INDUSTRIALRELATIONS IN MARUTICOMPANY JONLENJ.R.DESA M.COM II (BM) R/M.COM-11-06
PRESENTATION PATHIndustrial RelationsIndustrial Relations of MarutiManesar Violence-Incident, Causes, Effect & Action taken.Insights on Industrial Relations from MarutiPicturesConclusion
INDUSTRIAL RELATIONS Industrial Relation is the relation between 2 parties ie employer & employee connected with industrial activity. Relationship b/w management and employees and vice-versa.
Industrial Relations of Maruti• Maruti Udyog Ltd was founded in 1983. Later on it merged with Suzuki.• In 1997, there was a change in ownership, where it became Government controlled.• Conflict between United Front Govt & Suzuki.• From 2000 onwards, there were many strikes and lockouts which have continued till date.
Worst ever incident by Maruti SuzukiWHAT EXACTLY HAPPENED ON THIS FATEFUL DAY???
INCIDENTSWorkers started a fire, that killed the HR Manager and100 injured.2 Japanese officials were injured.The violent mob injured 9 policemen.The hands & legs of the HR Manager Awanish Kumar Devwere broken, as a result he could not move, & thebuilding was set ablaze and was charred to death.Factory building and many cars were burnt.
Manesar Union had demanded the following:1. A five-fold increase in basic salary2. A monthly conveyance allowance of Rs 10,0003. A laundry allowance of 3,0004. A gift with every new car launch5. A house for every worker who wants one or cheaper home loans for those who want to build their own houses.6. 4 paid weeks of vacation be increased to 7 weeks7. Each worker have 40 days allowance of sick and casual leave - for a total of 75 days.
A supervisor had abused and made discriminatory comments to a low-caste worker Workers union demanded the reinstatement of a worker who had been suspended for beating a supervisor. Harsh working conditions and extensive hiring of low-paid contract workers
An FIR was filed with the police. 91 employees were arrested & 55 accused were searched. The recorded CCTV footage has been used to determine the sequence of events and people involved. All work at Manesar plant was suspended indefinitely. Lockout was called & payment for employees. The shut down of Manesar plant is leading to a loss of about Rs 75 crores per day.
Action taken by the ManagementS. Nakanishi, managing director and chief executive of Maruti Suzuki India declared a lockout saying that safety is more important than business.Mr. Nakanishi went to each victim apologizing for the miseries inflicted on them by fellow workers.He said that he will de-recognize Maruti Suzuki Workers’ Union and dismiss all workers named in connection with the incident.He also announced Maruti plans to continue manufacturing in Manesar,
Latest NewsNew Swift launch delayed due to strike.Manesar plant reopened on 21/8/12.Contract worker regularization to be done by OctoberFull worker strength by September endPlanning to manufacture 850 cars per day
Four Industrial Relations insights from the Maruti Suzuki Strike