Details about the MARUTHI SUZUKI's Strike

Hi, I am a MBA student. I want to know about the Labour Problem which arouse in the Manesar Plant. Key Details needed: 1 Reason for the strike 2 How the problem was solved 3 What are the mediums used in the solving process( Govt, Mgt, Labor union, Labour Court, etc) 4 What is the final resolution of the problem? " Shared Knowledge is Increased Wealth" Formation of a Workers Union was the reason. A report in the web on the Strike goes on like this: "At least 2 million workers work in hundreds of units situated in the vast industrial belt in and around Gurgaon. There are around 1 million workers work in the units of automobile industry alone. These workers who produce auto parts for companies from all over the world in modern factories have to work in very bad conditions. More than 90 percent of these are contract workers who work for 10-12 hours for 4000-5000 per month. The workload and speed is extremely high and they have to face verbal abuse and even beatings by the supervisors and security guards. Most of the factories do not have unions and where the workers have managed to form a union, they have to face constant harassment. The established big unions do nothing except paying lip service to the issues and in many cases have ditched the workers in favour of the management. In this scenario, the issue of the right to form a union is a common and universal issue in the Gurgaon industrial belt. The pamphlet distributed by the Bigul Mazdoor Dasta says that not only the workers of Maruti Suzuki but workers all over the country are being denied the right to form their unions so that they can raise their voice unitedly against their exploitation. Thats why the demands of Maruti workers find resonance across the region. Further material in www.outlookindia.com | Lockdown And After goes on like this and gives a balanced perspective.All other views were mostly supporting the Management. "In many ways, the 13-day strike at Maruti Suzuki India Ltd, Indias largest automobile manufacturer, was a wake-up call for the Indian corporate sector. Not only did it illustrate the unity among the companys workers, but with workers and unions across states voicing support, it threatened to flare up into a wider industrial dispute, giving strong signals of a resurgence of trade union activity in the country. It wasnt a wage hike or improvement in working conditions but the right to form a unionsomething of a rarity in the new industrial ecosystem in Indiawhich saw 3,000 employees of Marutis Manesar plant in Haryana striking work on June 3. The plant workers wanted to register a new unionthe Maruti Suzuki Employees Union (MSEU) and had already applied for registration, something the management was opposed to. Maruti officials were not available for comments when contacted. Managements do not want to have unions. They want to make the unions subservient to their interests.Gurudas Dasgupta, CPI Union activities of yore, like the long-drawn Bombay textile strike in the 1980s, had of late seemed a thing of the past. In the last decade or so, due to new management practices of hiring employees on contract and not putting them on the rolls, the number of industrial disputes and strikes in the manufacturing sector had scaled down from around 250 in 2004-05 to under 100 in 2010. In 2011, this has been the only major strike so far. Labour leaders contend the lack of union activity in the industrial sector is because of large-scale suppression of labour rights and union voices. Says Gurudas Dasgupta, general secretary of the CPI-supported AITUC, Managements do not want to have unions. They want to make the unions subservient to their interests and compel the workers to be part of a union controlled by them. Adds Dipankar Mukherjee, secretary, CITU, Post-1991, all companies, be they mncs or Indian, have not wanted unions to be formed. Its a pattern among new companies also, they either do not want unions or have pocket unions who support the management. The fact that incidents of flash strikes or even violent attacks on members of the management have not yet dissipated is testimony to the fact that all is not well on the labour front. The corporate sector, however, disagrees with this view, contending that best management practices are being followed. As Y.K. Modi, chairman and CEO of the Great Eastern Energy Corporation and a former FICCI president, puts it, The very fact that industries everywhere are generally having uninterrupted activity without labour trouble illustrates that there have been good practices mostly. Since the issue at Manesar was amicably settled through discussion, theres no reason to react on this matter.... I do not see the emergence of an era of nationwide militant trade unionism. The fact that 65 unions in the nearby industrial belts of Noida, Dharuhera, Manesar and Gurgaon had voiced their support and about one lakh workers from 50-odd industrial units in these areas had decided to go on fast last

