Maruti fires 500 workers, Manesar plant to restart on Aug 21Press Trust of India / New Delhi August 16, 2012, 21:20Ads by GoogleGet New Customers Online : Advertise On Google. Get 1500 INR Advertising Credit When You Sign-Up www.Google.com/AdWordsMaruti Suzuki today decided to lift the month-long lockout at Manesar plant from August 21 and sacked 500 regular workers, almost a month after large scale violence killed a top official and caused widespread destruction.

The company is also said to be planning to remove 500 contract workers over their alleged involvement in the violence on July 18 in which a General Manager (HR) was killed and nearly 100 others were injured.

"About 300 workers will start work on Tuesday (August 21) and when we start, we would be producing about 150 cars per day," Maruti Suzuki India (MSI)Chairman R C Bhargava told reporters here today.

- 64 riot accused persons surrender in court, get bail- PM admits to problems in UPA, asks parties to work together- Delhi govt in fast gear over regularisation of colonies- New timing for change of guard ceremony at Rashtrapati BhavanHe said MSI will gradually ramp up production but did not provide a timeline for reaching full output at the plant that has an annual capacity of 5.5 lakh units. Before the incident the plant had employees strength of 3,300 of which 1,528 were permanent.The production which was suspended on July 21, will restart with two popular models -- DZiRE and Swift, he added.

The overall loss is estimated to be over Rs 1,500 crore.

Production will resume under heavy security with Haryana Police providing 500 personnel. Besides, MSI will have its own 100 personnel apart from 40 personal security officers.

"We wanted to ensure that work can be carried out within the factory and also provide security to workers while returning home," Bhargava said.

On the fate of the workers allegedly involved in the violence, Bhargava said: "We have already issued notices to 500 permanent workers at the plant. The number may increase depending upon the investigation and if there is a need to issue more notices, we will."

Besides, 500 contract workers have been identified for their alleged involvement in violence and would not be taken back during new hiring to start on September 2, sources said.

Peace at Manesar: Temporary or permanent?Last Updated: Friday, August 17, 2012, 13:45, Violence at Maruti's Manesar plant, Maruti Suzuki production, Maruti Suzuki, Maruti's labour unrest

Ajay Vaishnav / Zee Research Group

The announcement by Maruti Suzuki to resume production next week after about a month of

a bitter acrimony between the management and its workers is bound to bring all round smiles

but are these there to stay forever? 

While both the warring factions have been under tremendous pressure to restore normalcy

with the fight putting a big question mark globally over brand India, a stable and durable

resolution to labour unrest in India’s manufacturing sector in general and automobile sector

in particular appears nowhere on the horizon. 

Maruti Suzuki’s Manesar plant has been under lockout since July 18 when a deadly riot

involving the workers and management left a senior HR manager dead and many others

severely injured. On August 16 (Thursday), India’s largest car-maker announced its decision

to resume production at the plant from next week while sacking as many as 500 workers for

their involvement in the July 18 violence at the plant on the basis of police charge-sheet

against them. Maruti also promised to look into the concerns of contractual workers – the

major cause for discontent and violence at Manesar.

It is tempting to read the resumption as a ‘sign of peace’ in one of India’s manufacturing hub.

But, aren’t we rushing into peace and still ignoring the fundamental issue of labour reforms?

In fact, like on earlier occasions, peace could be deceptive and transient. Take for instance,

the immediate trigger for July 18 violence was an alleged disagreement between the

management and workers over reinstatement of a suspended colleague. But there were

ominous signs of discontent piling up at the Manesar plant. 

Unlike Gurgaon plant which has seen only one instance of workers’ strike in 2000, Manesar

had experienced three labour strikes in 2011 alone. The Manesar workers’ demands have

ranged from giving recognition to a union of their own to parity in wages between the

permanent and contract workers. The latter have outnumbered their permanent

counterparts. To further complicate matters, they are being paid much less than a regular

Maruti Suzuki worker despite putting in same amount of labour and hours. 

To begin with, it would be too simplistic to see the violence as a routine law and order

problem. While the killers of the HR manager cannot be condoned and must be brought to

book, the violence itself cannot be separated from the larger issue of casualisation of

workers in the manufacturing sector especially automobile companies. In recent years, there

has been a stupendous growth in the informal sector and casualisation of workforce. At

present, 31.7 percent of employed workforce comes under the category of casual labourers

while only 19.7 constitute wage or salary earners. The rest – 48.6 percent – are self-

employed. These figures are based on the Report on Second Annual Employment &

Unemployment Survey (2011-12) conducted by the Labour Bureau. 

One key argument against casualisation of workforce is that it is seen as an indicator of

deteriorating job quality of the urban workforce. The contrary point of view suggests that

given that a company like Maruti essentially assembles the car at its plants while majority of

the parts manufacturing is outsourced to vendors hence the quantum of causal employment

was bound to be high. This would apply by and large to other auto companies as well. 

