Maruti Suzuki workers went on strike in July 2012 at the Manesar plant, demanding a five-fold salary increase and other benefits. Approximately 2000 workers participated in the illegal strike, costing the company Rs. 6 billion. The strike was caused by differences in salary, harsh working conditions, a focus on contract workers with lower wages, and poor communication between workers and management. In response, Maruti Suzuki fired 500 workers, announced a lockout without pay, and later de-recognized the workers union and changed several policies. Better industrial relations may have prevented the conflict through open communication and addressing worker grievances.

1. SU BM I TTED BY:
SHUBHAM MONGIA (11509750)
PRESENTATION ON
Labour Unrest at Manesar Plant of
Maruti Suzuki

2. INTRODUCTION ABOUT MARUTI SUZUKI
 Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an
automobile manufacturer in India.
 Founded in 1981
 Revenue: 58,612 crore (2016)
 Number of employees: 12,900 (2015)
 Slogan: Way of Life
 It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki Motor
Corporation.
 As of January 2016, it had a market share of 47% of the Indian passenger car
market.
 The company is headquartered at New Delhi.

3. INTRODUCTION ABOUT MANESAR PLANT
 Day of strike : 18th July, 2012
 Workers on strike : 2000 workers
 Place : Maruti Suzuki Factory at Manesar
 Loss : Rs. 6 billion
 Slow down of production

4. WORKERS DEMAND
 Five fold increase in salary
 Monthly conveyance allowance of Rs.10,000
 Laundry allowance of Rs.3,000
 Corporate gift with every new car launch
 A house for every worker
 Compensation and normal weekend/holidays
 Current four paid weeks of vacation be increased to 7 weeks.
 Increase in leaves

5. REASONS OF STRIKE
 Difference in salary pay.
 Harsh working conditions
 Focus on Hiring contract workers
 Wage disparities.
 Very less Hikes (2009-2012)

6. Cont….
 Trust issues
 Communication Gap
 Lack of intelligence and information.
 Workers perception getting Negative

7. MANAGEMENT REACTION
 Sealed the gates and placed a row of security guards.
 500 workers were dismissed.
 Government passed it as an illegal strike.
 Announced Lockout
 No pay During Lockout
 Change in Policy

8. Cont…..
 De-recognize Maruti Suzuki Worker’s Union.
 Plant Re-opening
 Managing Directors apology.

9. WHAT MARUTI COULD HAVE DONE
 Demonstration of the policy
 Promoting the improved condition
 Fresh recruitment of permanent workers
 Employee Labour Relationship should have been maintained
 “Good Conduct Bond”
 Retention of Employees

10. CONCLUSION
 Regular Meetings
 Demand of new union can be fulfilled if the union is not politically influenced.
 Management’s Approach
 Treat workers in the factory as humans.
 Grievance Redressal committee should be set up.

11. Thank You