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Growth of Non-regular Employment in the automobile industry of India: A
case study of Maruti Suzuki India Limited
Artika Ashdhir
Dissertation Submitted for the Partial Fulfilment of the M. A. in
Globalisation and Labour for the Academic Year 2010-2012
School of Management and Labour Studies
Tata Institute of Social Sciences
Research Guide:
Dr. S.T Sawant
TISCO Chair Professor and Visiting Professor
Centre for Labour Studies
School of Management and Labour Studies
Tata Institute of Social Sciences
Mumbai – 400088
March 2012
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DECLARATION
I, Artika Ashdhir, hereby declare that this dissertation entitled ‘Growth of non-regular
employment in the automobile industry of India: A case study of Maruti Suzuki India
Limited’ is the outcome of my own study undertaken under the guidance of Dr. S.T Sawant,
TISCO chairperson and visiting professor, School of management and labour studies, Tata
Institute of Social Sciences, Mumbai. It has not previously formed the basis for the award of
any degree, diploma, or certificate of this Institute or of any other institute or university. I
have duly acknowledged all the sources used by me in the preparation of this dissertation.
27.02.2012
Artika Ashdhir
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Tata Institute of Social Sciences,
VN Purav Marg, Deonar,
Mumbai – 400 088
Tel: +91-22-25525000
CERTIFICATE
This is to certify that the research report entitled ‘Growth of non-regular employment in
the automobile industry of India: A case study of Maruti Suzuki India Limited’ is the
record of the original work done by Artika Ashdhir under my guidance. The results of the
research presented in this dissertation/thesis have not previously formed the basis for the
award of any degree, diploma, or certificate of this Institute or any other institute or
university.
Dr. S.T Sawant
TISCO Chair Professor and Visiting Professor
Centre for Labour Studies School of Management and Labour Studies
Tata Institute of Social Sciences
Mumbai – 400088
Place: Mumbai
Date:
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Contents
Abbreviations vi
Acknowledgement viii
1. Introduction 1
2. MSIL: company profile 3
3. Literature review 7
3.1 Globalization and informalization of work 7
3.1.1 Indian Scenario 11
3.2 Contract labour in India 13
3.2.1 Who is a contract worker? 13
3.2.2 Contract labour laws in India 14
3.3 Production patterns of the automobile industry 15
3.3.1 Crisis of Fordism 17
3.3.2 Evidence from India 19
3.4 Flexibilization in the automobile industry 20
3.4.1 Lean manufacturing 20
3.4.1.1 Principles of lean production 21
3.4.2 Flexibilization in labour legislations 22
4. Research Context 24
4.1 Basis of study 24
4.2 Objectives of study 24
4.3 Research methodology 26
4.4 Selection of areas of study 26
4.5 Research ethics 27
5. Primary findings 28
5.1 Growth of non-regular employment in MSIL 28
5.2 Changing production patterns and involvement of workforce 30
5.3 Human Resource Management policies of MSIL 33
5.4 Impact of change in production process and human resource management policies
on: 36
5.4.1 Regular workers 36
5.4.2 Non-regular workers 37
5.4.3 Trade union activities 39
5. v
5.4.4 Social security 40
6. International Metal workers’ Federation 42
7. Conclusion 43
Appendix 45
Bibliography 47
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Abbreviations
CKD – Complete knock down
CPM – Communist party of India
EO – Executive officers
ESI – Employees’ state insurance
FDI – Foreign direct investment
GBM – General body meeting
HRM – Human resource management
HSIDC – Haryana state industrial development committee
ILO – International labour organization
IMF – International metalworkers’ federation
IMF – International Monetary Fund
IMT – Integrated Manesar Township
ITI – Industrial training institute
JAW – Japan auto workers’ union
JV – Joint venture
LP – Lean production
MASs- Maruti authorized service stations
MEOs – Managing executive officers
MRP – Material requirements planning
MSIL – Maruti Suzuki India Limited
MSM – Maruti service masters
MSZ – Maruti service zones
MUEU – Maruti Udyog employees union
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PMP – Phased manufacturing programme
SAP – Structural adjustment programme
SDR – Special drawing rights
SKD – Semi knock down
SMC – Suzuki Motor Corporation
SPIL – Suzuki Powertrain India Limited
VRS – Voluntary retirement scheme
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Acknowledgement
I would like to show my sincere gratitude to Mr. Sudarshan Rao Sarde (Regional representative of
IMF South Asia office) and Mr. Gopalakrishnan Manicandan (Research and communications officer
IMF South Asia office) along with other office bearers of IMF South Asia office for giving me the
opportunity to do my internship with International Metalworkers’ Federation and for extending all
support possible for the completion of this research paper.
I am very grateful to Dr. Sharad Sawant, TISCO Chair Professor and Visiting Professor for the Centre
of Labour Studies, Tata Institute of Social Sciences for guiding me in this research work with his
valuable suggestions and ideas.
A special thanks to Mr. Mathew Abraham (former employee of MSIL) and Mr. D.L Sachdeva
(Secretary, All India Trade Union Congress) for sparing their valuable time and providing with
valuable inputs which has helped immensely in the completion of this paper.
Finally I would like to thank my colleagues at Tata Institute of Social Sciences and my parents for
helping me with my research work and encouraging me to complete this dissertation.