Casual workers are not only paid less but the disparity in wages between contract labourers

versus permanent could run as high as 50 percent. On top of it, they are often the first to

bear the brunt of a slowdown. At the lower levels, contract workers suffer due to absence of

standard rules and benchmarks covering their employment benefits. They are often

terminated without benefits and to the whims of management. What is grossly unfair to

workers is that casualisation creates a sense of insecurity and reduces collective bargaining

of the workers including of permanent workers. 

Not surprisingly, greater casualisation of workers is fuelling labour discontent across the

country. The recent violence at Maruti Suzuki’s Manesar plant in Haryana and previously in

several other automobile companies is directly related to how companies are hiring their

staff. According to media reports, Maruti’s Manesar plant has 2800 contract workers against

3000 permanent. While permanent workers get a minimum Rs 23,000 per month, those on

contract are paid only Rs 9,500. The disparity is the root cause of most of Maruti’s problems. 

Not only automobile companies, the trend is fast gaining currency in other manufacturing

sectors. More and more companies are now creating non-traditional employment structures

to circumvent labour laws and regulations. New employment categories such as part-time,

casual and contract labour have come in vogue to overcome stringent rules and regulations

that come attached with permanent contracts. According to the TeamLease Temp Salary

Primer 2011, India has an estimated 90 million temp workforce, of which about 500,000 are

engaged by the organised sector. That the trend is growing is evident from the fact that the

Indian temp staffing industry has added close to 75,000 jobs in 2010-11 alone. 

The reason for growth in contract labour is clearly a post-liberalisation phenomenon.

Globalisation has brought changes in the employment structure throughout the world. It is

argued that the need to effectively compete in a globalised market requires operational

flexibility whether it is related to capital, labour or rules. These variables must enhance and

not impede business’ growth in a dynamic work environment. Labour especially in a stringent

regulatory framework can not only deter foreign investors but may put domestic companies

at a disadvantage. Thus the clarion calls for making the labour market more investment and

employer friendly or to put it simply ‘hire and fire’ policy. 

Not surprisingly, the trend of engaging labour on contract is fast gaining currency in India as

well. It is increasingly being used to engage workers from both higher and lower end of the

spectrum and has definitely helped the management to engage talent and meet cyclical

shortfall. Not only it provides operational flexibility to companies, but also serves as an

effective tool to circumvent labour laws and trade unionism. While the concept of labour

contracts ranging from two to 18 months allowing manoeuvring room to employers isn’t bad

in itself, the contradictory nature of Indian labour market thwarts attempts to reap maximum

dividends from the arrangement. 

Indian labour market is at the crossroads. It should either reform or fall into greater abyss. At

present, it is swerving between two extremes, like most things Indian. While one extreme is

defined by rigid labour laws backed by stringent regulatory framework and militant trade

unionism, the other is characterised by a vast informal sector. The latter is governed by

vaguely defined multiple set of laws promising a lot but giving little organised access to

safety measures. Both need to be reformed and urgently. There is a need to impart greater

flexibility to the organised labour market while greater clarity in laws and strengthening of

social security and welfare net is required in the unorganised sector. 

Labour reforms is a long-pending issue and yet another symptom of policy paralysis that has

engulfed the wider polity. Unless our political class shows greater resolve and will to carry

forward reforms agenda including in the labour market, there is every possibility that

whatever progress India has made in past two decades would be lost. Given labour is a

crucial factor of production for India Inc., they must shirk their casual approach towards the

issue and lobby with political class to expedite reforms. For starters, they should initiate

labour reforms internally without waiting for policy intervention.

Maruti manesar plant..

Maruti Suzuki will lift the month-long lockout at its violence-hit Manesar plant from August 21 and has served termination notices on 500 regular workers.

The company is also said to be planning to remove 500 contract workers over their alleged involvement in the violence on July 18 in which a General Manager (HR) was killed and nearly 100 others were injured. Maruti Suzuki India is understood to have decided on resuming partial production at its violence -hit Manesar plant by next Tuesday.

"Almost all the assessments have been completed and partial resumption of the Manesar plant is likely next week.

Monday being a holiday, it is likely that work will resume on Tuesday," a source said.

Maruti to restart riot-hit Manesar plant on August 21

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By Anurag KotokyNEW DELHI | Thu Aug 16, 2012 7:02pm IST

(Reuters) - Maruti Suzuki(MRTI.NS), India's largest car maker, said on Thursday it would restart production at its Manesar factory on August 21 after sacking 500 workers over a deadly riot that shut the plant, costing tens of millions of dollars in lost output.The 550,000 vehicles-a-year factory in Manesar in Haryana, where the unit of Japan's Suzuki Motor Corp (7269.T) makes its best-selling Swift hatchback, has been idle since the July 18 clash between workers and management.

The company will start producing 150 cars a day from Tuesday, less than 10 percent of its average daily production before the violence in which a manager was killed and more than 100 people injured.

The resumption of production comes just in time for India's festival season, when people tend to make big-ticket purchases.

Deepak Jain, an auto analyst with the brokerage Sharekhan, estimated the company would be able to produce 300 cars daily in two weeks and about 500 in a month.

"Maruti has always managed to surprise the market with the way it has managed to bounce back from several strikes and ramp up production," he said.

