SlideShare a Scribd company logo
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)
 Introduction of Company
 Case in the company
 Reasons behind the case
 Impact of dispute on company
 Solution of the dispute
 Present Scenario
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
 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.
 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
 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.
 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
 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.
 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.
Maruti Manesar Dispute (Human Resource management issue) Assignment

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Maruti Manesar Dispute (Human Resource management issue) Assignment

  • 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.
  • 5.
  • 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.