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Perfect Relations
                       The Science of Image Management




The Maruti Manesar Crisis:
A Communications Approach
Background




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

The company has faced several incidents of employee protest, but never of
such scale and violence.
The incident is the worst-ever for Suzuki since the company began
operations in India in 1983.
The event has had the following
  repercussions:




Bad Indian and international press for Maruti
created by reportage of:
•Damage to the Manesar plant
•Maruti’s alleged unethical practices
•Damage to Maruti’s profits
What Maruti Did
Demands included:
five-fold increase in basic salary
a monthly conveyance allowance of Rs.10,000 has not been proactive.
                         The PR by Maruti
a laundry allowance of Rs. 3,000 it has been reactionary.
                         Instead,
 a gift with every new car launch
a 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 salary.
loans.                                                          perception of Manesar plant
75 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
What Maruti Could have Done
Diverting
Attention: Position        Video: A Day in                                     Rebuild Maruti’s
the Haryana’s              the Life Of a                                       India-Connect
                                                  Identify a credible          Mentions of
Government                 Maruti Worker          spokesperson                 increasingly
Inaction on Labour         Due to conflicting     Unlike previous Maruti       Japanese                 Maruti CSR
Laws                       reported versions of   leaders (R.C. Bhargava, J.   management at            campaign
                           labour conditions at   Khattar), who were also      Maruti was raised        A Maruti grassroots
Demonstrate that the
                           Maruti, Maruti         industry leaders, a          during reportage. A      CSR campaign that
work policies at Maruti
                           should authorize a     lacking credible             campaign to              undertakes
Manesar were in
                           video documentary      spokesperson cannot          associate Maruti’s       fundraising for
accordance with state
                           on improved work       build media gravitas.        traditional image        education and
labour policies, and
                           conditions at the      Possible option for          with India will foster   healthcare of labour
further, that this is a
                           plant.                 spokesperson:                unity amongst            families, to prevent
volatile situation that
Indian industry needs to                          SIAM President Mr. S.        employees                further grassroots
address.                                          Sandilya,                                             support for planned
                                                  Condemned the attack,                                 violence or mutiny
Further, addressing the                           stating that it tainted
lack of an adequate                               India’s image as a
number of police                                  manufacturing base, as
personnel to manage                               an investment
such crises                                       destination

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Maruti manesar case study august 6 2012

  • 1. Perfect Relations The Science of Image Management The Maruti Manesar Crisis: A Communications Approach
  • 2. Background 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 The company has faced several incidents of employee protest, but never of such scale and violence. The incident is the worst-ever for Suzuki since the company began operations in India in 1983.
  • 3. The event has had the following repercussions: Bad Indian and international press for Maruti created by reportage of: •Damage to the Manesar plant •Maruti’s alleged unethical practices •Damage to Maruti’s profits
  • 4. What Maruti Did Demands included: five-fold increase in basic salary a monthly conveyance allowance of Rs.10,000 has not been proactive. The PR by Maruti a laundry allowance of Rs. 3,000 it has been reactionary. Instead, a gift with every new car launch a 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 salary. loans. perception of Manesar plant 75 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. What Maruti Could have Done Diverting Attention: Position Video: A Day in Rebuild Maruti’s the Haryana’s the Life Of a India-Connect Identify a credible Mentions of Government Maruti Worker spokesperson increasingly Inaction on Labour Due to conflicting Unlike previous Maruti Japanese Maruti CSR Laws reported versions of leaders (R.C. Bhargava, J. management at campaign labour conditions at Khattar), who were also Maruti was raised A Maruti grassroots Demonstrate that the Maruti, Maruti industry leaders, a during reportage. A CSR campaign that work policies at Maruti should authorize a lacking credible campaign to undertakes Manesar were in video documentary spokesperson cannot associate Maruti’s fundraising for accordance with state on improved work build media gravitas. traditional image education and labour policies, and conditions at the Possible option for with India will foster healthcare of labour further, that this is a plant. spokesperson: unity amongst families, to prevent volatile situation that Indian industry needs to SIAM President Mr. S. employees further grassroots address. Sandilya, support for planned Condemned the attack, violence or mutiny Further, addressing the stating that it tainted lack of an adequate India’s image as a number of police manufacturing base, as personnel to manage an investment such crises destination