Maruti Unrest (Manesar)

Labor Management Issue

-Ashik Dorjee

-Vikash Thakur

- IIMT School of Management

Company Introduction:-

• Maruti Suzuki India Limited- Subsidiary of Suzuki Motor Corporation.

• Market Share 49.24%- Indian passenger car Market.

• Manufacturing Plants- Guragaon and Manesar.

CEO/MD- Shinzo Nakanishi

Chairman- RC Bhargava

(www.marutisuzuki.com)

Issues…………………..................Workers…

• Registration of new union- (MSEU)- Independent for manesar Plant

• Differences in salary pay between two plants workers- Gurgaon & Manesar

• 3500-4000 workers employed in factory, but their status differ significantly (Working Conditions)

• Few minutes late, half of salary cut……..One day absent, looses about Rs1500-2000 from mini pay……2 day leaves, loose pay.

• Good Conduct Bond.

• Production Capacity of Maruti has gone up from10lakh units in 2009-10 to 12.7lakh units 2010-11

• 3rd June Process of registration Denied, 4th June Strike.

(www.ijaiem.org/volume2issue11/IJAIEM-2013-11-26-077.pdf)

………………………..Management.

• New Union will bring a third party-political party

• No clear demand

• Lack of discipline

• Accept and signed the “Good Conduct Bond”

(www.ijaiem.org/volume2issue11/IJAIEM-2013-11-26-077.pdf)

4th June 2011………………………………..(Reasons)

The workers gave no notice to management, they stopped production completely and around 2,000 workers stayed inside the

factory for nearly two weeks.

• Workers wanted to register new Union.

Workers Demands:-

• A Five-fold increase in Basic salary

• A monthly conveyance allowance of 10,000

• A laundry allowance of 3000

• A Gift with every new car launch

• A house for every workers, and a house with cheaper home loans

• Normal weekend/holidays, with four Paid weeks of vacation be increased to 7 weeks.

(www.ndtv.com/.../147-maruti)

(www.epw.in/web.../manesar-workers-are-villains-truth-or-prejudice)

Outcomes…………..

(www.thehindubusinessline.com)

Scope of the Further Studies…………….

• 580 workers sacked and 110 are behind bars, who were involved in the violence

• 15 legal Trade Unions have been set up for all the 9 plants

• The company has made 49% salary hike

• 800 robotic manufacturing in assembly by 2015

• New plant to be set up in Ahmedabad

(www.ijaiem.org/volume2issue11/IJAIEM-2013-11-26-077.pdf)

What Went Wrong……………………….?????????????????

1. Workers are not commodities.

2. Trust and Confidence between “White and Blue collars”.

3. Strike is ethical, whereas deliberately creating faults in Products is not

4. Politics has no place in unions.

5. No unnecessary comment in Media.

6. Lure of Contract Labor.

(www.icmrindia.org/casestudies/catalogue/.../HROB160)

Labor Law……….

• A minimum time rate of wages.

• Non-discrimination of people at work place.

• Local Hiring.

• Leave without wage cut/ Paid leaves.

• Working hours, holidays and overtime.

(labour.gov.in)

Labor laws tweaked by Maruti……….

• Enforcement of labor law was not followed strictly.

• Labor laws need to be followed but only on humanitarian grounds.

• Differences in salary pay.

• Working conditions.

Our Solutions………..

1. Good conduct bond should have acceptable conditions.

2. Monthly meetings should held between management and workers.

3. Recruiting company should give preliminary idea before recruiting them.

4. Demand of new union can be fulfilled only if the Union is not politically influenced.

References:-

(a) http://sanhati.com/excerpted/3887(b) www.ijaiem.org/volume2issue11/IJAIEM-2013-

11-26-077.pdf( c) www.marutisuzuki.com/plant-address.aspx(d) www.ndtv.com(e) labour.gov.in

Thank You