The document discusses a violent incident at Maruti Suzuki's Manesar plant on July 18, 2012, where clashes between workers and supervisors resulted in fatalities and significant injuries, marking a critical period for the company. Workers demanded higher wages and improvements in working conditions, leading to a month-long operational halt and an estimated loss of over Rs. 1,500 crore. In response to the unrest, Maruti modified its recruitment policies and faced challenges in maintaining employee goodwill and investor interest.

1. Career Point University
Submitted to :
Ms. Neelima Modi
Assistant professor
School of Commerce &
Management
Submitted by :
Yashasvi Sharma (K13478)
Krishna Chetiwal (K13836)
Tanmay Khatri (K13838)
Yamini Kahaliya (K13341)

2.  Introduction of Company
 Case in the company
 Reasons behind the case
 Impact of dispute on company
 Solution of the dispute
 Present Scenario

3. Company name Maruti Suzuki India Limited
Type Public
Industry Automotive
Predecessor Maruti Udyog Limited
Headquarter New Delhi
Founded 1981
Area served India
Website www.marutisuzuki.com
Products Automobile

4.  The Manesar manufacturing plant was inaugurated in February 2007 and
is spread over 2.4 km ,production capacity of 100,000 vehicles annually
initially.
 On 18 July 2012, Maruti's Manesar plant was hit by violence.
 As workers attacked supervisors and started a fire that killed a company
official and injured 100 managers, including two Japanese expatriates.
 The company's General Manager of Human Resources had both arms and
legs broken by this attackers.
 The incident is the worst-ever for Suzuki since the company began
operations in India in 1983.

6.  Since April 2012, the Manesar union had demanded
a three-fold increase in basic salary, a monthly
conveyance allowance of 10,000, a laundry
allowance of 3,000, a gift with every new car
launch.
 As well as a house for every worker who wants one
or cheaper home loans for those who want to build
their own houses

7.  Workers claimed about harsh working conditions.
 Extensive hiring of low-paid contract workers which are
paid about Rs.7500 per month, about half the minimum
wage of permanent employees.
 Differences in salary pay and no incentives for hard
work.
 Supervisor had abused and made discriminatory
comments to a low-caste worker who was suspended.

8.  Operations stopped for a month.
 Loss estimated to be over Rs. 1,500 crore
 Problem of lack of labour resource
 Maruti changed its recruitment policy
 Goodwill Lost interest of investors and job seekers.
 Loss Rs 75 cr per day, total loss of Rs 500 cars, more than
two-thirds of the employees were involved in the strike
 Fear of insecurity to the employees and their families

9.  Hiring contract workers through company HR and
not through a contractor.
 Fresh recruitment of permanent workers.
 Terminate the services of 500 permanent workers
(Involved in Violence).
 Haryana Government supported the company and
declared it as illegal strike.
 Reopened the plant with 300 workers.

10.  The Manesar plant achieved the 25 lakh
production milestone in September 2014.
 The plant manufactures some of the top
selling models like Swift, DZire.
 Spread over 600 acres, the Manesar facility
houses three units, Manesar A, B and C with
total annual capacity of 8,00,000 vehicles.