maruti suzuki manesar plant crisis ppt collection bargaining and trade union

2.  Maruti Suzuki India Limited (MSIL) has been
established and incorporated since 1983.
 MSIL is a subsidy of the Suzuki Motor
Corporation, Japan.
 Maruti Suzuki has been renowned for producing
the most fuel efficient, affordable and reliable
cars and therefore has been the leader of the
Indian car market for over the past two and
halve decades.
 Manufacturing facilities are located at two
facilities Gurgaon and Manesar

3.  India's largest passenger car company,
accounting for over 45% of the
domestic car market
 First company in India to mass-produce
and sell more than a million cars
 Annually exports more than 50,000 cars
 It offers 14 brands and over 150 variants
ranging from peoples car Maruti Alto
800 to the stylish hatchback

4.  On 18th July 2012 at Maruti’s labour plant, industrial
disputes broke out when workers became aggressive
and over 96 staff members were injured while also
leading to the death of a human resource manager.
 More then two-thirds of the employees were
involved in the strike, causing Maruti to lose about
INR 75 crores ($11.81 million) in revenue and INR
8 crores ($1.3 million) in operating profit daily while
also halting Maruti‟s production line causing it to
lose around 1200-1400 units daily.

5.  The company knew that trouble was brewing, they
knew that some workers planned on registering a
separate union and the company had already
prepared legal documents for a possible expulsion of
workers from the premises.
 Maruti Suzuki management tried to back a single
union, the Maruti Suzuki Kamgar Union, for both
Gurgaon and Manesar plant.
 This union had been set-up by forces close to
management after the lock-out at Gurgaon plant in
2000/2001.

6.  “On 3rd of June, eleven leaders of the workers went to
Chandigarh to meet the Labour Department to complete
the formalities regarding registration of our union on June
3, 2011. On the morning of that day, the labour department
officials faxed the news of our application to the
management.
 On the morning of June 4, 2011, through struggle, we were
able to retrieve some of the blank signed papers from the
management. By the afternoon, it became clear that the
management was using all kind of tricks to break our unity.
In such circumstances, we were forced to go on flash tool
down strike from the afternoon of June 4, 2011.”

7.  On the 4th of June after the change between morning
and late shift around 2,000 workers stop work and
remain in factory. Later on, the C-shift would not be
refused entry by management and these workers largely
remained outside the factory.
 During this initial stage, workers raised various issues
and demands: low wages, incentive cuts, few breaks.
The workers have demanded that the temporary
workers should be given preference for permanent posts
in new departments, which the company is currently
building on the premises.

8.  Differences in salary pay
 Working Conditions
 Unions generally limit themselves
to acting as a voice of permanent
employees
 Demand for a new union

9. I. Operations stopped for a month.
II. Loss estimated to be over Rs. 1,500 crore
III. Fear of insecurity to the employees and their
families
IV. Problem of lack of labor resource
V. Maruti changed its recruitment policy
VI. Goodwill affected.

10.  Large labor- unemployed
 GDP affected
 Loss of country resources
 Disturbance- affecting the common man

11.  Lack of communication between HR people and
labour
 Lack of coordination between labour union and
HR department

13. “If the floor supervisor is rude and even
slaps us, he is awarded with a promotion but
in case a labourer dares to reply, he is issued
a notice on grounds of disciplinary action,"
said Rajender Kumar, a technician

14.  Revenge for June's strike.
 Cockroaches and dead flies found in the food in the hurried
lunch-break that workers earn in the canteen ½ km from the working station.
 The tea was without tea leaves or sugar in the 7 minute break
The company doctor give heavy doses of „instant‟ medicines
even on minor complaint so that disruption of work could be
prevented.
 One day‟s wage cut of Rs.1500, two days Rs.2200, three days
cut of Rs.7-8000 is implemented, so that almost the total
month‟s wage is cut.
 One second late into punching-card entry is a day‟s wage cut,
but they have to give full production for that day too.

15.  Forced to fill an undertaking form, which means
that in case of any problem, workers cannot raise
any objections against management.

16.  Worker‟s demand to establish an independent union
Maruti Suzuki Employees Union (MSEU)in the
company.
 Currently, the company has one recognized union –
Maruti Udyog Kamgar Union which is dominated by
workers at the Gurgaon plant

17. “ Unhappy workers have found out a new way to
disrupt ongoing work at the plant by creating
serious defects in quality of the cars, so they
would fail the compulsory vehicle inspection (VI)
quality test.”

18.  Workers indulging in deliberate attempts to reduce
output and are compromising customer interests
 Revenge for the June strike.
 Refused to sign good conduct form which aims at
ensuring the production of good quality products.
 Employees are being charged with sabotage and
causing quality problems in the cars produced.

19. "In the last three days, a series of serious quality
problems have been observed in the vehicles
produced. For example, vehicle door was not
properly clamped leading to doors falling during
production, wiring harnesses were found cut in
produced vehicle, dents were noticed on the body
and critical components were not fitted on to
vehicles. Such deliberate acts, if not detected during
quality checks, would have led to serious
implications and directly harmed customers," a
senior company official said.

20. Suspension of 10 workers
Dismissal of five
Discontinued the services of six trainees.
Also suspended four workers for "instigating
indiscipline" a week before
Another four suspended in late July for
manhandling supervisors.
Charges of sabotage and causing quality problems
in the cars produced.
On 14th August; police force of 500 send to
occupy the factory to „prevent violent activities‟

21. The company terminated 11 workers and suspended
38 on August 29th and 30th on false charges demanding
a „good-conduct bond‟ with the state police and
administration, the media, and „bouncers‟ on its payroll as
its willing pawns.
The Maruti Suzuki Employees Union (MSEU) is
demanding as an immediate measure, the withdrawal of
the charge-sheet, termination, suspension of the 49
workers. The workers are sitting day-and-night at the
factory gate, peeling off the layers of Maruti Suzuki‟s
“way of life”.

22. Trade union would be established with prior
conditions: -
1. Members of the trade union to be nominated
with consent of both workers and management.
2. The leader of this union would be appointed by
the management.
If not agreed then management would move to plan
B.
3. Technology oriented operations reducing
demand of man power.

23. • They have to Properly Co Ordinate with each
other
• Proper rules for indiscrimination in salary
• They have to control the public pokers
• They should try to understand the labour‟s
problem.

25. Labour Law
A minimum time rate of wages
A minimum piece rate
Non-Discrimination of people at Workplace.
Local Hiring
Leave without wages
Working hours, holidays and overtime

26. Labour Laws tweaked by Maruti
 Enforcement of the Labour Laws was not followed
strictly.
 Differences in Salary Pay.
 Working Conditions.
 Lack of proper negotiations.

27. Necessary changes done after the event
 Hiring contract workers through company HR and
not through a contractor.
 Reopened the plant with 300 workers
 Fresh recruitment of permanent workers
 Terminate the services of 500 permanent
workers. (Involved in Violence)

28. Employee Labour Relationship should had been
maintained in decorum.
Flexibility is the key, not the cheapness.
Treat workers in the factory like humans.
The workers should refrain from taking law into their own
hands.
This would be a wrong reading. Companies hire
temporary (temps) and contract workers not only
because they are cheaper, but because they can be laid
off when they are not required. Flexibility is the key, not
the cheapness.