maruti case study 2 (2)
TRANSCRIPT
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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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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.
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.
The striking workers are demanding the recognition of a new union -- Maruti Suzuki
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.
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.
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.
The striking workers are demanding the recognition of a new union -- Maruti Suzuki
Employees Union -- formed by those working at the Manesar plant, among otherthings.
Cracking the whip, the company fired 11 workers last week for allegedly inciting
others to go on strike.
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.
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.
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.
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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.
Cracking the whip, the company fired 11 workers last week for allegedly inciting
others to go on strike.
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.
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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
others to go on strike.
Dasgupta said so far there has been no incident of violence and the workers have
been "united, responsible and patient, which is remarkable".