Friday reflects a different workers perspective. Interestingly, many of these companies are associated with the automobile industry. Nations are competing against each other for market dominance. Any disturbance affecting productivity is bad.Y.K. Modi Ex-FICCI president Although the strike at Maruti has been called off and the matter resolved for the time being, there are hushed discussions across companies on the way managements handle workers and trade union issues. Says BMS spokesperson Amar Nath Dogra, A strike is not the first but the last option for workers. If it happened, it was because there were issues with the way the management dealt with workers demands. There is a mechanism where workers and management recognise unions and decisions are taken with mutual discussion. We are concerned about the way the company handled the situation. Experts stress that the trend of hiring workers on contract rather than taking them in as permanent employees gives company managements the right to hire and fire on issues of performance or in times of recession, something not easy in case of permanent employees under Indian laws. According to rough estimates, over 50 per cent of workers in most of the large companies are on contract and do not have rights to join unions or can only join one that is recognised, even suggested, by the management. The general view among workers is that managements cannot dictate which unions workers should get affiliated to as it is their right to register or join a union. Says Mukherjee, Employees have the right to form unions. Labour laws do not give managements the right to dictate which union the workers should join or what their political leanings should be. The demand for a new union at Marutis Manesar unit may be a signal of discontent amongst workers regarding management practices and their own rights and the lack of a redressal mechanism. Coen Kompier, labour standards specialist with the International Labour Organisation (ILO), says, In general and compared to many other countries, the industrial relations system in India is very confrontational, which harms the interests of all parties.... A new era in the trade union movement will happen only if unions can operate in full freedom. The employers havent acted intelligently here. Their actions harmed Marutis productivity, says ILOs Kompier. The CPIs Dasgupta remains optimistic that the Maruti strike will open up the scope of the trade union movement and will work towards unity of workers and inspire them in future. Given the fact that the 13-day strike led to production losses of over 12,000 cars and business losses of over Rs 400 crore, the corporate sector obviously has a different view. One which is strengthened by the fact that apart from Maruti, vendors and companies associated with it also suffered significant losses. Industrial disputes anywhere are bad. These cause losses for both workers and investors. Consumers too face problems. All nations are competing against each other for market dominance. Any disturbance affecting productivity is bad, points out Modi. So whats the way forward for companies and workers? Modi feels there must be more effective utilisation of industrial dispute resolutions as contained in the ILO governing council resolution on tripartite consultation convention 1976, a part of the ILO Plan of Action 2010-16. Considering that neither the BJP-led NDA government nor the Congress-led UPA one has shown any political will to pursue labour reforms, including ensuring that workers (whether permanent or contractual) are given their legal dues, it may finally fall on the workers and union leaders to chart their own course. Unless, of course, the government wakes up to the need to strike an equitable balance. " More materials are available in the web . rajanlawfirm Pls see :Legal Compliances required for the Staffing Industry

aussiejohnSubject - Re: Details about the MARUTHI SUZUKI's Strike

There is plenty of information on Google about this.

As part of your MBA studies you are supposed to be learning how to research and synthesise information to write your reports. If you ask other people to do the work, YOU end up learning nothing. In that case, why are you bothering to study for an MBA? maruthi suzuki strike - Google Search

K.V.MohananSubject - Re: Details about the MARUTHI SUZUKI's Strike

I agree with John. The persons who are helping you are also taking pain to collect the information. The same can be done by MBA students. Without any malice

Mohanan Noida.
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sadishshanmugamSubject - Re: Details about the MARUTHI SUZUKI's Strike

Quote:

Originally Posted by K.V.Mohanan I agree with John. The persons who are helping you are also taking pain to collect the information. The same can be done by MBA students. Without any malice Mohanan Noida.

Thank You for ur Feed Back... Instead of Agreeing with Mr John, you would have stated some more tips for me, it would have been more Helpful.. Thank You...

sadishshanmugamSubject - Re: Details about the MARUTHI SUZUKI's Strike

[QUOTE=aussiejohn;1634090]There is plenty of information on Google about this. As part of your MBA studies you are supposed to be learning how to research and synthesise information to write your reports. If you ask other people to do the work, YOU end up learning nothing. In that case, why are you bothering to study for an MBA? Sorry, it is a communication mishap from my side... I already got the data related to the issue from the net... I data is not clear and I am not satisfied with mine. So, I posted the Question only to get more details. Actually, ALL I WANT IS HOW THE PROBLEM HAS BEEN SOLVED? I knew, It was Labour Minister of the State and the Unions were involved in this, But i want indepth knowledge... I kindly Oblige your advice... Thank You... Mr. Rajanlawfirm Thank you very much.... Thank You....