The company has seen a revenue loss of about $256 million because of the shutdown, according to Reuters calculations, while analysts estimate it has been losing about $15 million a day.

A one-month shutdown would cut parent Suzuki's operating profit by about 6 billion yen, equal to 5 percent of the Japanese car maker's forecast for the year, according to analysts.

Production will start initially with 300 workers and the company will increase output gradually, the chairman of the company, R.C. Bhargava, told a news conference, adding that he could not say when the factory would be back to full capacity.

Labour troubles at Maruti have put the spotlight on the country's decades-old labour laws.

Other foreign car makers, such as Hyundai (005380.KS) and Honda (7267.T), have seen labour unrest at their Indian plants in recent years, and industry groups have renewed calls for the government to overhaul laws they say tie their hands.

"NORMALCY RESTORED"

India's labour laws make it difficult for big companies to fire permanent workers so instead, companies hire contractors, to the anger of the unions. Contractors at the Manesar factory said they were paid much less than permanent workers for doing the same skilled work.

The company will not employ contract workers in its production line anymore, Bhargava said, a move that could pressure margins due to higher staff costs but is seen as ensuring stability.

While the sacking of the 500 workers is likely to raise anger, the decision not to employ contract workers will be seen as a concession to the unions.

The company will start hiring additional employees from September 2.

"The decision to not let contract workers work in the production line is well thought of and although this will push production back, it will make sure normalcy is restored when the plant reopens," said Gajendra Nagpal, chief executive at brokerage Unicon Financial Intermediaries.

After last month's violence, police initially sought to detain all 2,500 workers who may have been present at the time. Most of those workers fled.

Police now say only a few hundred workers may have been involved in the riot which broke out after one employee faced disciplinary action. Company officials say workers attacked senior management during discussions, while the union said its representatives were attacked first.

The Haryana state government will deploy 500 armed police in the area to ensure safety, Bhargava said, adding that the company had set up its own force of 100 guards in addition to existing security.

"It would have been foolhardy of the company to start production without adequate security. This kind of security cannot be long term, but there's no option now. As we go along, we'll keep assessing the situation," he said.

Maruti lost $500 million in production last year because of labour unrest.

Maruti shares, valued at $6.2 billion, ended down about 1 percent on Thursday, underperforming a flat market. The stock has lost 4.4 percent since the riot.

Maruti To Resume Partial Production At Manesar Plant Next WeekWork may restart partially by August 21. Automated divisions expected to start first

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Maruti Suzuki India is understood to have decided on resuming partial production at its violence -hit Manesar plant by 21 August.

"Almost all the assessments have been completed and partial resumption of the Manesar plant is likely next week.

Monday (August 20) being a holiday, it is likely that work will resume on 21 August," a source said.

While the labour issue remains a factor, the initial work is mostly expected to be in the automated divisions of the plant, the source added.

When contacted, a company spokesperson declined to comment.

The source also said the company will work along with the district administration on the security of the plant in future to avoid a repeat of the July 18 incident.

On 13 August, Maruti Suzuki India Chief Operating Officer (Administration) S Y Siddiqui had said the company would take a final call on 17 August.

"We may be able to complete the total assessment of the situation at the Manesar plant by Friday and expect a clear picture to emerge regarding the reopening of the plant by then," he had said.

The company had declared a lockout at the Manesar plant on July 21 following violence and arson in which one senior executive was killed and 100 others were injured.

MSI had said the safety and well-being of its employees were paramount.

The Haryana government had announced formation of a special investigation team (SIT) headed by Assistant Commissioner of Police Ravinder Tomar with six inspectors to probe the incident.

On August 1, the police had arrested 10 office bearers of the Maruti Suzuki Workers' Union, including its President Ram Meher and General Secretary Sarabjit Singh, taking the total number of workers arrested to 114 in relation to the incident.

Maruti Suzuki Q1 Net Down 23%; 4th Quarterly Profit DropNet sales for the quarter rose 27.5 per cent to Rs 10,530 crore from a year earlier

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Maruti Suzuki, India's biggest carmaker, lagged estimates with a 23 per cent fall in fiscal first-quarter profit, its fourth consecutive quarterly profit decline, as a weak local rupee currency pushed up costs. 

Maruti, 54.2 per cent owned by Japan's Suzuki Motor Corp, said net profit fell to Rs 424 crore ($76.4 million) for the three months to June from Rs 549 crore a year earlier. 

"Adverse currency movements, notably the Yen-rupee exchange rate, impacted profits negatively," Maruti, which imports many components from Japan, said in a statement. 

Net sales for the quarter rose 27.5 per cent to Rs 10,530 crore from a year earlier. 

Analysts expected a net profit of Rs 485 crore for the quarter on revenue of Rs 10,110 crore, according to Thomson Reuters I/B/E/S. 

Maruti faces months of supply woes and a slump in market share and sales as a lockout at a key factory enters its second week after violent clashes between workers and management left one company official dead. 

The shutdown at the Manesar plant threatens a replay of a dismal 2011 when labour unrest battered the company's sales, market share and profit. 

