The document summarizes the Maruti Manesar dispute between Maruti Suzuki and its workers at the Manesar plant in India. In July 2012, violence broke out at the plant as workers attacked managers, killing one and injuring over 100. This was caused by tensions between permanent and contract workers over differences in pay and working conditions. The dispute significantly impacted Maruti's operations and cost it over $25 million. Solutions involved hiring reforms and reopening the plant with a smaller workforce.

1. The MARUTI Manesar
Dispute
Prepared By:
Nikita Balar (04)
Jignesh Soni (32)
Bhavin Agrawal (02)
Nitin Madhvi (28)

2.  Introduction
Maruti Suzuki India Limited is an automobile
manufacturer in India, established in 1982 and
headquartered in New Delhi.
Suzuki Motor corporation of Japan holds a majority stake
in the company.
It was the first company in India to mass-produce and sell
more than a million cars.
Recently, 18.28% of the company is owned by the Indian
government, and 54.2% by Suzuki of Japan.
Maruti Suzuki has 200-odd vendors.
http://www.marutisuzuki.com/company-at-a-glance.aspx

3.  Products
Maruti 800
Maruti Alto
Maruti Grand Vitara XL-7
Maruti Gypsy King
Maruti Omni
Maruti Suzuki SX4
Maruti Swift
Maruti Versa
Maruti Vitara
Maruti Wagon-R
Maruti Zen
http://en.wikipedia.org/wiki/Maruti_Suzuki

4.  Manesar Dispute
The Manesar manufacturing plant was inaugurated in February
2007 and is spread over 2.4 km2 ,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.
http://zeenews.india.com/exclusive/peace-at-manesar-temporary-or permanent
_5212.html

8.  Causes
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.
http://en.wikipedia.org/wiki/Maruti_Suzuki

9.  Causes:
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.
http://www.revolutionarydemocracy.org/rdv17n2/maruti.htm

10.  Impact on Company
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
Plant was suspended
Loss Rs 75 cr per day total loss of Rs 500 cr as more than
two-thirds of the employees were involved in the strike
Fear of insecurity to the employees and their families
http://www.hindustantimes.com/autos/htauto-topstories/maruti-back-in-
business-manesar-plant-reopens/article1-917055.aspx

11.  Impact on Economy
Large labour- unemployed
GDP affected
Loss of country resources
Disturbance- affecting the common man
http://articles.economictimes.indiatimes.com/2012-08-
07/news/33083609_1_manesar-plant-japan-s-suzuki-motor-dzire

12.  Problems
Lack of communication and coordination between HR
people and labour
Lack of coordination between managers
Proper rules for indiscrimination in salary
They should try to understand the labour’s problem
http://en.wikipedia.org/wiki/Maruti_Suzuki

13. Continue…
Contract Labour System:
Companies hire temporary and contract workers not only
because they are cheaper, but because they can be laid off
when they are not required
Actually the problems lies with personnel Managers &
HRD managers
These personnel managers are like Indian politicians, they
want money but nobody else should get it
These people take hefty salaries
http://en.wikipedia.org/wiki/Maruti_Suzuki

14.  Solution
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.
http://www.wsws.org/en/articles/2011/09/indi-s22.html

15.  What could be done in order to
avoid the event?
Employee Labour Relationship should had been
maintained in manners
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

16.  Present scenario
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.
Gandhi said: "While we achieve the milestone, we have
successfully implemented several ideas from the employees
on the important production pillars of productivity, cost,
quality and safety."
http://articles.economictimes.indiatimes.com/2014-09-16/news /53983059_1_
manesar-plant-manesar-facility-milestone