing Director and CEO Shinzo Nakanishi, on Wednesday evening.

Company officials could not be reached for comments. As the strike continued for

the last 13 days, the company lost production of 12,600 units valued at about Rs 630

crore.

The shares of the company today fell 1.74 per cent at close at Rs 1,189.45 apiece on

the Bombay Stock Exchange.

Under the deal to end the strike, the management agreed to reduce the no-work-no-pay rule of eight day's salary cut for every single day of the strike to three days and it

can be reduced further to just one day depending on the conduct and productivity of

the workers at the plant in the next few months, said sources close to the

development.


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The workers, on the other hand, agreed that they will not press for the

management's recognition for a new union.

CPI and AITUC leader Gurudas Dasgupta, who had met Hooda several times in

the past 10 days, said the agreement will have no reference to the management's

decision of not allowing trade union activities at the plant.

On June 4, the workers went on a strike demanding recognition of a new union,

Maruti Suzuki Employees Union (MSEU), formed by those working at the Manesar

plant.

Currently, the company has one recognised union Maruti Udyog Kamgar Union

which is dominated by workers at the Gurgaon plant.

Retaining the contract labourers for the two upcoming new units inside the Manesarcomplex was another demand.

While a company spokesperson said only about 600 people were on strike, MSEU

General Secretary Shiv Kumar claimed at least 2,000 workers were on the sit-in stir

at the plant.

Cracking the whip, the company had fired 11 workers last week for allegedly inciting


Dasgupta said so far there has been no incident of violence and the workers have

been "united, responsible and patient, which is remarkable".

maruti case study 2 (2)

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