The results released on 28 July are for the three months to end-June, and as such are not affected by the shutdown. 

The latest labour problems add to Maruti's woes at a time when it is fighting an industry-wide slowdown in sales as the Indian economy grows at its slowest pace in nine years, while a weakening rupee has made it even worse for an industry that depends on imports for key raw materials. 

Maruti shares, valued at $5.8 billion, are down more than 9 percent since it announced the shutdown of the Manesar plant on July 18. The stock closed 0.4 percent higher on Friday, underperforming a 1.1 percent rise in the broader market. 

Take This As A WarningThe government should not try to paint over the shocking arson and murder in Manesar; before all else, it should get to the bottom of the matter and expose the truth

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The events in the Manesar plant of Maruti Suzuki have been shocking for a number of reasons. Industrial unrest is not uncommon, and this country has mechanisms to deal with it. Labour laws are not perfect; their implementation is even less so. But by and large, the problems that inevitably arise in industry have been tackled peacefully. The level of violence and lawlessness in Manesar was exceptional. Second, Maruti is India's largest car manufacturer. Although it is also the oldest surviving manufacturer. It did not reach the top of the industry without merit. It has been a remarkably well-run company; it is difficult to imagine that it harboured such intense dissatisfaction amongst workers. And finally, the murder and mayhem in Manesar have made news which has been carried round the world. It is an event which will haunt India and affect its international image.

After a series of brief conflicts in the late 1990s, Maruti enjoyed a decade of peaceful industrial relations. This period of truce came to an end in June last year, when workers in Manesar struck over the right to form an independent union. The current strike is the fifth since then. Factories go off the radar when they are peaceful; as soon as they are on strike, they become hot news. Journalists meet workers at such times and list their complaints. A common thread amongst the workers' demands has been that they want to form a union of their own, independent from the company. But a union is necessary only if workers cannot get what

they want by talking face-to-face with the management.

 The Maruti dispute is not about wages; it is about working conditions. The high work standards of Japanese factories are well known; and Japanese companies take the same standards to their factories abroad. This is particularly true of vehicle factories. Cars are universally produced on assembly lines which move at a constant speed; a worker simply has to complete the work assigned to him in the seconds during which the half-made car passes him. Some of the work processes the Japanese insist on may sound inhuman to office-going Indians; but thousands of people all over the world have got used to them. 

Work on an assembly line is not fun. But with it are associated a regular wage and expectations of doing better. It is these expectations tied to a job that keep people slogging and, perhaps, even happy.

This is where things appear to have gone wrong in the Manesar factory. Workers have complained about the serious loss of earnings they face for small derelictions. Many of them obtained employment through agents, and do not enjoy the same security of service and expectations of doing better that permanent workers do. There is something that Maruti got right in Gurgaon and now seems to have got wrong in Manesar. This difference needs to be identified and addressed.

Unfortunately, it seems that the parties to the dispute have not been very good at doing so. This is not unusual. In all democratic countries, governments provide a service that guides employers and workers through negotiation, arbitration and adjudication. The machinery has been there in India for decades. But it has never been effective. 

Government departments have to compete to recruit personnel; in this competition, labour departments do badly because they offer poor pay and poorer working conditions. In any case, matters have gone so bad in Manesar that hundreds of people may become embroiled in suits. Courts are not good at bringing people together, and take years to reach a conclusion. So the prospects of a satisfactory resolution by official means look unfavourable.

That leaves one other mechanism. It was used often in British times, and continues to be used in Britain to this day. It is a commission of inquiry. The last time it was tried was quite recently: the government appointed three interlocutors to look for a solution on Kashmir. It failed; it went through the labours of talking to people, analysing the problem and framing recommendations, but they were put into cold storage. Still, it is worth trying in Manesar. For the facts are themselves not very clear here; a straightforward account of what happened and why would clear the air. 

The present government prefers to keep out of sticky situations and leave things to worsen on their own. But this situation is different; it is being watched abroad, and the perceptions that emerge will go towards forming India's image. The government should not paint a rosy picture of what happened; it should set an example of objective observation. 

Maruti Suzuki India announced an indefinite lockout at their plant at Manesar, Haryana, on 21 July after a general manager was killed and scores injured after a mob of workers attacked officials, smashed equipment and set fire to parts of the plant on 18 July.

Maruti Suzuki has no idea when the Manesar factory will reopen, the carmaker's chairman acknowledged on 21 July, saying it was impossible to import extra vehicles or shift lost production to another plant.

India's biggest car company stopped production at a factory in Manesar on 18 July after a manager was killed and 

Trade unionists have accused Maruti of "anti-union" activities at the plant, shut for weeks last year due to labour unrest.

"We cannot start production due to a danger to life and safety," Chairman R.C. Bhargava told a news

conference in his first public remarks following the violence. "We will not endanger our people any further.

"How long it will take? 10 days? 15 days? I don't know," Bhargava added. "We'll put all our resources to study and help the authorities but ... I cannot say when we will be able to restart the plant."

Maruti officials, addressing reporters, denied press speculation that the company would close the Manesar plant.