sadishshanmugamSubject - Re: Details about the MARUTHI SUZUKI's Strike

aussiejohnSubject - Re: Details about the MARUTHI SUZUKI's Strike

I am sure the court proceedings from this case will be recorded somewhere. Rajanlawfirm may be able to assist with information as to where you would find that. Secondly, one idea maybe that you make a list of the questions you have based on your research, and forward those to the Office of the Minister of Labour f the State concerned. I would also suggest approaching the Union concerned for their insights into the case. As a MBA student, you are being trained and tested on your ability to do serious research and that often involves thinking outside the square. I would suggest that if you can get information direct from the actual participants in the case, then that will enhance your project, and your sense of achievement will be far greater than just asking CiteHR members to give you the information.

sadishshanmugamSubject - Re: Details about the MARUTHI SUZUKI's Strike

Quote:

Originally Posted by aussiejohn I am sure the court proceedings from this case will be recorded somewhere. Rajanlawfirm may be able to assist with information as to where you would find that. Secondly, one idea maybe that you make a list of the questions you have based on your research, and forward those to the Office of the Minister of Labour f the State concerned. I would also suggest approaching the Union concerned for their insights into the case.

As a MBA student, you are being trained and tested on your ability to do serious research and that often involves thinking outside the square. I would suggest that if you can get information direct from the actual participants in the case, then that will enhance your project, and your sense of achievement will be far greater than just asking CiteHR members to give you the information.

ssues Between the management of Maruti Suzuki and their workers are still not resolved which has taken the ongoing strike to enter in the 11th day. This ongoing strike at the Manesar plant has cost the production loss of approximately 9000 cars which is a big revenue loss. Maruti Suzuki have agreed to the workers demand by accepting the new union and agreeing on taking back the five laid off workers but protestors are still not ready to negotiate with the management. Haryana labour commission is not in favour to see the new union being formed. To support Maruti workers, tomorrow more than 50 unions from Gurgaon-Manesar belt will be going on a 2 hour tool down strike. Approximately 50,000 workers will not be working for 2 hours to stand in support to the workers of Maruti Suzuki Manesar unit. It seems this strike will stay on till the demand to take back all dismissed workers by Maruti Suzuki management and new commission by Haryana labour commission will not be fulfilled.

CURRENT AFFAIRS

MARUTI

Why they strike. Why you should care

What is happening in Maruti Suzukis Manesar plant? How do workers present their case against the noise of modern India? The devil is in the details, find Nisha Susan& Gaurav Jain

SONU GUJJAR is unprepossessing. Small, slender, boyish. No fire and brimstone union leader, this. In our age of email and anger, a 24 -year-old Indian worker leader prefers to find his advantages in wit and paradox.

It is already Day 14 of the Maruti Suzuki workers agitation for their right to unionise. Under the pink tent across the street from the companys plant in Manesar, Haryana, when Sonu begins speaking to the group of around 1,000 permanent and 2,000
All zindabad Sonu Gujjar (standing far left) and Sonu Nehar (far right) rallying the workers

contract workers, he is soft spoken. It takes a while before you realise the challenge his rhetoric poses. Going over the blandishments and threats

AL SO RE AD M aruti w ants to pa y Rs 185 cr more to Suzuki as ro yalt y Second To None Burn fa t, earn mone y

that have come their way since the young workers first began their fight for representation, he has a way of making them sound ridiculous. W hen told that the workers can come back to work if they agree that several others stay terminated, he suggests Haan theek hai, perhaps

the management can arbitrarily fire some executives as well. Just to level the playing ground. W henever a politician or Maruti Suzuki executive tries to claim to be like his grandfather, he smilingly welcomes the epithet. He says when it was suggested that good conduct means workers should not talk to each other, he replied Bhai theek hai hes game if his superiors agree no t to talk to each other too. Just to keep things on par. A subsidiary of Japans Suzuki Motor Corporation, Maruti Suzuki India Limited is Indias largest automobile company with a major share of the countrys car market. Since trouble began in June, most m edia reports have only discussed labour militancy, the unfortunate delays in the production of the new Maruti Swift, and the happy but slim resumptions of production. Meanwhile, the workers talk of their urban cattle life, a livelihood most of us would find unacceptable if applied to us.

