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Introduction

Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, has been a leader in the Indian car market since 1983, known for its fuel-efficient and affordable vehicles. A significant labor dispute occurred at the Manesar plant in July 2012, resulting in injuries, a death, and substantial financial losses for the company. The strike was fueled by issues such as salary differences, working conditions, and the demand for a new union, leading to halted operations and a loss of over INR 1,500 crore.

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Ankita Kandpal
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12 views9 pages

Introduction

Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, has been a leader in the Indian car market since 1983, known for its fuel-efficient and affordable vehicles. A significant labor dispute occurred at the Manesar plant in July 2012, resulting in injuries, a death, and substantial financial losses for the company. The strike was fueled by issues such as salary differences, working conditions, and the demand for a new union, leading to halted operations and a loss of over INR 1,500 crore.

Uploaded by

Ankita Kandpal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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INTRODUCTION

• Maruti Suzuki India Limited (MSIL) has been


established and incorporated since 1983.
• MSIL is a subsidy of the Suzuki Motor Corporation,
Japan.
• Maruti Suzuki has been renowned for producing
the most fuel efficient, affordable and reliable cars
and therefore has been the leader of the Indian car
market for over the past two and halve decades.
• Manufacturing facilities are located at two facilities
Gurgaon and Manesar.
ABOUT MARUTI’S MANESAR PLANT

• India's largest passenger car company,


accounting for over 45% of the domestic car
market
• First company in India to mass-produce and
sell more than a million cars
• Annually exports more than 50,000 cars
• It offers 14 brands and over 150 variants
ranging from peoples car Maruti Alto 800 to
the stylish hatchback
WHAT HAPPENED IN MANESAR PLANT

• On 18th July 2012 at Maruti’s labour plant, industrial


disputes broke out when workers became aggressive
and over 96 staff members were injured while also
leading to the death of a human resource manager.
• More then two-thirds of the employees were
involved in the strike, causing Maruti to lose about
INR 75 crores ($11.81 million) in revenue and INR 8
crores ($1.3 million) in operating profit daily while
also halting Maruti‟s production line causing it to
lose around 1200-1400 units daily.
DEVELOPMENT OF STRIKE

• The company knew that trouble was brewing, they knew that some
workers planned on registering a separate union and the company
had already prepared legal documents for a possible expulsion of
workers from the premises.
• Maruti Suzuki management tried to back a single union, the Maruti
Suzuki Kamgar Union, for both Gurgaon and Manesar plant.
• This union had been set-up by forces close to management after
the lock-out at Gurgaon plant in 2000/2001.
• “On 3rd of June, eleven leaders of the workers went to Chandigarh
to meet the Labour Department to complete the formalities
regarding registration of our union on June 3, 2011. On the morning
of that day, the labour department officials faxed the news of our
application to the management.
DEVELOPMENT OF STRIKE

• On the morning of June 4, 2011, through struggle, we were able to


retrieve some of the blank signed papers from the management. By the
afternoon, it became clear that the management was using all kind of
tricks to break our unity. In such circumstances, we were forced to go on
flash tool down strike from the afternoon of June 4, 2011.”
• On the 4th of June after the change between morning and late shift
around 2,000 workers stop work and remain in factory. Later on, the C-
shift would not be refused entry by management and these workers
largely remained outside the factory.
• During this initial stage, workers raised various issues and demands: low
wages, incentive cuts, few breaks. The workers have demanded that the
temporary workers should be given preference for permanent posts in
new departments, which the company is currently building on the
premises.
CAUSES
• Differences in salary pay
• Working Conditions
• Unions generally limit themselves to acting as
a voice of permanent employees
• Demand for a new union
IMPACT
•Operations stopped for a •Large labor-
month. unemployed
•Loss estimated to be over •GDP affected
Rs. 1,500 crore
•Fear of insecurity to the •Loss of country
employees and their families resources
•Problem of lack of labor •Disturbance- affecting
resource the common man
•Maruti changed its
recruitment policy
•Goodwill affected.
PROBLEMS
• Lack of communication between HR people
and labour
• Lack of coordination between labour union
and HR department
PROBLEMS FROM WORKERS VIEW

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