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Case Study on Strike at Maruti Suzuki India

Case Study on Strike at Maruti Suzuki India

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Published by Suman Gadwal

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Published by: Suman Gadwal on Nov 19, 2012
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12/04/2012

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text

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Presented by: Pallvi Kamalpreet Kaur Neelam Nakra Mamta Sharma Sapna Jha Apijeet Kaur

The case is about Maruti Suzuki India ltd an oldest automobile company Two facility locations are at Gurgaon and Manesar, south-west of New Delhi. The Case is based on the situation of labour unrest at the Manesar plant occured in June 2011 The detailed analysis will include the cause of the unrest, its consequences& the final settlement of 13 day long strike

 

 

Maruti being an oldest player has faced many labour relations problem right up from sept 2000 till 2012. Due to which, it has faced a dipped market share Production loss of around 12000 cars and 4.2 billion rupees Delayed bookings and no-advances Leading to borrowings for working capital requirements.

All of the problems have taken place due to 13-day long strike at Manesar plant of 2000 workers on the following issues:  There was a huge difference in the status of permanent and contractual workers  Workers’ demand was to recognize a new union named Maruti Suzuki Employees Union (MSEU)  Management had forced its workers to join an existing union at Gurgaon named Maruti Udyog Kamgar Union which workers said is a Pocket Union of Management.

The Management asked its workers to sign a “Good Conduct Bond” which workers refused to do so Due to the different views of both parties, workers went on strike on 4th June,2011 The strike led to dismissal of 11 employees by the management Main trade unions AITUC, CITU, HMS, INTUC, UTUC formed a joint-action committee which led to the number of striking workers to 3000.

As per the Contract Labour Act 1970, every contract worker has a right of being given Parity of Pay and some benefits for similar work which were absent at Maruti’s place. As per the Trade Unions Act, 1926 Management has no right to restrict workers to form a union A statement given by an ex-labour secretary that management has no right to force its workers to sign any kind of good conduct bond, it should be mentioned in its standing orders itself.

As per the Industrial Disputes Act,1947 there should be prior notice to be given before going for strike which was absent and which makes the strike illegal. On June 10th The Haryana Govt. declared it as an illegal strike but which was still continued


On June 17th the strike was called of in the labour court. Management reinstated its 11 sacked employees for a domestic inquiry There was no-wage for no-work period of strike The registration process for the new union was started and Finally both parties agreed to work with cooperation.


 

Settlement through a Works Committee
Collective Bargaining

Voluntary Arbitration

Maruti must implement all the terms mentioned in the agreement to form a Grievance Settlement Authority and a Labour Welfare Committee.

Management

must

follow

best

corporate

Governance practices

It must learn from the industry to be a model employer

Management must ensure a parity among its employees.

HR system should be responsible for having sound relations at shop floor also

Maruti

should

eliminate

its

so

called

“Mahapanchayat” system.

 

 

What is the basic reason of strike at MUL? What are the difficulties faced by the labours ? What are the results of strike ? What could have been done before the problem started?

Poor Industrial relations are bad for everyone Maruti being an oldest player should have learnt to maintain its relations For sustainable success, one has to go through the phase of trade-offs It is the duty of the management to solve the problems of its people empathetically.

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