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The Manesar Violence - The Background

The document summarizes a violent incident that occurred at Maruti Suzuki's Manesar plant in India in July 2012. Production workers attacked supervisors, starting a fire that killed the General Manager of Human Resources. This came after years of tensions as the company replaced permanent workers with contract workers, creating economic disparity and ambitious demands from permanent workers. After the incident, the company indefinitely suspended operations, dismissed over 500 accused workers, and eventually reopened the plant at 10% capacity after some workers were convicted. Underlying causes included pressure from Japanese management to boost productivity, overloading of the plant, and issues with labor laws, salaries, and discrimination between worker types.

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45 views4 pages

The Manesar Violence - The Background

The document summarizes a violent incident that occurred at Maruti Suzuki's Manesar plant in India in July 2012. Production workers attacked supervisors, starting a fire that killed the General Manager of Human Resources. This came after years of tensions as the company replaced permanent workers with contract workers, creating economic disparity and ambitious demands from permanent workers. After the incident, the company indefinitely suspended operations, dismissed over 500 accused workers, and eventually reopened the plant at 10% capacity after some workers were convicted. Underlying causes included pressure from Japanese management to boost productivity, overloading of the plant, and issues with labor laws, salaries, and discrimination between worker types.

Uploaded by

karan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The Manesar Violence – The Background

• Manesar 2007 - 1,152 cars a day on two shifts of eight hours each
• 2010 Slowdown recovery – Sudden jump in bookings
• Strategy – Inc. contract workers, reduce cost & improve production
• Replacement of permanent workers by non-permanent workers
through voluntary retirement schemes
• Outcome - Ambitious demands of permanent workers, economic
disparity
• 2011 Workers Strike – June to October, 3 strike in 5 months
• Revenue Losses - 2.5K Cr.
The Incident & what triggered it ?
• 18 July 2012, Maruti's Manesar plant was hit by violence
• Production workers attacked supervisors and started a fire that killed
company's General Manager of Human Resources Avineesh Dev and injured
100 other managers, including two Japanese expatriates also injuring nine
policemen
• On July 18, during the tea break, there were some skirmishes between the
supervisor Ramkishore Majhi and a worker Jiyalal. The supervisor was trying
to engage a few workers.
• While some reports claim the brawl took place when JiyaLal, a shop floor
worker abused Ram Kishore Majhi because the supervisor had made some
casteist remark against him
Outcome of the incident

• Indefinite suspension of Manesar plant


• Losses – 75 Cr. / day
• 21st July, company announced unpaid lockout for its employees
• Shinzo Nakanishi - de-recognise Maruti Suzuki Workers' Union and dismiss
all workers named in connection with the incident
• dismissed 500 accused workers, 148 workers were charged with the
murder of HR Mgr., 117 dismissed, 31 found guilty, 18 convicted for
rioting, 13 sentenced to life imprisonment
• re-opened the plant on 21 August, produce 150 vehicles on the first day,
less than 10% of its capacity
Findings
• Japanese management - more focused on productivity & income
• Overloading - Manesar plant overloaded with work which increased the
pressure
• Pressure from Japanese management - enhance productivity and increase
revenue
• Workers were compelled to do overtime, wherein they were not
comfortable working overtime
• Indian management unable to cope with this work culture
• Labour laws not followed, salary differences, working conditions,
discrimination between workers.

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