Here is what a Maruti Suzuki worker says his average day at the Manesar plant is like. You catch a bus at 5 am for the factory. Arriving a second late to punch in your card means a pay cut, but you cant leave the premises once youve entered. At 6.30 am, you exercise and supervisors give you feedback on your previous output. Start work at 7 sharp. Everyone does his one task assembling, welding, fixing for a minimum of 8 continuous hours. A car rolls off the line every 38 seconds, which means you cant budge from your position, ever. You get two breathless breaks during the day. At 9 am, a 7 -minute break to drink tea or go to the loo, or both. After a while you might, like many of your friends here, end up taking your h ot tea and kachori to the bathroom with you. Then a lunch break of 30 minutes, in which you walk about a half kilometre to the canteen, wait in line with everyone, eat and walk back. Returning even a minute late from any break, or leaving the assembly line for any reason even for a minute, means half a days pay cut. Older systems used to include an overseer for every small group of workers who could step in if someone needed to take a breather. But, the cost logic of production is perennially at odds with workers rights.

Sonus rhetoric pierces our mute acceptance that the world can function as it does only if some unfortunates are treated like this. If we dont blink at seeing a man climbing down to unblock a sewer for a few hundred a month, its likely we think of a Rs 16,000 factory job with a uniform as clean and comfortable. But even the salary is an illusion, as the workers salary slips show. A baseline of Rs 8,000 is all most are guaranteed. Take a day from your legally granted casual leave or sick leave, for any reason, and lose Rs 1,500. Take two and lose Rs 3,000, and so on up till half your salary disappears. W hen TEHELKA emailed Maruti Suzuki asking about conditions like break durations and pay cuts, their official spokesperson responded: If at tendance is below a certain level, performance incentive is less to that extent. The terms and conditions of all workers, including duration of breaks, are uniform for employees in Gurgaon and Manesar.

IN DECEMBER 2010, the Manesar workers began discussin g how to field their own candidates for a new union instead of being folded into the Maruti Udyog Kamgar Union (MUKU), the only recognised company union. MUKU is viewed as a management - controlled union mainly for the Gurgaon plant workers, whose spirits w ere crushed during their own agitations in 2000. MUKU has traditionally not held elections. W orkers know that the time-honoured management tactic is to fire their leaders. Since December, the Manesar workers and management have played a game of hide and se ek.

Sonu Gujjar was deliberately an unlikely choice. He has pride in his work ethic and has won the best operator award and the MDs award for best employee. Over five years, his attendance has averaged at 98 - 99 percent. No trouble was expected from him. He is a manifestation of what the workers say their MBA -toting seniors are unable to conceive: a unionised workforce that has rights and is also interested in raising outputs in the hope of prosperity. After word leaked that Sonu was going to stand for ele ctions for a new union, he says he spent entire days in the companys HR office being counselled and cajoled. Bribes, threats, dire predictions, a conversation with the MD the company only managed to convince its workers that it is not on their side and theyd better watch out.

On 3 June, the Manesar workers formally applied to form a separate union called Maruti Suzuki Employees Union (MSEU). They say the company responded by suspending 11 workers and sending bouncers to force them to sign blank pieces o f paper. The workers struck work on 4 June and held a sit -in inside the plant for 13 days till their 11 colleagues were reinstated, though the main issue of unionisation remained unresolved. They allege the management next resorted to things like putting c ockroaches and dead flies in their canteen food fact or angry rhetoric, theres little way of verifying.

Meanwhile, the file to register MSEU in the labour office was cancelled. Reasons: the employees resorted to an illegal strike; among those whod sign ed for a new union, many still retained MUKU membership; some signatures didnt match with the registered ones. The revolting workers say theyd all resigned from the old union and these technical reasons merely indicate how hand -in-glove the Haryana gover nment is with Maruti Suzuki. The Trade Union Act says the union should be of the workers choice and should have annual elections, else the labour commissioner can disband it. After the June agitations, MUKU perhaps felt compelled to hold its first elections in almost a decade in July 2011. The Manesar workers say theyd have abstained anyway from voting for this pocket union but the elections were designed to happen without their participation. Maruti

