Maruti manesar case study august 6 2012


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On 18th July 2012, auto factory workers in Maruti's Manesar plant attacked supervisors and started a fire that killed a company official and injured 100 managers, including two Japanese expatriates.
The attack was allegedly influenced by: i. A caste slur (later discredited) by a supervisor against a worker ii. Failed negotiations about employee regularization

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Maruti manesar case study august 6 2012

  1. 1. Perfect Relations The Science of Image ManagementThe Maruti Manesar Crisis:A Communications Approach
  2. 2. BackgroundOn 18th July 2012, auto factory workers in Marutis Manesar plant attackedsupervisors and started a fire that killed a company official and injured 100managers, including two Japanese expatriates.The attack was allegedly influenced by:i. A caste slur (later discredited) by a supervisor against a workerii. Failed negotiations about employee regularizationThe company has faced several incidents of employee protest, but never ofsuch scale and violence.The incident is the worst-ever for Suzuki since the company beganoperations in India in 1983.
  3. 3. The event has had the following repercussions:Bad Indian and international press for Maruticreated by reportage of:•Damage to the Manesar plant•Maruti’s alleged unethical practices•Damage to Maruti’s profits
  4. 4. What Maruti DidDemands included:five-fold increase in basic salarya monthly conveyance allowance of Rs.10,000 has not been proactive. The PR by Marutia laundry allowance of Rs. 3,000 it has been reactionary. Instead, a gift with every new car launcha house forthe the extortionate demands/cheaper home Covering every worker who wants one levied upon Address the new mob violence Maruti management, including 1 lakh rupee monthly perception of Manesar plant75 days of leave Provide interviews to show that Maruti Manesar was a planned conspiracy, and not a spontaneous attack that can suddenly happen again Legal action on accused: show that proactive Management also as action is being taken victims: to generate against any violations of sympathy and give a human law. face to the violence Personal apology from Maruti MD: to show a human touch to corporate management
  5. 5. What Maruti Could have DoneDivertingAttention: Position Video: A Day in Rebuild Maruti’sthe Haryana’s the Life Of a India-Connect Identify a credible Mentions ofGovernment Maruti Worker spokesperson increasinglyInaction on Labour Due to conflicting Unlike previous Maruti Japanese Maruti CSRLaws reported versions of leaders (R.C. Bhargava, J. management at campaign labour conditions at Khattar), who were also Maruti was raised A Maruti grassrootsDemonstrate that the Maruti, Maruti industry leaders, a during reportage. A CSR campaign thatwork policies at Maruti should authorize a lacking credible campaign to undertakesManesar were in video documentary spokesperson cannot associate Maruti’s fundraising foraccordance with state on improved work build media gravitas. traditional image education andlabour policies, and conditions at the Possible option for with India will foster healthcare of labourfurther, that this is a plant. spokesperson: unity amongst families, to preventvolatile situation thatIndian industry needs to SIAM President Mr. S. employees further grassrootsaddress. Sandilya, support for planned Condemned the attack, violence or mutinyFurther, addressing the stating that it taintedlack of an adequate India’s image as anumber of police manufacturing base, aspersonnel to manage an investmentsuch crises destination