WHAT DO YOU MEAN BY INDUSTRIAL RELATIONS? INDUSTRIAL DISPUTES CAUSES OF INDUSTRIAL DISPUTES SETTLEMENT OF INDUSTRIAL DISPUTES TRHOUGH COLLECTIVE BARGAINING Case Study Maruti Suzuki Manesar: An Industrial Relations Crisis

1. Human Resource
Management
INDUSTRIAL
RELATIONS

2. WHAT DO YOU MEAN BY INDUSTRIAL
RELATIONS?
Industrial relations refer to the relationship between the
manager and the employee.
J Henry Richardson defined Industrial Relations as:
“Industrial Relations is an art, the art of living together for the
purpose of production. The parties while working together
learn this art by acquiring the skills of adjustment.”
The main parties involved in it are:
• Employees and their organizations like Trade Union
• Employers or the Firm
• Government

3. INDUSTRIAL DISPUTES
Industrial dispute means any dispute or differences between
employer and employer, employers and workmen or workmen and
workmen which is connected with employment or non-
employment or terms of employment or with the conditions of any
worker.
The various types of Industrial Disputes are:
• Strike
• Lockout
• Gherao

4. CAUSES OF INDUSTRIAL DISPUTES
The causes of industrial disputes can be broadly classified into two
categories: economic and non-economic causes.
Economic Causes
• Wages, bonus and
allowances
• Working Hours, Without
Pay Leaves
• Unjust Layoffs
Non-Economic Causes
• Victimization of Workers
• Ill Treatment by Staff
Members
• Sympathetic Strikes
• Political Factors
• Indiscipline

5. SETTLEMENT OF INDUSTRIAL DISPUTES TRHOUGH
COLLECTIVE BARGAINING
• It refers to the process of decision making and democratic
working.
• It is the process of negotiation between the management and
employees to establish mutually agreeable working condition.
• It is a collective and continuous process which aims to form
stable relationships.
• It does not only involve establishing an agreement, but also
implementing it.
• It is a flexible approach.

6. Case Study
Maruti Suzuki Manesar:
An Industrial Relations Crisis

7. Background
On 18 July 2012, auto factory workers in Maruti’s Manesar plant
attacked supervisors and started a fire that killed a company
official and injured 100 personnel, including two Japanese
Expatriates.
The main causes responsible for this tragedy were:
• A caste slur(later discredited) by a supervisor against a worker
• Failed negotiations regarding new demands by workers.
The company has had several incidents of employee protest, but
never of this magnitude.
The incident is worst ever for Maruti Suzuki which began
operations in India in 1983.

8. INCIDENTS
• Factory building and many cars were burnt which killed a manager and left a
100 injured.
• 2 Japanese Officials Injured
• The violent mob injured 9 policemen trying to control the situation.
• The Hands and Legs of HR Manager Awanish Kumar Dev were broken, as a
result he could not move and the building was set ablaze, charring him to
death.
AFTER EFFECTS
• An FIR was filed with Police leading to 91 Employees getting arrested under
murder charges.
• CCTV Recordings was used to determine the sequence of events and know
the identity of people involved.
• Lockdown of the Manesar plant was undertaken and all employees were
suspended indefinitely.
• The shutdown of the plant incurred a loss of ₹75 Crores each day for Maruti
Suzuki Ltd and the plant damages totalled upto ₹500 Crores.

9. What Maruti Could Have Done
Diverting Attention: Position the Haryana Government's inaction
on Labour Laws
Video: A day in the Life of a Maruti Worker in improved conditions
Identify a Credible Spokesperson to defend the image of the
company.
Rebuild Maruti’s India Connect: Reduce Japanese influence on
Indian operations.
Maruti CSR campaign to prevent protest at grassroot levels

10. Insights
The need to use mature approach
to Industrial Relations
Industrial Relations require a
proactive management
The ability to handle and
resolve a conflict is a business requirement

11. Priyanshu Gupta
BMS Sem III
13MG4535
THANK
YOU

12. Priyanshu Gupta
BMS Sem III
13MG4535
THANK
YOU