Suzukis official spokesperson told TEHELKA that sinc e MUKU is a company-recognised representative body of the workers, all workers can channelise their suggestions and grievances through this body. In a conversation with TEHELKA, the recently elected MUKU General Secretary Kuldeep, who works at the Gurgaon plant, remained vague about previous MUKU elections, saying that they happened by a show of hands, while the spokesperson said, W e cannot comment on internal matters of the union. The dirty agendas and chequered record of many unions may create suspi cion but shouldnt negate workers right to organise. The spokesperson told TEHELKA that outside control of unions by nonemployees is an unhealthy practice and the company does not permit it, and that it wants only one single union with no political affiliation. W hen pressed on how the new union would have political affiliation, outside control or non-employee participation, the spokesperson only said, W e have stated the principle. W e have not commented on any specific outfit. Theres a darker back story of Maruti Suzuki unions. Before MUKU there was the Maruti Udyog Employees Union (MUEA). In 2001, Suzuki took over the company and won a case to appoint its own MD, and the Gurgaon workforce protested subsequent salary cuts and w ork intensification. There was a grim three -month battle with water cannons, mounted police and hunger strikes ending in MUEA leaders arrests. The management recognised a new union called MUKU and insisted as it is doing now that all workers sign a good conduct bond. Many MUEA sympathisers were terminated. MUEA was derecognised by the government on charges that still lie in court. Over the next year, around 1,000 workers were offered a Hobsons choice of voluntary retirement or termination.

Throughout The MBAs cant conceive unionised w orkers w ho also w ant to raise production outputs the current crisis, the company has had on its side the police, the labour commissioner, the politicians, its bouncers as well as most of the media. On 28 August, Maruti Suzuki called a large police backup inside its Manesar plant and suspended 21 workers on charges of sabotaging production and deliberately causing quality problems, and terminated or suspended some others too. The alleged sabotage is of vehicle door no t properly clamped leading to doors falling during production, cutting wiring harnesses, dents on the body and critical components not fitted on vehicles, but the spokesperson presented no evidence to TEHELKA of these charges except pointing to declining production and Quality OK numbers on 23, 24 and 25 August. The spokesperson wouldnt confirm if theres any video evidence from the numerous surveillance cameras but did claim to have photographs. In the following days, there was a plant lockout with the company saying only those who signed a Good Conduct Bond could work, so that it gets the legal right to fire anyone who indulges in go -slow, intermittent stoppage of work, stay-instrike, work -to-rule, sabotage or any other activity having the effect of hampering normal production. Plus a double whammy if they didnt sign, theyd be considered on strike. The workers have refused, demanded their 49 colleagues reinstatement and held regular demonstrations.

WORKERS RECOUNT how strikes have hit the Harya na automobile belt over the years. There was a police action on a Honda workers demonstration in 2005. Hero Honda saw 3,000 workers doing a five -day occupation the next year. Rico Auto faced a 43 -day strike in 2009 that also hit General Motors production in the US.

Most observers say that the conditions in Maruti Suzuki are not that different from other companies. But the Manesar workforce is an anomaly. The plant started in 2006, so most of the labour is still new in its servitude. Almost all the men are under 25, unmarried and recent graduates from an Industrial Training Institute (ITI) in their part of India. Facts they hold up frequently with the line: W e cant be pushed to go back to work because were not worried about children or house loans. As importantly, the wedge between permanent and contract workers hasnt solidified here as it has in older plants, where both groups work together for massively disparate pay for the same work. Hence the unique scene in Manesar where both groups are agitating in solidarity. Says J John, a Delhi -based expert on labour issues, W hat is of concern is that 60 -70 percent of this sectors workers are labelled contract workers, trainees and apprentices. Companies use the freedom of contract labour to continuously repl ace workers through the system. They are bringing in a new culture where negotiations are with individual workers, not collectives.

