You are on page 1of 1

LOSS IN REVENUE maruti Suzuki India Ltd has incurred a revenue loss of Rs1,500 crore since 29 August due

to labour problems at its Manesar plant that has seve rely hit production. According to company chairman R C Bhargava, the company's production had suffere d and it had made 50,000 fewer cars due to the unrest till yesterday. Maruti's Manesar plant resumed production yesterday, after striking workers were evicted from the factory premises on Friday following a court order. Though the company started operations at a weld shop in Manesar on Monday, vehi cle production started only yesterday, Maruti said. workers had struck work since 7 October, demanding the reinstatement of 44 colleagues who weren't taken back by Maruti following the settlement of a dispu te that stretched over 33 days and ended on 1 October. The previous strike came after the decision by Maruti on 29 August to ask workers at Manesar to sign a "g ood conduct bond. " The company had to take the step after it found "serious and deliberate" quality problems in cars made at the plant. Bhargava said, the current production level was 50 per cent lower than what the company had planned for this time of the year. However, according to a report by news agency IANS, the strike at Manesar p lant continued for the 12th day yesterday with no sign of the management or work ers relenting to end the stand-off. Though the two sides had held talks, these did not make much headway. An unnamed senior company official told IANS that the talks had started again yesterday wi th the Haryana state government also involved. IANS said production had started at the Manesar and Gurgaon plants with the comp any getting temporary workers at the Manesar facility to roll out is best sellin g Swift model. The official said that in Manesar, those workers who stayed away from the strike had also been employed for production. Production at the Gurgaon plant touched 1,700 units on Monday, which was down from the 2,800 vehicles ave rage daily production. production also got under way at Suzuki Powertrain India Limited (SPIL), the company supplying diesel engi nes and transmissions to the automobile giant. The workers at SPIL had halted pr oduction to express solidarity with the striking workers at the Manesar. However, the two-wheeler plant of parent Suzuki remained shut in response to a c all by the workforce there to support the Manesar stir. Continued labour troubles and intensifying competition from other automakers hav e hit the Maruti Suzuki stock which was down to a 52-week low on Friday. The Manesar facility rolls out 1,200 units in per day.

You might also like