• Maruti Suzuki India Limited, is a subsidiary company ofJapanese automaker Suzuki Motor Corporation.• Has two manufacturing facilities located in Gurgaon and Manesar• It has a market share of 44.9% of the Indian passenger car marketas of March 2011.• 1st October, 2012 Maruti Suzuki India Limited sold a total of93,988 units in September 2012.• Key people: Shinzo Nakanishi -CEO & MDRC Bhargava -Chairman19-06-2013 GBE- MARUTI UNREST GROUP !1 2COMPANY INTRODUCTION
REASON FOR UNREST• The plant workers wanted to register a new union—theMaruti Suzuki Employees Union (MSEU)—and had alreadyapplied for registration, something the management wasopposed to.• More than 90 percent of these are contract workers who workfor 10-12 hours for 4000-5000 per month. The workload andspeed is extremely high and they have to face verbal abuseand even beatings by the supervisors and security guards.19-06-2013 GBE- MARUTI UNREST GROUP !1 3
MANESAR VIOLENCE JULY 201219-06-2013 GBE- MARUTI UNREST GROUP !1 4WORKERS DEMANDS:•A five-fold increase in basic salary,•a monthly conveyance allowanceof 10,000,•a laundry allowance of 3,000,•a gift with every new car launch, and ahouse for every worker who wants one orcheaper home loans for those who wantto build their own houses.•In addition to this compensation andnormal weekend/holidays, the uniondemanded the current four paid weeks ofvacation be increased to 7 weeks.
PROBLEM FROM WORKERS VIEW POINT• “If the floor supervisor is rude and even slaps us, he is awarded with apromotion but in case a labourer dares to reply, he is issued a notice ongrounds of disciplinary action," said Rajender Kumar, a technicianRevengefor Junes strike.• Cockroaches and dead flies found in the food in the hurried lunch-breakthat 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 onminor 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 theyhave to give full production for that day too.• Forced to fill an undertaking form, which means that in case of anyproblem, workers cannot raise any objections against management.19-06-2013 GBE- MARUTI UNREST GROUP !1 5
`19-06-2013 GBE- MARUTI UNREST GROUP !16•Shares of Maruti fell as much6.1% after the company declaredthe lockout. They closed 5.65%lower at 1,079.90 rupees,underperforming a 1.6% decline inthe main index.•In Tokyo, Suzuki shares fell 3.94%to 1,366 yen in a market down1.86%.•Maruti’s net profit fell 29% to16.35 billion rupees ($295.6million) in the year ended March31• Its vehicle sales fell nearly 11%to 1.13 million units.OUTCOME OF THE STRIKE
19-06-2013 GBE- MARUTI UNREST GROUP !1 7WHAT MARUTI COULD HAVE DONE
SCOPE FOR FURTHUR STUDIES• 580 WORKERS SACKED AND 110 are behindbars who were involved in the violence.• 15 legal trade unions have been set up for allthe 9 plants.• The company has made a 49% salary hike.• 800 robotic workers by 2015• New plants to be set up in Ahmedabad19-06-2013 GBE- MARUTI UNREST GROUP !1 8
REFERENCES• http://www.ft.com/intl/cms/s/0/bf331684-d15e-11e1-bbbc-00144feabdc0.html#axzz2AlKpPNsiAssessed on 30 Oct at 2pm.• http://www.firstpost.com/business/lockout-maruti-wants-to-talk-but-workers-have-disappeared-386072.html Assessed on 30 Oct at2pm.• http://zeenews.india.com/exclusive/peace-at-manesar-temporary-or-permanent_5212.htmlAssessed on 30 Oct at 2pm.19-06-2013 GBE- MARUTI UNREST GROUP !1 9