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Maruti Case Study

Maruti Case Study

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Published by Kumar Raghav Maurya

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Published by: Kumar Raghav Maurya on May 04, 2012
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07/31/2013

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MARUTI SUZUKIMANESAR STRIKECASE STUDY
 
OVERVIEW
India's largest passenger car company, accounting for over 45% of the domestic carmarket.
•First company in India to mass
-produce and sell more than a million cars.
• Annually exports more
than 50,000 cars
•Manufacturing facilities are located at two facilities Gurgaon and Manesar.•It offers 14 brands and over 150 variants ranging from peoples car Maruti 800 to the stylish
hatchback.
REASONS FOR STRIKE
Cockroaches and dead flies found in the food in the hurried lunch-break that workers earn inthe canteen half km from the working station. The teas was without tea leaves or sugar in the7 minute break The company doctor give heavy doses of medicines even on minor complaintso that disruption of work could be prevented. One day
s wage cut of Rs.1500, two day
sRs.2200, three day
s cut of Rs.7-8000 is implemented, so that almost the total month
s wageis cut. One second late into punching-card entry is a day
s wage cut, but they have to give fullproduction for that day too.
DEMAND OF THE WORKERS
Worker
s demand to establish an independent union Maruti Suzuki Employees Union(MSEU) in the company. Currently, the company has one recognized union
 – 
Maruti UdyogKamgar Union which is dominated by workers at the Gurgaon plant.
 
REACTION OF GOVERNMENT
Oct. 8: The Haryana Labour and Employment Minister, Mr Shiv Charan Lal Sharma, hasexpressed disappointment with the striking workers at Maruti Suzuki's Manesar plant forviolating the agreement signed with MSIL.
 
 
LIST OF EVENTS THAT TOOK PLACE
IN DECEMBER 2010
The Manesar workers began discussing how to field their own candidates for a new unioninstead of being folded into the Maruti Udyog Kamgar Union (MUKU), the only recognisedcompany union. MUKU is viewed as a management- controlled union mainly for theGurgaon plant workers, whose spirits were crushed during their own agitations in 2000.MUKU has traditionally not held elections. Workers know that the time-honouredmanagement tactic is to fire their leaders. Since December, the Manesar workers andmanagement have played a game of hide and seek.
ON 3 JUNE
The Manesar workers formally applied to form a separate union called Maruti SuzukiEmployees Union (MSEU). They say the company responded by suspending 11 workers andsending bouncers to force them to sign blank pieces of paper.
ON 4 JUNE
 
The workers struck work on 4 June and held a sit-in inside the plant for 13 days till their 11colleagues were reinstated, though the main issue of unionisation remained unresolved. Theyallege the management next resorted to things like putting cockroaches and dead flies in theircanteen food
 — 
 
fact or angry rhetoric, there‘s little way of verifying.
 Meanwhile, the file to register MSEU in the labour office was cancelled.
Reasons:
1.
 
The employees resorted to an illegal strike;2.
 
Among
those who‘d signed for a new union, many still retained MUKU membership;
 3.
 
Some
signatures didn‘t match with the registered ones.
 The revolting works
say they‘d all resigned from the old union and these technical reasons
merely indicate how hand-in-glove the Haryana government is with Maruti Suzuki.
JULY 2011
 
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

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