The Manesar factory, with a total annual capacity of 550,000 cars -- a third of Maruti's output -- is likely to stay closed for at least two weeks, analysts told Reuters, at a cost to the company of around $15 million a day.

"We would be very inefficient if we take six months. We'll request the Haryana government to expedite the investigation," a visibly emotional Bhargava told reporters, referring to the police probe being conducted by the Indian state's authorities.

Maruti, which builds its best-selling Swift hatchback -- the runaway leader in its segment -- at Manesar, will not be able to offset some of the lost production with imports or by increasing productivity at its other factory, Bhargava said.

More than $570 million was wiped off Maruti's market value on 19 July when its shares slid to their biggest one-day drop in two years. Shares of parent Suzuki Motor Corp fell a total of 5.7 per cent in trading on Thursday and Friday to their lowest level in three and a half years.

Twenty-four senior managers are still in hospital with injuries, mainly fractures of their arms and legs, of the 96 initially admitted after the riot. No workers were injured during the violence, Maruti's chairman added.

Workers at the plant attacked senior officials with iron rods, wooden sticks and unfinished car parts. Police are investigating the factory's entire 3,000-strong workforce and are seeking to press murder charges.

"In my wildest dreams, I never thought that a day would come like this, when our own workers would indulge in this kind of rioting and mob violence... leading to the burning to death of one senior officer," Bhargava, who has been with the company since its inception in 1981, told reporters.

The riot began after an altercation between workers and managers over a disciplinary incident involving a single worker. The factory's workers' union has accused Maruti officials of starting the violence and using hired thugs to beat workers.

kers, terminates services of 12 trainees

NEW DELHI, AUG 30: Maruti Suzuki India today suspended 16 more permanent workers and discontinued the services of 12 trainees as the stand-off between the management and workers at its Manesar plant intensified, completely affecting production for the second day.

“Production has not started yet, but there are indications that it will resume today with alternate arrangements like contract workers and hiring technicians,” a Maruti Suzuki India (MSI) spokesperson said.

After suspending 10 workers, dismissing five and discontinuing the services of six trainees yesterday, the company is continuing with its aggressive crackdown against labourers after quality issues attributed to sabotage came to light last week.

“We have suspended 16 more permanent employees today and also terminated the services of 12 more technician trainees,” the spokesperson said.

Those who have been suspended and dismissed are being charged with sabotage and causing quality problems in the cars produced last week.

The workers, however, said the management was taking these steps in ‘revenge’ for their 13-day strike in June demanding the recognition of a new union — Maruti Suzuki Employees Union (MSEU) — at the plant located in Haryana.

Production at the plant came to a complete halt yesterday, with the company preventing workers from entering the factory without signing a ‘good conduct bond’ following the alleged “sabotage’’.

“The management is taking revenge on us and forcing us to sign an undertaking following rejection of our application to form a union at the plant by the Haryana Government,” the MSEU General Secretary, Mr Shiv Kumar, who led the workers during the stir in June, said.

The suspended and dismissed workers include all the office-bearers of the proposed MSEU, he added.

However, management sources said MSI has been facing serious production issues, particularly with respect to meeting targets and quality control, in the past few weeks.

“On August 24, 1,230 cars were planned to be produced, but only 437 were assembled. Out of which, just 96 cars could pass quality check,” the source had said.

Workers have been indulging in deliberate attempts to reduce output and are compromising customer interests, the source added.

However, when asked about the allegations of tampering with the products, Mr Kumar said: “Some management-supported workers are doing this after the product is ready just to take revenge on us for the June strike.”

Alleging sabotage by some workers, the company management decided to enforce a ‘good conduct bond’ for the workers, which seeks an assurance that they will not resort to go slow measures, sabotage production or indulge in activities that will hamper normal production at the plant.

Taking an aggressive stance, the management is understood to have decided to move all non-automated production work from the plant to its Gurgaon unit till the time the workers agreed to sign the bond.

Over 22 regular workers at the plant have signed the bond so far. While casual workers have been asked to report to their respective contractors, apprentices at the plant have been given leave till September 1.

The plant, which produces models such as Swift, DZiRE and SX4, has a total of about 2,500 workers, of which 950 are regular employees.

Meanwhile, the scrip was being quoted 0.37 per cent up at Rs 1,084 in the morning trade on the Bombay Stock Exchange today

Maruti fires 500 workers, to reopen Manesar plant on Aug 21Last Updated: Friday, August 17, 2012, 08:41New Delhi: Maruti Suzuki on Thursday decided to lift the month-long lockout at Manesar plant from August 21 and sacked 500 regular workers, almost a month after large scale violence killed a top official and caused widespread destruction.

The company is also said to be planning to remove 500 contract workers over their alleged involvement in the violence on July 18 in which a General Manager (HR) was killed and nearly 100 others were injured.

"About 300 workers will start work on Tuesday (August 21) and when we start, we would be producing about 150 cars per day," Maruti Suzuki India (MSI) Chairman R C Bhargava told reporters here today.

