- The document discusses a loss-loss situation that occurred between Maruti Suzuki and its workers union at the Manesar plant in India. Operations were stopped for a month due to differences in salaries, working conditions, and demands for a new union. This led to estimated losses of over 1.5 billion rupees for the company and unemployment for many workers. It identifies a lack of communication between HR and unions as a key problem. Suggested solutions include proper coordination, non-discriminatory salary policies, understanding workers' problems, and following labor laws in a humanitarian way.

1. -Presented by Susheel

4. Loss-Loss
Situation

5. Causes
Differences in salary pay
Working Conditions
Unions generally limit themselves to acting as a
voice of permanent employees
Demand for a new union

6. Impact on Company
Operations stopped for a month.
Loss estimated to be over Rs. 1,500 crore
Fear of insecurity to the employees and their families
Problem of lack of labor resource
Maruti changed its recruitment policy
GOODWILL….

7. Impact on Economy
Large labor- unemployed
GDP affected
Loss of country resources
Disturbance- affecting the common man

8. Problems
• Lack of communication between HR people
and labour
• Lack of coordination between labour union
and HR department

9. For Managers….
• They have to Properly Co Ordinate with each other
• Proper rules for indiscrimination in salary
• They have to control the public pokers
• They should try to understand the labour’s problem

10. Actually the problems lies with personnel
Managers & HRD managers
These people take hefty salaries
These personnel managers are like Indian
politicians, they want money but nobody
else should get it!
Personnel Managers and Damagers

11. It is perhaps the socialist way of thinking.
There is no real development.
Only the union is stronger and there is real work
culture. This also should change
Why workers at Maruti's Manesar
plant are disgruntled

12. Impact
They are negative trigger for
existing companies and region
across the countries and also for
prospective investors and job
seekers

13. Manesar’s outcome
o Plant was suspended
o Abolish contract basis
o Loss Rs 75 Core per day

14. Lesson’s learnt
o Policies
oDiscrimination between workers
o Late intervention by the government

15. Labour Law
A minimum time rate of wages
A minimum piece rate
Non-Discrimination of people at Workplace.
Local Hiring
Leave without wages
Working hours, holidays and overtime

16. Labour Laws tweaked by Maruti
Enforcement of the Labour Laws was not
followed strictly.
Labour laws need to be followed but only on
humanitarian grounds.
Differences in Salary Pay.
Working Conditions.

17. Lack of proper negotiations.
Minimum wages.
Contract Labour
Companies hire temporary and contract workers
not only because they are cheaper, but because
they can be laid off when they are not required

18. Necessary changes done after the
event.
Hiring contract workers through company HR and
not through a contractor.
Reopened the plant with 300 workers
Fresh recruitment of permanent workers
Terminate the services of 500 permanent workers.
(Involved in Violence)

19. Employee Labour Relationship should had been
maintained in decorum.
Flexibility is the key, not the cheapness.
Treat workers in the factory like humans.
The workers should refrain from taking law into their
own hands.
What could had been done in order to avoid the
event