Most of the workers are like Bittu, still a bit astonished that this is his youth. Bittu grew up in a farming family in Narwana, Haryana. He and his two friends wanted to be teachers but he couldnt afford the training course and opted for the one -year ITI course. At ITI, everyone dreamt of companies like Honda and Maruti Suzuki. If only someone had told me what its reall y like, he now rues. I persuaded two cousins recently against following me. I made them go into other courses. Or take Sonu Nehar, an assured rebel whos worked here for five years and says, My wife is the principal of a private school in Gurgaon. W e c an fight for a better future. W hy are these Sonus and Bittus standing so determinedly against the mighty Maruti Suzukis record of dealing with worker unrest? Sonu Gujjar shrugs. I grew up 20 km from here, he says. My parents are small farmers. My uncle is a major in the army. Another is fairly high -up in Delhi airport security. I talked it over with all of them. They said: If thousands are willing to trust you, dont let them down.' You get a better hint from Joginder Singh, a 28 -year-old and one of the few workers with children, who says, My wife and I talked it over. W e decided were young enough to fight this. W hat do we have to lose? If we win, we dont have to be slaves any anymore. If we lose, Ill find work somewhere else. This is the nub tha t nobody outside the protestors tent seems to see. The workers will find other work, perhaps even change industries. Many secretly welcome the prospect. But even if Maruti Suzuki replaces its Manesar workforce with a new one, as it is threatening to do, h ow will it ensure that its new workers also young, educated, unmarried and with nothing much to lose will not also eventually agitate for a separate union? The fight will be determined by who caves in first. For now, the workers say they are ready for the long haul. They invoke Gandhi frequently, of how young Bhagat Singh was when he died. And suddenly you get a glimpse of Indias famed demographic dividend. Young people who have enough selfworth to decide that the Maruti Suzuki W ay of Life is subhuma n. W hy is the company refusing to even acknowledge the need for a structural solution improving worker conditions and admitting their right to organise? Maruti Suzuki Chairman RC Bhargava reassured the companys AGM this month: The Manesar labour proble m is essentially a political issue and not a problem

which involves any significant demand from the workers. Similarly, Suzuki Motor Corporation Chairman Osamu Suzuki, on an India trip this month, told MUKU representatives: Indiscipline is not tolerated not in Japan, not in India. It is never in the interest of any company and its people. From top down, the entire corporation is now parroting its emperors brush -off about indisciplined workers.

As this goes to press, the Suzuki Powertrain plant and th e motorcycle plant have also struck work in solidarity for their assembly line comrades in Manesar. The companys core crisis team is scrambling to manage these unanticipated eruptions. J John comments, W e should ask if the person producing a product is d enied living wages and human rights. W ho is producing this car that Im buying, and at what cost? This is the structural corruption of companies that squeeze heavy margins by keeping their workers unorganised and unempowered, by keeping them informal host ages. It makes us all who work in and consume these companies products complicit with their decay. http://tehelka.com/story_main50.asp?filename=Ne240911Why.asp#****

Workers strike at Maruti's Manesar plant

Press Trust of India, Updated: June 04, 2011 21:37 IST

New Delhi: The country's largest carmaker, Maruti Suzuki India (MSI), said on Saturday that work at its Manesar plant was affected this afternoon when a section of workers went on a strike. "A section of workers stopped work for a few hours on Saturday afternoon at Maruti Suzukis Manesar plant," the company said in a statement, without specifying the reasons for the strike. Management representatives were talking to the workers to understand the situation and find an appropriate solution, it said. MSI, which has a plant each at Manesar and Gurgaon, did not say how much production was affected as a result of the strike. Further, it said its operations at its Gurgaon facilities were normal.

Sources among workers said the striking employees were demanding the recognition of a new union formed by those working at the Manesar plant in Haryana. "There is an old union under the Maruti Suzuki Kamgar Union, which is mainly dominated by those working at Maruti's Gurgaon plant. We had formed a new body named Maruti Suzuki Employees Union, mainly by workers at the Manesar plant, and have been asking for recognition from the management," said a source. The management was not recognising the new body, the source claimed. Besides, the workers were demanding that no action must be taken against the 11 office bearers of the new union. They were also asking for retention of old contract workers for the upcoming two new units at the Manesar plant, the source said, adding that there were around 2,000 employees at the Manesar plant. MSI is setting up two new units with an annual installed capacity of 2.5 lakh units each inside its Manesar facility at a total investment of Rs. 3,625 crore. While the existing plant in Manesar can produce 3.5 lakh units annually, its three units in Gurgaon have a combined annual capacity of 8.5 lakh units.

The last time the company witnessed a major strike was when workers stopped production for three months from November 2000January 2001.

http://www.ndtv.com/article/india/workers-strike-at-maruti-s-manesar-plant-110186?cp