He said MSI will gradually ramp up production but did not provide a timeline for reaching full output at the plant that has an annual capacity of 5.5 lakh units. Before the incident the plant had employees strength of 3,300 of which 1,528 were permanent. The production which was suspended on July 21, will restart with two popular models -- DZiRE and Swift, he added.

The overall loss is estimated to be over Rs 1,500 crore.

Production will resume under heavy security with Haryana Police providing 500 personnel. Besides, MSI will have its own 100 personnel apart from 40 personal security officers.

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"We wanted to ensure that work can be carried out within the factory and also provide security to workers while returning home," Bhargava said.

On the fate of the workers allegedly involved in the violence, Bhargava said: "We have already issued notices to 500 permanent workers at the plant. The number may increase depending upon the investigation and if there is a need to issue more notices, we will."

Besides, 500 contract workers have been identified for their alleged involvement in violence and would not be taken back during new hiring to start on September 2, sources said. 

Maruti riot was not planned, says Haryana police: Top 10 factsNDTV, 24 Jul 2012 | 08:03 AM 5 11 29  31 

VIDEO

We Mean Business: CAG report slams UPA government

39:46

 

Gurgaon police investigations do not show riots at Maruti Suzuki’s

Manesar plant were planned, according to K K Sindhu, police

commissioner. He said that the police has formed a lot of teams for

investigation and arrested the main accused organizing secretary.

 

Additional labour commissioner of Haryana Naresh Nawal also said that

agreements between workers and the Maruti management signed in

October 2011 were fully implemented. “Workers were satisfied. It was

never an issue. It was a suspension matter which they were negotiating,”

Nawal added.

 

Here are the top ten developments: 

1. Gurgaon police investigations do not show riots at Maruti Suzuki’s

Manesar plant were planned, according to K K Sindhu, police

commissioner. He said that the police has formed a lot of teams for

investigation and arrested the main accused organizing secretary.

Sindhu said that talks between the management and workers broke down

and a mob of around 3000 to 4,000 workers attacked with rods. “Teams

have been sent to different states to round up those who have fled,” he

added. He said that around 7 pm on 18 June 2012, the management

called Gurgaon’s deputy commissioner of Police. “Around 7 pm the

management called the DCP saying that everything is okay, if need be

we'll call you. Just after that this happened,” Sindhu said. He said that

the police took action to bring the situation under control.

 

2. Additional labour commissioner of Haryana Naresh Nawal said that

agreements between workers and the Maruti management signed in

October 2011 were fully implemented. “Workers were satisfied. It was

never an issue. It was a suspension matter which they were negotiating,”

Nawal added. Nawal said that a labour officer was present. “It was not

preplanned or anything. It was only an issue suspension. Workers wanted

it revoked that very day while the management asked them to wait for

supervisor,” Nawal said.

3. Days after the deadly riot at Maruti’s plant in Manesar, an eyewitness

describes what he saw. “I hear them shout pick up your weapons, do

what you have to,” he told NDTV on the condition of anonymity. (Watch

video here)

 

4. The government will set up a special investigative team to look into

the violence last week at Maruti Suzuki’s Manesar plant, and has

appointed KTS Tulsi as a special prosecutor for the case. “It was a

criminal act in all respects,” Hooda said after the meeting. This was the

first formal interaction between the government and the company after

the violence forced Maruti to shut down the plant.

 

5. A mahapanchayat of villages around the Maruti plant in Manesar has

voiced support for the company and asked it not to relocate. Village

elders have asked Maruti to begin production again at the plant, which

has been locked-out since the riots of July 18.

 

6. Central intelligence agencies and the Haryana police have said they

have not found any evidence so far to link the violence at the Manesar

factory to any Maoist organisation. There have been apprehensions about

Maoists making inroads into urban areas and especially in trade unions.

 

7. Six more workers were arrested on Sunday for their alleged

involvement in the arson and rioting at the plant on July 18, taking the

number of those detained to 97. They will be produced in a court today.

 

8. A senior manager was killed in last week's deadly riot. Many other

senior officials were severely beaten up, allegedly by angry workers; 24

senior managers are still in hospital with injuries, mainly fractures of

their arms and legs, of the 96 initially admitted after the riot. No workers

were injured during the violence, Maruti executives said. The lockout is

costing the company nearly Rs 80 crore a day. The Manesar factory’s

total annual capacity of 550,000 cars produces a third of Maruti's output.

 

9. Maruti officials have denied reports that the company is likely to close

the Manesar plant, where the company builds its best-selling Swift

hatchback - the runaway leader in its segment. Chairman Bhargava has

said the company will not be able to offset some of the lost production

with imports or by increasing productivity at its other factory. He

addressed a press conference in connection with Wednesday's violence

at the company's Manesar plant. He said that they cannot further risk the

life safety of management but they will also not move out of Manesar.

 

10. Suzuki executives say they are keen to establish Gujarat as their

exports hub by 2015. In June 2012, the Gujarat government had allocated

around 700 acres for Maruti's proposed plant near Mehsana. Maruti had

said it would invest Rs. 4,000 crore to set up the new manufacturing

facility in Gujarat by 2015.

