The document discusses violence that occurred at the Maruti Suzuki plant in Manesar, India in 2012. A senior executive was killed and 100 others were injured in a clash between workers and management. This was the result of a breakdown in management-worker relations and growing tensions over issues like wage disparity between permanent and contract workers, India's rigid labor laws, and the lack of job security for contract workers. The violence highlighted the need to address the large gaps in pay and benefits between regular employees and contract workers in India's automobile industry to prevent such disputes from escalating in the future.

1. WITH REFERECE TO VIOLENCE AT MARUTI
SUZUKI PLANT, MANESAR.
PIYUSH GARG MAIT
2/4/2014

2. 

The lockout at the Manesar plant of India’s
largest automobile manufacturer, Maruti
Suzuki India Limited (MSIL), is an inevitable
consequence of the breakdown in
management-worker relations that climaxed
in the death of a senior executive – Awanish
Kumar Dev, the plant’s human-resources
manager.
Almost 100 other people, largely from
management, were injured and the plant
suffered extensive damage from arson.
PIYUSH GARG MAIT
2/4/2014

3. 


As a result, shares of the company had closed
down nearly 9 percent down, hitting a
two-year low, on the Bombay Stock
Exchange.
These cases bring to fore the ugly face of
industrial unrest and labor violence.
The reason for the recent mob violence
are generic in nature and not a point in
isolation.
PIYUSH GARG MAIT
2/4/2014

4.  Wage
disparity
 Contractual workers
 India’s archaic labor laws
 Orchestrated TRADE UNION
VIOLENCE
 GAP b/w blue and white collars
PIYUSH GARG MAIT
2/4/2014

5. WAGE DISPARITY



One of the common reason of industrial
dispute is widening disparity b/w
management salaries and workers wages.
A contract worker gets less than half the
salary of permanent worker both essentially
doing the same job.
This has led to demand of PAY PARITY.
PIYUSH GARG MAIT
2/4/2014

6. Well defined extent of differentiation in remuneration.
Minimum wages must be revised to provide sufficient
purchasing power to workers.
Linking the minimum wage to changes in the consumer
price index.
EQUAL PAY FOR EQUAL WORK.
PIYUSH GARG MAIT
2/4/2014

7. Increasing reliance on contract labor to get routine operations done at
Cheaper costs.
Workers get less pay for the full job
Lack of job security and denied benefits like GRATUITY, PROVIDENT
FUNDS AND HEALTH INSURANCE.
This lead to LABOR DISPUTES AND LABOR VIOLENCE.
PIYUSH GARG MAIT
2/4/2014

8. GOVT. intervention is
needed for well
defined rules on hiring
and firing of contract
workers.
Contract labor should
be encouraged without
making them feel that
they are loosing out in
terms of benefits.
Necessary amendment
drafted in CONTRACT
LABOR ACT, 1970
should see the light of
the day.
PIYUSH GARG MAIT
2/4/2014

9. 


Rated by world Bank as
most RIGID.
Place strict limits on
number of HIRES and
conditions for
retrenchment.
Force manufacturers to
hire more casual
workers
FACTS



LAWS should provide
flexibility to employers
PRO – Labor policies are
not enough; creation of
EMPLOYMENT
OPPORTUNITIES holds the
key.
There is a need to strike
a balance b/w the needs
of a growing economy
and the interest of
people.
WHAT WE NEED?
PIYUSH GARG MAIT
2/4/2014