Maruti Suzuki's Manesar plant faces lockout; car industry braces for slumpChanchal Pal Chauhan, ET Bureau Jul 20, 2012, 06.01AM IST

Tags: Suzuki Motor | Maruti Suzuki Workers Union | Maruti Suzuki India Ltd. | Manesar plant | Gurgaon administration | Cars

GURGAON: The spectre of a prolonged lockout loomed large over Maruti Suzuki's car plant at Manesar, a day after a senior executive was charred to death in a fire that broke out when workers went on a rampage.

Haryana government officials are believed to be seriously considering recommending a shutdown of the plant after Wednesday night's violence, easily the country's worst industrial relations-related incident since 2009 when the vice-president of auto parts maker Pricol was beaten to death by workers in the southern city of Coimbatore.

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Used Maruti 800 Find list of Maruti Dealers in Delhi. Get Best Deals!Getit.in/Maruti-DelhiThe deceased Maruti official, Awanish Kumar, is a human resources professional with the designation of general manager. His charred body was found on Thursday and identified by his family. Scores of workers and managers were also injured in the violence.

The ominous development signals more trouble for Maruti, which has been trying to solve a severe industrial unrest problem in Manesar for more than a year now. Three strikes last year lopped off nearly Rs 2,500 crore in revenue as production fell and popular models such as Swift could not be delivered to customers. On Thursday, Maruti's shares crashed 9%, its steepest fall since July 26 last year, to Rs 1,117.

"Maruti's 11% dip last year brought the entire passenger car segment to its knees and this abrupt halt at its plant would have a deep impact on this fiscal's sales," said Deepesh Rahore, MD (India), of IHS Global Insight. However, most brokerages have issued a 'hold' advisory on its shares in view of the long-term perspective.

Maruti Suzuki MD S Nakanishi did not comment on the matter. An interim report on Wednesday's incident has been sent to Suzuki Motor Corporation and a high-level team comprising senior managers would visit India to assess the damage. The daily financial loss for the company from the Manesar plant is pegged at Rs 75 crore with an output loss of around 1,200 cars a day.Police Have Taken Over the Factory

The factory, which has the capacity to produce 5 lakh cars a year and accounts for about a third of Maruti's total output, remained closed on Thursday.

According to a senior official in the Haryana government, the lockout of the facility would be announced soon, as the police have taken over the factory and will only hand it back after completing investigations.

The Haryana Labour Department has sent a report to the Haryana government saying it was a law and order issue and a lockout of the plant should be announced till investigations are completed.

The report would also be shared with the Centre and the chief labour commissioner as Japan is the largest investor in India and Suzuki Motor Corp-which owns 54.4% in the country's largest carmaker-has lined up fresh investments of over Rs 12,000 crore across its facilities in Haryana and in a proposed plant in Gujarat. The investments are budgeted till 2015-16.

Maruti Suzuki has also decided to transfer the entire stock of finished cars from the Manesar plant over the next two-three days as it convenes a strategy to restart operations at the factory, where the assembly line was partially damaged in the fire allegedly started by agitating workers on Wednesday. The company also plans to shift production of its bestsellers, such as Swift and DZire, to its Gurgaon plant. On Thursday, the Manesar plant, Maruti's most modern facility that rolls out cars such as Swift, DZire, SX4 and A-Star, resembled a police barrack, with the Gurgaon administration taking over the premises and posting over 2,000 policemen. Haryana government officials, led by the DGP and SDM, visited the factory during the day.

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The latest outbreak of worker protests has left Maruti's partners-such as components makers, dealers and other business associates-worried as the carmaker consumes 30% of the components sold in the country and has a 38% share of the domestic passenger car market.

Analysts tracking the automotive industry say the temporary setback for Maruti will alter the fortunes of the Indian car industry for the current fiscal year.

The company, which did not issue any statement on future strategy, said its top management, including Nakanishi, had visited the injured employees in various hospitals, including two Japanese expatriates.

"We are still assessing the total damage to property and facilities from the acts of arson. What is clear is that the office facilities have been burnt beyond repair, as have the main gate, security office and the fire safety section," the company said in a statement.

The Haryana government has taken a tough stand and rounded off 99 people suspected of being involved in the incident. It has also formed a special team to expedite the investigation. The government has registered cases under Section 302 of the Indian Penal Code against unidentified persons and 55 identified persons.

However, the prime suspects in the case, Maruti Suzuki Workers Union president Ram Meher and general secretary Sarabjeet Singh, are still to be arrested. Ram Meher issued a statement claiming the union had the workers' and company's welfare in mind."We have worked towards mutual benefit of the workers and the company and to blame the current violence on us is unjust. We are still keen to have a dialogue with the company and want to sit down with the management and the government labour department to amicably resolve the matter and restore peace in the factory," he said in a statement on Thursday.

This June 2011 photo shows workers shouting slogans during a strike at Maruti's Manesar plant. Photo: Kamal Narang

Terming the labour problem at its Manesar plant as a “political issue”, car-maker Maruti Suzuki India on Thursday said it will not compromise on its established norms for industrial relations while attempting to resolve the disturbance.

“My understanding is that the Manesar labour problem is essentially a political issue and not a problem which involves any significant demand from the workers,” Maruti Suzuki India (MSI) Chairman R.C. Bhargava said at the company’s 30th Annual General Meeting here.

Since it is a political problem, its resolution will be based on Maruti’s established principles for industrial relations, he added.

“We do not intend to compromise on that. We have been talking to the workers and we have made it clear to them that we will not compromise,” Mr. Bhargava said.

The company, however, expect to sort out the issue at the earliest possible, he added.

Production has been severely hit at the first plant in Manesar since August 29 when the management prevented workers from entering the unit without signing a ‘good conduct bond’ after alleged “sabotage” and deliberate quality compromise on cars.

The workers, however, said the management was taking the steps in “revenge” for a 13-day strike in June demanding the recognition of a new union — the Maruti Suzuki Employees Union (MSEU) — at the plant located in Haryana.

During the first two days of the stand-off, MSI dismissed five permanent workers. In addition, it suspended 26 permanent workers and discontinued the services of another 18 trainees on charges of sabotage and causing quality problems in cars.

The plant has a total of about 2,500 workers, of which 950 are regular employees.

On average, the firm produces about 1,200 units of its Swift, A-Star and SX4 cars every day from the plant, where the labour troubles are centred.

Although limited production is going on, the loss suffered by MSI since the trouble surfaced is estimated at about 8,550 units, valued at about Rs 425 crore, as of September 7.

Earlier, in June, a 13-day strike demanding the recognition of the MSEU at the Manesar plant crippled output, with the company witnessing a production loss of 12,600 cars, valued at about Rs 630 crore.

Commenting on the domestic market situation, Mr. Bhargava said there has been a slowdown due to the cyclical nature of the automobile industry, which has been compounded by high interest rates and fuel prices.

“In the festive season, the market should move up and next year, it will be much better,” he added.

Mr. Bhargava also said the lack of a proper auto fuel policy, especially regarding the pricing of diesel, has prevented auto companies from investing on engine plants.

In the absence of a clear roadmap on how diesel prices would be placed in future, he said MSI has been unable to decide on whether to invest on increasing production capacities for diesel or petrol engines.

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NEW DELHI, September 10, 2011

Maruti to start recruiting new workers for Manesar plant

PTISHARE  ·   PRINT   ·   T+  

PTIManufacturing of cars under way on the production line at Maruti Suzuki's Manesar plant. File photoTOPICS

economy, business and finance company information labour labour dispute

Encouraged by support from Haryana labour authority and its parent Suzuki Motor Corp in the ongoing tussle with workers at the Manesar plant, Maruti Suzuki India is understood to be planning to recruit new permanent employees to replace the existing ones.

With no signs of an end to the standoff that started on August 29, the company has decided to give the current workers time till Monday to sign the “good conduct bond” before replacing them with new workers.

“From Tuesday onwards the company will start hiring trained technicians, who will be on the permanent rolls, to replace the current workers who refuse to sign the bond,” a source close to the management said.

When contacted MSI spokesperson declined to comment.

Production has been severely hit at the first plant in Manesar since August 29 when the management prevented workers from entering the unit without signing a ‘good conduct bond’ after alleged “sabotage” and deliberate quality compromise on some cars.

The bond required the workers to declare that they would “not resort to go slow, intermittent stoppage of work, stay-in-strike, work-to-rule, sabotage or otherwise indulge in any activity, which would hamper the normal production in the factory”.

So far, 81 workers have signed the bond but majority of them have refused to sign it. MSI has about 2,500 workers at the first plant in Manesar and around 1,000 of them are permanent.

During the first two days of the stand-off, MSI dismissed five permanent workers. In addition, it suspended 26 permanent workers and discontinued the services of another 18 trainees on charges of sabotage and causing quality problems in cars.

Last evening, Haryana Labour Commissioner Satwanti Ahlawat said that the good conduct bond, which the company management is insisting its workers at Manesar plant to sign, is as per rules.

“Whatever the bond that the management (MSI) is asking its workers to sign is as per rule and workers will have to sign it,” she told PTI, adding the state labour department was persuading the workers to rejoin work as soon as possible.

Besides, MSI’s parent Suzuki Motor Corp (SMC) has also stood behind the company with Chairman Osamu Suzuki ruling out any compromise on discipline.

Suzuki had told representatives of Maruti Udyog Kamgar Union (MUKU), the elected union of Maruti Suzuki India (MSI) that the management of the Indian arm would not accept any indiscipline in the company.

“Indiscipline is not tolerated... not in Japan, not in India. It is never in the interest of any company and its people,” Mr. Suzuki said.

Keywords: Maruti Suzuki, Manesar plant, workers strike

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Strike at Suzuki Powertrain affects Maruti Suzuki’s production Manesar plant problem is political issue: Maruti Suzuki Maruti impasse continues Maruti stops production at Manesar plant SIAM calls for labour reforms Haryana Labour department hopeful of resolving Maruti strikeMORE IN: Companies | Business | Industry

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